Development Of India's Banking Industry: Regime, Reform And Efficiency

This article focuses on the development of India's banking industry since its independence from the perspective of regime development,banking reform and efficiency.Chapter 1 states the purpose of this research.The reason of why India chosed is that India is one of the largest developing countries in the world only second to China,but the route of India's economic growth has a little bit difference from China.As a key component of the economy,banking industry has played an important role in its economic growth.To research India's banking industry enables us to have a better understanding on India's economic growth.Chapter 2 gives a brief introduction to the system and structure of India's banking industry.It mentions that India's banking industry has a segmented structure.By constructing different banking network,India formed the banking segment to serve different customers.Chapter 3 defines the banking industry development into 3 stages.First, private banking domination;second,banking under nationalization;third, banking reform since 1990 which could be divided into 2 periods by southeast Asia Finance Crisis guided by Narasinham CommitteeⅠandⅡ.Chapter 4 gives an introduction to India's scheduled commercial banks performance.Since Chapter 3 has given some reviews on the history of reform of India commercial banks,this mainly focuses on the Non-Performing Assets issue of commercial banks and tries to disclose the reason of India banks' low efficiencyChapter 5 discloses the rural banking system with India characteristics.As the key channel of credit to agriculture development,rural banking system not only played an important role but also sacrificed a lot for agriculture and allied industry.The rural banking system is related to commercial banks forced to enter rural markets,regional rural banks particularly set up for rural economy, rural cooperative credit institutions with long history.Especially,SHG-Banking Linkage Programme and Kisan Credit Card Scheme are two promising creative rural finance policies.Chapter 6 summarizes the Indian experience and points out that lessons could be learnt from India's banking development and proposes some policy suggestions on China's banking development.