Trends and Growth of Banking Sector in India

Banks are the major segment of the financial sector in India, Reforms measures are primarily aimed at improving the performance of the Banking sector. Liberalization and Globalization in banks provided a new perspective to reforms in Indian financial sector. These forces have transformed the structure of financial sector. Banks have been undergoing major changes and transformation after the post liberalization period as it is evident from the various efficiency parameters including Total Deposits, Number of Employees, total Income, Total Asset, Net Interest Margin, Number of Branches, Priority sector Advances to Total Advances and Total Advances. In the present study, an attempt has been made to compare the performance of Nationalized Banks, State Bank Group, Public sector bank, old private sector banks, New private sector bank group and foreign bank group, for this purpose CAGR were computed. The general growth of performance of the commercial banks can be analyzed more meaningfully and objectively for a given period in time by comparing their growth patterns over the period.