Npa Management
CHAPTER 1 INTRODUCTION
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Introduction 1.1 Banking in India:
Every country has to have a sound and effective banking system in order to have a healthy economy. The banking system of any country should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India and subsequently by 7 more banks. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging, money has become order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
The whole scenario can be explained by the following phases: 1. Foundation stage from 1850s, 1960s and the 1969; 2. Expansion stage mid1960's i.e. 1969 to 1984
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3. Consolidation stage from 1985 to 1990; and 4. Reforming stage from 1991onwards The whole of the stages can be again summed up into three phases –
1|Page
Introduction 1.1 Banking in India:
Every country has to have a sound and effective banking system in order to have a healthy economy. The banking system of any country should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India and subsequently by 7 more banks. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging, money has become order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
The whole scenario can be explained by the following phases: 1. Foundation stage from 1850s, 1960s and the 1969; 2. Expansion stage mid1960's i.e. 1969 to 1984
2|Page
3. Consolidation stage from 1985 to 1990; and 4. Reforming stage from 1991onwards The whole of the stages can be again summed up into three phases –