Impact of Global Financial Crisis on Indian Banking Sectors: Strategies for achieving sustainable growth
Journal Title: International Journal of Physical and Social Sciences (IJPSS) - Year 2011, Vol 1, Issue 2
Abstract
The World Financial System is now undergoing a Global Economic Crisis of staggering proportions. The root cause of the economic and financial crisis was the United States mortgage market by selling sub-prime mortgages to large number of consumers with inadequate income. These mortgages were bundled into securitized paper investments and sold by Wall Street to major financial institutions across the globe. When the mortgages became non-performing, these securitized assets were transformed into toxic acid infecting the entire worldwide financial system. Indian Banking System comprises of Nationalized Banks, Private Sector Banks and Foreign Banks. This combination has been working marvelously since our liberalization process started in 1991. On the backdrop of recessionary trends in US, European and other developed countries, the under developed and developing countries including India have also experienced the pinch. During the worldwide recession that began in the later part of 2007, Indian Banking Industry felt immense pressure, but it could wither away those in a very systematic manner. There are various reasons for these tremendous achievements, including a conservative approach by Indian Banks on providing loans, exploring new markets which are immune to Global Meltdown, heavy focus of cost cutting and most importantly adhering to the strict guidelines issued by Reserve Bank of India (RBI). The methodology adopted to analyze the performance of Indian Banking Industry is to study the three most significant parameters such as Net non-performing assets as a percentage of Net Advances, Capital Adequacy Ratio and Return on Assets. The period of study covers from 2005-2010. All the data are secondary in nature. This paper focuses on the various factors with respect to Global Recession and the challenges faced and the strategies adopted by the Indian Bank to sail through the difficult times of recession.
Authors and Affiliations
Mr. Rabindra Ku Mohanty, Mr. Duryodhan Jena, Dr. Subhasmita Biswal
Keywords
Related Articles
- EP ID EP41503
- DOI -
- Views 530
- Downloads 0
Ways of improving the tax mechanism for small businesses and entrepreneurship in the Republic of Uzbekistan
The article considers such issues as the role and development of small business and private entrepreneurship in the Republic of Uzbekistan, the unification of the taxation system for microfirms and small enterprises, t...
ORGANIZATIONAL CLIMATE AND JOB SATISFACTION: AN ANALYSIS OF PAPER INDUSTRY
Organizational climate serves as a measure of individual perceptions or feelings about an organization. Organizational climate includes management or leadership styles, participation in decision making, provision of ch...
Resistance Measurement of blood serum of Bovine,Avian and Caprine
Zinc oxide nanoparticles were synthesized by chemical bath deposition method. The samples of blood serum were characterized by X-ray diffraction (XRD) and transmission electron microscopy (TEM) after mixing it with Zn...
Racial Differences in Mate Selection Criteriaamong Malaysian Undergraduates
The purpose of this study was to examine whether racial differences existed in the mate selection criteria of undergraduate students in a public university. The participants recruited in this study were 132 undergradua...
Role of Legal Fraternity in Imparting Legal Literacy: A Study in Indian Context
Knowledge of Law of the one‟s own land is one of the most effective vehicles of development of its country. Ignorance of law of the land is no excuse. Ignorance of law can be wiped out only by spreading legal awareness...