We have witnessed a rapid change in the phenomenon of Indian banking; In short in last decade our banks changed tiny to huge and also changed its ways of working from orthodox to modern. Our banks are expending and developing very rapidly. And being in a developing stage, it automatically invites lots of challenges. Lets point out the challenges and their solution for the economical growth of Indian Banking industry. The challenges we have to face are many; but those need to be solved first are-
· Credit Delivery System:
this is what banks depend a lot on to yield profit, as bank tends to earn as much as fast and expended this system is, but it is rather slow, NBFC with the fast and easy credit delivery are diverting customers from banks to them and Infrastructure financing Institutions are enjoying the high profile landing in infrastructure projects with their better asset-liability management. If we have a look on the Credit Deposit Ratio it seems as splendid as 78.1% for March 2012. Though deposit declined to 13.4% in the same time from 17% in March 2011, which raises an alarm. RBI’s stick monetary policy and frequent changes in RR, RRR and CRR also forbidding banks to deliver the adequate amount of credit. Moreover the bed circles of global economy are also adding insult to injury.
Overall
we cannot afford any abbreviation to a sound Credit Delivery System, The points
to be concerned about-
1. 1)
Make it easier for the customer to avail
advances from banks so that the credit and profit may increase and we also have to take care
of deposit part.
2. 2)
We need to find a way to manage and to reduce
the risk factor in infrastructure project landing; asset and liability mismatch
can be handled with the adequate support from government and International
financial institutions like IMF, World Bank and Asian Development bank.
