Home   >   CSC-OpenAccess Library   >    Manuscript Information
Indian Banking Industry: Challenges and Opportunities
Krishn A. Goyal, Vijay Joshi
Pages - 18 - 28     |    Revised - 15-01-2012     |    Published - 21-02-2012
Volume - 3   Issue - 1    |    Publication Date - February 2012  Table of Contents
MORE INFORMATION
KEYWORDS
Indian banking , Challenges opportunities, rural market, risk exposure
ABSTRACT
Abstract: The banking industry in India has a huge canvas of history, which covers the traditional banking practices from the time of Britishers to the reforms period, nationalization to privatization of banks and now increasing numbers of foreign banks in India. Therefore, Banking in India has been through a long journey. Banking industry in India has also achieved a new height with the changing times. The use of technology has brought a revolution in the working style of the banks. Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the people on the institution remain the same. The majority of the banks are still successful in keeping with the confidence of the shareholders as well as other stakeholders. However, with the changing dynamics of banking business brings new kind of risk exposure. In this paper an attempt has been made to identify the general sentiments, challenges and opportunities for the Indian Banking Industry. This article is divided in three parts. First part includes the introduction and general scenario of Indian banking industry. The second part discusses the various challenges and opportunities faced by Indian banking industry. Third part concludes that urgent emphasis is required on the Indian banking product and marketing strategies in order to get sustainable competitive edge over the intense competition from national and global banks. This article is a small seed to existing branch of knowledge in banking industry and is useful for bankers, strategist, policy makers and researchers. Key words: Rural Market, Risk Management, Global Banking, Employee and Customer Retention.
CITED BY (81)  
1 Hossain, A., Humayun K. Chowdhury, M., Hasan, S., Shamsuzzaman, M., Fahim, A. Y., & Yusuf H. Khan, M. (2020). Banking service in Bangladesh: The impact of service marketing mix on purchase intention of university students. Strategic Change, 29(3), 363-374.
2 Fathima, J. S. (2020). Challenge Management of Banking Services–with Special Reference to Virtual Banking Service Challenges. Management, 7(3), 57-66.
3 Jain, A., & Sarupria, A. (2020) Security & Privacy Model for Analyzing the Consumer Awareness with regards to Electronic Banking Services in Udaipur City. International Journal of New Technology and Research, Volume-6, Issue-6.
4 Srivastava, S., & Bajpai, L. (2020). Linking conservation of resource perspective to personal growth initiative and intention to leave: role of mediating variables. Personnel Review.
5 Ghadamyari, M., & Eslami Mofid Abadi, H. (2020). The Effects of Corporate Governance on Banks’ Performance (Evidence from of Indian Banks). International Economics Studies, 50(2), 17-28.
6 Opati, T. Z. (2020). Employing Artificial Intelligence and Algorithms in the Digital Lending Industry: Measuring and Managing Risky Consumer Behaviour. In Impact of Mobile Payment Applications and Transfers on Business (pp. 43-70). IGI Global.
7 Peshori, K., & Pimple, S. (2020). Rural Banking in Digital Era–Current Scenario and Challenges. Studies in Indian Place Names, 40(75), 227-231.
8 Meghani, K. (2020). Identifying Issues and Measuring Financial Risks: A Case Study of Public Sector Banks in India.
9 ANBUOLI, D., & SAKTHIVEL, D. (2020). IMPACT OF SERVICE QUALITY ON CUSTOMER LOYALTY IN COMMERCIAL BANKS.
10 Wani, A. A., Haque, S. I., & Raina, S. H. (2019). Impact of Macroeconomic and Bank-Specific Indicators on Net Interest Margin: An Empirical Analysis. In Understanding the Role of Business Analytics (pp. 45-64). Springer, Singapore.
11 Sahu, A. P. P. J. (2019). A COMPARATIVE STUDY OF PERFORMANCE OF INDIAN BANKING SECTOR DURING SUB-PRIME CRISIS. Journal Current Science, 20(06).
12 Garach, J. B. (2019). The Firm-Specific Determinants of Capital Structure in Public Sector and Private Sector Banks in India (Masters thesis, Faculty of Commerce).
13 Khandelwal, M. N. (2019). Changing Dynamics of Indian Banks. International Journal of Research in Business Studies, Vol. 4 (1).
14 Rath, S., & Samal, G. P. (2019). A Study on Impact of Merger and Acquisition on the Performance of Facebook.
15 Mawlawi, A., El Fawal, A., & Maaliky, B. (2019). How Employees’ Performance in The Lebanese Banking Sector is impacted by Innovative Leaders’ Characteristics. World, 10(1).
16 Siyambalapitiya, P., & Sachitra, V. (2019). Role of Occupational Stress and Organizational Stress towards Job Satisfaction A Study Based on Banking Sector Employees in Sri Lanka.
