Biprojit Dey

DESIGN OF DISSERTATION 3.1 Review of Literature The future of Indian Banking represents a unique mixture of unlimited opportunities amidst insurmountable challenges. On one hand, we see the scenario represented by the rapid process of globalization presently taking shape bringing the community of nations in the world together, transcending geographical boundaries, in the sphere of trade and commerce, and even employment opportunities of individuals. All these indicate newly emerging opportunities for Indian Banking. But on the darker side we see the accumulated morass, brought out by three decades of controlled and regimented management of the banks in the past. It has siphoned profitability of the banks, accumulated bloated NPA and threatens Capital Adequacy of the Banks and their continued stability. In the nutshell the problem is how to shed the legacies of the past and adapt to the demands of the new age.

Bank-As per Section 5(c) of the Banking Regulation Act, 1949 a "Banking Company" means any company which transacts the business of banking in India. Any company which is engaged in the manufacture of goods or carries on any trade and which accepts the deposits of money from public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause." As per Section 5(b) of the Banking Regulation Act, 1949, "banking" means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. A Bank does most or all of the following: Dealing in Money-Bank is a financial institution which deals with other people's money i.e. money given by depositors. Individual / Firm / Company-A bank may be a person, firm or a company. A banking company means a company which is in the business of banking.

The future of Indian Banking represents a unique mixture of unlimited opportunities amidst insurmountable challenges. On the one hand we see the scenario represented by the rapid process of globalization presently taking shape bringing the community of nations in the world together, transcending geographical boundaries, in the sphere of trade and commerce, and even employment opportunities of individuals. All these indicate newly emerging opportunities for Indian Banking. But on the darker side we see the accumulated morass, brought out by three decades of controlled and regimented management of the banks in the past. It has siphoned profitability of the many banks, accumulated bloated NPA and threatens Capital Adequacy of the Banks and their continued stability. New Private Sector Banks in India can solve their problems only if they assert a spirit of self-initiative and self-reliance through developing their in-house expertise. They have to imbibe the banking philosophy inherent in deregulation NPA is a problem created by the Banks and they have to find the cause and the solution-how it was created and how the Banks are to overcome it. An attempt is made in this study the present situation and to arrive at a solution to solve this problem.

The future of Indian Banking represents a unique mixture of unlimited opportunities amidst insurmountable challenges. On the one hand we see the scenario represented by the rapid process of globalization presently taking shape bringing the community of nations in the world together, transcending geographical boundaries, in the sphere of trade and commerce, and even employment opportunities of individuals. All these indicate newly emerging opportunities for Indian Banking. But on the darker side we see the accumulated morass, brought out by three decades of controlled and regimented management of the banks in the past. It has siphoned profitability of the many banks, accumulated bloated NPA and threatens Capital Adequacy of the Banks and their continued stability. New Private Sector Banks in India can solve their problems only if they assert a spirit of self-initiative and self-reliance through developing their in-house expertise. They have to imbibe the banking philosophy inherent in deregulation NPA is a problem created by the Banks and they have to find the cause and the solution-how it was created and how the Banks are to overcome it. An attempt is made in this study the present situation and to arrive at a solution to solve this problem.