Page 45 - Banking Finance October 2015

ARTICLE
Deployment; Gross NPAs and Net NPAs of SBI during the
period from 2007-08 to 2013-14. The analysis from the
data helped to arrive at meaningful inferences.
1. Introduction
Banks are the critical organizations for stability and
development of the economy. The banking scenario in
India is at the cross roads and is continuously developing,
but the progress has been remarkable over the past
decade. With the advent of liberalization the best banking
industry had made a head start towards the best banking
practices at each interaction point of the supply chain.
Experts have also projected that India would emerge as
the third largest banking hub in the world by 2040. But in
the present changing business environment, the term
'risk' is evolved significantly in every business. Banks have
been making great advancements in terms of technology,
quality, quantity as well as stability such that they have
started to expand and diversify at a rapid rate. However,
such expansion brings these banks into the context of risk.
Risk is inherent in any walk of life in general and in
financial sectors in particular.
Indian banking sector has undergone a thorough change
and remarkable transformation during the last 17-18
years. The banking reforms implemented on the basis of
the blue print provided by Narasimhan committee and
other wide ranging supportive measures initiated and
implemented by Government of India and RBI have con-
tributed significantly to the enhancement of financial
strength intrinsic soundness resilience and operational ef-
ficiency of banks. Banks in India have been showing stron-
ger balance sheet footing with better asset quality in post
reform period.
The post-reform period has also witnessed the advent of
new players, product innovations and introduction of new
instruments and new approaches to aggressive marketing
of such new products. Banks presently operate in an in-
creasingly deregulated and market driven competitive of
operational flexibility. We are also aware that there has
been constant strengthening of financial supervision and
prudential regulation over banks in India. With re-in
forced strength and stronger financials Indian Banks are
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now capable of taking advantage of expanding business
opportunities both domestic and global availment of such
expanding opportunities particularly those arising out of
expanding financial inclusion as well as those available at
the bottom of the pyramid and new global opportunities
will facilitate further growth of banks with business diver-
sification.
2. Current status of Indian Banks
Banking in our country is already witnessing the sea
changes as the banking 6s / sector seeks new technology
and its applications. The best point is that the benefits are
beginning to reach the masses. Earlier this domain was
the preserve of very few organizations. Foreign banks with
heavy investments in technology started giving some "Out
of the world" customer services.
But, such services were available only to selected few- the
very large account holders. Then came the liberalization
and with it a multitude of private banks, a large segment
of the urban population now requires minimal time and
space for its banking needs.
Indian bank was formed by Annamalai and Ramaswami
Chettiar on 5th March 1907 with the name of Indian Bank
Limited, and it was commenced the banking operations
from 15th August 1907 as part of the Swadesi Movement
with its head office in Parry's Building, Parry Corner, Ma-
dras, India. Para Indian Bank is an Indian public-sector
bank providing financial services and located its head of-
fice in Chennai, Tamil Nadu, India. It has been generated
employment to 22,000 people with establishing 2,100
branches and it is one of the largest public sector banks in
India. It has opened its branches abroad of India first in
Colombo, Sri Lanka, Jaffna during the year 1932. The
Singapore branch was opened in 1941 and it has world-
wide 229 correspondent banks in 69 countries. Since 1969
the Government of India has possession of the bank, which
celebrated in 2007 its centenary.
Automatic Teller Machines, popularly known as ATMs are
the three alphabets that have changed the concept of
banking like nothing before. Instead of tellers handling
your own cash, today there are efficient machines that do
not talk but just dispense cash. Para under the Reserve
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