17 Shaik, S., Kumar, P. R., & Kumar, A. D. V. (2019). An Impact of Mergers & Takeovers of Public Sector Banks in Enhancing Customer Satisfaction.
18 Gupta, S. K. CURRENT STATE OF BANKING SECTOR IN INDIA.
19 Ashoka, M. L., Rakesh, T. S., & Madhushree, S. (2019). Digital Banking Services in Rural India: A Customer Perspective. In Dynamic Perspectives on Globalization and Sustainable Business in Asia (pp. 56-72). IGI Global.
20 Pandey, S. K., Sharma, P., & Jain, R. (2019). Ethics in Indian Banking Industry: Issues and Challenges.
21 Choudhury, A., Dutta, A., & Dutta, S. (2019). Employee Happiness, Employee Engagement and Organisational Commitment: A Literature Review. ITIHAS-The Journal of Indian Management, 9(1).
22 Tandon, R., Arrawatia, D., & Amit, M. (2019). Swot Evaluation of Training Framework: A Review of the Processes, Strong Points and Roadblocks of Training and Development for the Indian Private Banks. Journal of Management (JOM), 6(2), 36-43.
23 Prasad, B. R., & Sreekanth, P. V. (2019). Indian Banking Industry: Issues And Challenges. Journal of the Gujarat Research Society, 21(17), 1128-1137.
24 Aziz, F. A., & Raharso, S. (2019, August). Pengaruh Work Engagement Terhadap Employee Service Innovative Behavior: Kajian Empiris Di Minimarket. In Prosiding Industrial Research Workshop and National Seminar (Vol. 10, No. 1, pp. 777-788).
25 Klepacki, J. (2019). The state as an active creator of the banking sector. Entrepreneurship and Management, 20 (1.1), 89-105.
26 Shekhawat, A., & Arrawatia, M. A. (2019). E-BANKING SERVICES PROVIDED BY PUBLIC AND PRIVATE SECTOR BANKS IN INDIA: A REVIEW. Journal of the Gujarat Research Society, 21(6), 1158-1175.
27 Beebeejaun, A. FORMAL RECOGNITION TO ADVANCE PRICING AGREEMENTS IN MAURITIUS: A COMPARATIVE STUDY. International Journal of Law, Humanities & Social Science V3, I4, pp 34-52.
28 Joshi, M., Kansal, M., & Sharma, S. (2018). Awareness of intellectual capital among bank executives in India: a survey. International Journal of Accounting & Information Management.
29 Kapoor, S. (2018). A study on analyzing the trend of NPA level in public sector banks. ZENITH International Journal of Multidisciplinary Research, 8(8), 192-200.
30 Kumar, S. V. BANKING SECTOR IN INDIA–A REVIEW.
31 Hamza, E. A. (2018). The Impact of Group Motivational Interview on Motivation to Change among Adolescent Drug Abusers. THE INTERNATIONAL JOURNAL OF HUMANITIES & SOCIAL STUDIES.Vol6, Issue 3.
32 Jagotra, S. (2018). Identifying Financial and Operating Issues and Measuring Systematic and Unsystematic Risks: A Study of Indian Banking Sector. International Journal of Banking, Risk and Insurance, 6(2), 46.
33 Wani, A. A., Haque, S. I., & Raina, S. H. (2018). Impact of Macroeconomic and Bank-Specific Indicators on Net. Understanding the Role of Business Analytics: Some Applications, 45.
34 PEDNEKAR, S. S. (2018). STUDY ON IMPACT OF GLOBALISATION ON BANKING SERVICES WITH SPECIAL REFERENCE TO PUBLIC SECTOR BANKS IN MUMBAI REGION.
35 Sarupria, A. (2018). A Study on Consumer Awareness with Regard to Security and Privacy in Electronic Banking Services in Udaipur City.
36 Vimaladevi, R., & Meenakshi, A. THE STUDY OF BANKING SECTOR’S CONTRIBUTIONS TO ACHIEVE 5 TRILLION ECONOMY IN INDIA. ADALYA JOURNAL.
37 Abate, J., Schaefer, T., & Pavone, T. (2018). Understanding generational identity, job burnout, job satisfaction, job tenure and turnover intention. Journal of Organizational Culture, Communications and Conflict, 22(1), 1-12.
38 Shanmugan, K., & Prakash, B. (2018). DEPOSITS AND CREDITS IN THE INDIAN COMMERCIAL BANKING SECTOR: AGGREGATE AND REGIONAL LEVELS OF ANALYSIS.
39 Jindal, S. (2018). Financial Performance of the Banking Sector in India: a Case Study of Punjab National Bank (Doctoral dissertation, Aligarh Muslim University).
