About the Book: Banking System in India: Reforms and Performance Evaluation
Prior to economic reforms initiated in early 1990s, the banking sector in India
suffered from lack of competition, low capital base, inefficiency, and high
intermediation costs. The banking industry - dominated by the public sector -
was subject to a high degree of financial repression, characterized by
administered interest rates and allocated credit. Reforms in Indias commercial
banking sector had two distinct phases. The first phase of reforms focused
mainly on enabling and strengthening measures. The second phase of reforms
placed greater emphasis on structural measures and improvement in standards of
disclosure and levels of transparency in