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An Analysis of Economic Performance and Issues of Indian Banking Sector

Vol 7 , Issue 2 , July - December 2020 | Pages: 121-135 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. * Mili Kar, Assistant Professor, Commerce & Finance, Amity University, Kolkata, West Bengal, India (

This paper intends to discuss the current trends of Indian banking sector and to identify emerging issues, challenges and opportunities for future growth of banking sector. In spite of effective and impressive growth in banking sector operation during the post-liberalization period, Indian banks, in recent years, are facing problems in managing stressed assets. The issues of rising NPAs, persistent asset quality deterioration, liquidity management, and stressed banks’ balance sheets remain as the key priorities for the banking sector nowadays along with macroeconomic issues like conformity of Basel III norm, IFRS-converged Indian Accounting Standards, financial innovation etc. The data period considered in this study is 2009-2018. The profitability analysis of the study confirms that Indian banking sector has shown inconsistent performance during the last ten years period.  The study observed that future growth of banking sector is driven by rising rural income, growing demand for housing and personal loan, the move of financial inclusion and priority sector lending.


Banking sector; Non-performing assets (NPAs); Asset quality; Economic performance.

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