40 Rai, A., Ghosh, P., Chauhan, R., & Mehta, N. K. (2017). Influence of job characteristics on engagement: does support at work act as moderator?. International Journal of Sociology and Social Policy.
41 Ashoka, M. L., Rakesh, T. S., & Madhushree, S. (2017). Consumer perception and satisfaction towards internet banking and mobile banking with reference to nationalized banks in rural India. International Journal of Asian Business and Information Management (IJABIM), 8(4), 29-40.
42 Al-Shawabkeh, A., & Kanungo, R. (2017). Credit risk estimate using internal explicit knowledge. Investment management and financial innovations, (14,? 1), 55-66.
43 Gupta, J. (2017). Indian Literature Review on Financial Inclusion. Asian Journal of Research in Banking and Finance, 7(10), 60-71.
44 VERMA, M. A., & Bagga, D. R. (2017). WORK-LIFE BALANCE OFPUBLIC SECTOR BANKEMPLOYEES–A FACTOR ANALYSIS.
45 Kumar, S. V. (2017). Banking Sector in India: An Overview. FINANCIAL SECTOR IN INDIA.
46 Birt, J., Joshi, M., & Kend, M. (2017). Segment reporting in a developing economy: the Indian banking sector. Asian Review of Accounting.
47 Moorthi, Y. L. R., & Mohan, B. C. (2017). Brand value proposition for bank customers in India. International Journal of Bank Marketing.
48 Murugan, L. V., & Kumar, P. P. Share Repurchase: Consequences in Indian Banking Sector.
49 Garg, S., & Dhar, R. (2017). Employee service innovative behavior. International Journal of Manpower.
50 Deka, D. (2016). Ethical Issues of Banks towards the environment: A study on Green Practices of State Bank of India in Assam. In Annual International Seminar Proceedings (pp. 1-19).
51 Abate, J. J. (2016). Relationship between generational identity, burnout, job satisfaction, job tenure, and turnover intention.
52 Banks, T. S. P. S. (2016). International Journal of Informative & Futuristic Research ISSN: 2347-1697.
53 Keerthy, T. R., & Biju, M. K. (2016). COMPETENCY GAP ANALYSIS AMONG THE EMPLOYEES OF PRIVATE SECTOR BANKS-A STUDY WITH SPECIAL REFERENCE TO ERNAKULAM DISTRICT. Consortia, 3(1), 54.
54 Srivastava, M., & Luthia, M. (2016). Examining the influence of usage of sales technology on relational outcomes through customer oriented behaviour. EXCEL International Journal of Multidisciplinary Management Studies, 6(7), 9-24.
55 Kumari, R. (2016). Impact Evaluation of Privatization in Banking Segment in India and Associated Factors.
56 Kushwaha, G. S., & Agrawal, S. R. (2015). An Indian customer surrounding 7P? s of service marketing. Journal of Retailing and consumer services, 22, 85-95.
57 Dayanand, M. (2015). A comparative study of Compensation & Benefits packages satisfaction of Indian public versus private banks employees. IJAR, 1(3), 117-128.
58 KUMARI, D. BANKING SECTOR IN INDIA: PERSPECTIVES AND PROSPECTS.
59 Patil, S. S. S., & Patil, R. M. Study on Customer satisfaction Index of various nationalized banks in comparison with private banks.
60 Irisappane, A., & Sundar, V. (2015). Performance Evaluation: Banking Funds. SCMS Journal of Indian Management, 12(2), 102.
61 Pan, S. (2015). An overview of Indian banking industry. International Journal of Management and Social Science Research, 4(5), 67-71.
62 Verma, S. (2015). Job Anxiety Among Bank Employees. Journal of Psychosocial Research, 10(1).
63 Sharma, R. (2015). HRD Policies of Regional Rural Banks in Haryana. The International Journal of Business & Management, 3(3), 261.
64 Sharma, R. (2015). Financial analysis of regional rural banks in Haryana. International Journal of Education and Management Studies, 5(1), 48.
65 Manikyam, K. R. (2014). Indian banking sector–challenges and opportunities. IOSR Journal of Business and Management, 16(2), 52-61.
66 Mishra, P. S., & Dehuri, S. (2014). Potential indicators based neural networks for cash forecasting of an ATM. International Journal of Information Systems and Social Change (IJISSC), 5(4), 41-57.
67 Kaur, J. (2014). Emotional intelligence: predicting work role innovation in banking sector. International Journal of Organizational Behaviour & Management Perspectives, 3(1), 778.
68 Yadav, P. K. (2014). Performance Appraisal in Service Sector-A Comparative Study of Public and Private Sector Banks. Pacific Business Review International, 7(1), 115-120.
