Indian Banking-Scaling New Heights in Emerging New Competition

Indian banking industry has transformed in recent years due to the globalization market which has resulted in fierce competition. This new competitive environment has resulted in new challenges for the Indian banks especially for public sector banks to retain their share. The present paper is mainly concerned with the analysis of factors that influence the performance of banks. The paper examined that structure of Indian banking in terms of share of individual banks in total assets of all scheduled commercial banks and further examined the factors responsible for the changes. The paper concludes that the public sector banks have dominant position in their share in total assets of all scheduled commercial banks. Among all the factors under study, profitability have recorded deterioration in all the bank groups during the study period as public sector banks witnessed the least profitability along with the highest costs and decreasing spread even succeeded to bring down their non-performing assets and intermediation cost.