69 Venkatesh, J., Shivaranjani, G., Thenmozhi, S., Balasubramanie, P., & Gandhi, S. M. (2014). The Modern Drift: Significance of Adversity Quotient and Challenges faced by the Indian Banking Sector. International Research Journal of Business Management. Volume 7, Issue 8.
70 HimaBindu, T., & Meena, G. L. (2014). Financial Services in India-An Overview. Asia Pacific Journal of Research Vol: I Issue XIV.
71 Hameed, S. A., & Akhtar, N. (2014). The Impact of Mergers and Acquisitions on Firms Performance: An Event Study Approach. NUML International Journal of Business & Management, 9(1), 20-33.
72 Das, S. K. (2013). Social and innovative banking strategies for sustainable banking in India. International Journal of Economics, Finance and Management, 2(2).
73 Rashidi, A. A. (2013). Retention Issues in Banking Industry of Pakistan: A Case Study of Habib Metro and Soneri Bank. Journal of Independent Studies & Research: Management & Social Sciences & Economics, 11(1).
74 Kumari, R. (2013). Indian Banking Industry: Challenges and Opportunities. International Journal of Research in Economics & Social Sciences, 3(10), 33-41.
75 Jain, Y., & Soni, K. (2013). Distinctive Marketing Challenges of Banking Services: Indian Perspective. International Journal of Social Science & Management, 13.
76 Kumar, T. (2013). New basel capital accord & performance of Indian Bank: The case in India. ZENITH International Journal of Multidisciplinary Research, 3(12), 105-109.
77 Kumar, K. P., & Archana, M. (2013). Indian banks-Searching for new frontiers of growth. SAARJ Journal on Banking & Insurance Research, 2(2), 8-16.
78 Kapoor, V., Adhikari, K., & Shahani, R. (2013). EVALUATING THE PERFORMANCE CHARACTERISTICS OF SELECT BANK FUNDS USING POPULAR AND ADVANCED MEASUREMENT TOOLS. International Journal of Management & Behavioural Sciences, Volume 5.
79 Nath, O., & Fulzele, T. U. (2013). Preparing Graduates for the Indian Banking Industry. In Evolving Corporate Education Strategies for Developing Countries: The Role of Universities (pp. 247-262). IGI Global.
80 Faisal, M. (2013). Islamic banking in India: challenges and opportunities (Doctoral dissertation, Aligarh Muslim University).
81 Tarabieh, S. M. A., & Al-alak, B. A. (2012). CUSTOMER ORIENTATION, SUPPLEMENTARY SERVICES, DIFFERENTIATION ADVANTAGE, AND ORGANIZATIONAL PERFORAMCE IN THE BANKING INDUSTRY. In AFBE 2012 CONFERENCE PAPERS (UNITEN) (p. 509).
1 Google Scholar 
2 CiteSeerX 
3 refSeek 
4 Scribd 
5 SlideShare 
6 PdfSR 
Al-Tamimi, H. A. H and Al-Mazrooei, F. M. “Banks' risk management: A comparison study of UAE national and foreign banks”. Journal of Risk Finance, 8(4): 394-409, 2007.
Bartel, A. P. “Human Resource Management and Organizational Performance: Evidence from Retail Banking”. Industrial and Labor Relations Review, 57(2): 181-203, 2004.
Dev, S. M. “Financial Inclusion: Issues and Challenges”. Economic & Political Weekly, 41(41): 2006.
Fernando, A. C. “Business Environment”. Noida: Dorling Kindersley (India) Pvt. Ltd. (2011), pp. 549-553.
Gelade, G. A. and Ivery, M. “The Impact of Human Resource Management and Work Climate on Organizational Performance”. Personnel Psychology, 56(2): 383-404, 2003.
Goyal, K. A. and Joshi, V. “Mergers in Banking Industry of India: Some Emerging Issues”. Asian Journal of Business and Management Sciences, 1(2): 157-165, 2011a.
Sensarma, R. and Jayadev, “Are bank stocks sensitive to risk management?” Journal of Risk Finance, 10(1): 7-22, M. 2009.
Shrieves, R. E. “The relationship between risk and capital in commercial banks”. Journal of Banking & Finance, 16(2): 439–457, 1992.
Wolgast, M. “M&As in the financial industry: A matter of concern for bank supervisors?” Journal of Financial Regulation and Compliance, 9(3): 225-236, 2001.
Zhao, T., Casu, B. and Ferrari, A. “Deregulation and Productivity Growth: A Study of The Indian Commercial Banking Industry”. International Journal of Business Performance Management, 10(4): 318-343, 2008.
Dr. Krishn A. Goyal
Bhupal Nobles' P.G. College - India
kagoyala@gmail.com
Mr. Vijay Joshi
- India