Finance Specialization Project on

“Study of Evolution of Banking Sector in India and the

Risks Faced by Banks”

Submitted in partial fulfillment for the award of the degree of

Master of management studies

(Under University of Mumbai)

Submitted by

Vatsal Nitin Sheth

(Roll No: 49)

Under the guidance of

Dr. Kaustubh Sontakke

2021-2023

SIES College of Management Studies

i
 CERTIFICATE

This is to certify that the project titled “Study of Evolution of Banking Sector in
India and the Risks Faced by Banks” is completed by Mr. Vatsal Nitin Sheth
during the IV semester, in partial fulfillment of the Master’s degree in
management studies recognized by the University of Mumbai for the academic
year 2021-2023 through SIES College of Management Studies.

This project work is original and not submitted earlier for the award of any degree
/diploma or any associate of any other University/Institution.

Name: Dr. Kaustubh Sontakke

Date: _____________ (Signature of the guide)

ii
 DECLARATION

I hereby declare that this project report submitted by me to SIES College of

Management Studies is a bonafide work undertaken by me and it is not submitted
to any other university or institution for the award of any
degree/diploma/certificate or published at any time before.

Name: Vatsal Nitin Sheth

Roll No: 49 Signature of the student

iii
 Acknowledgments

I would like to express my profound gratitude to all those who have been instrumental in the
preparation of my project report including my family and friends. I am immensely grateful to
Dr. Kaustubh Sontakke for her constant support, suggestions, and feedback on my project work.
She has proved to be extremely valuable and has allowed me to constantly improve myself and
my work. Her encouragement has always boosted my confidence.

Signature

Vatsal Nitin Sheth

Date:

iv
TABLE OF CONTENTS

Chapter
Content Page No
No.
Executive Summary vii
1 Introduction 1
1.1 Evolution Of The Banking System In INDIA 1
1.2 Meaning Of Bank 2
1.3 Necessity or Importance of the Study 3
2 Review of Literature 4
2.1 Research Design Used in the Study 7
2.2 The objective of the Study 7
3 Early History of the Indian Banking Sector 8
3.1 History of Banking in India 8
3.2 Indian Banking System 11
3.3 Causes for India's Nationalization of Banks 14
3.4 Types of Banks in India 15
Role of Information Technology in the
4 18
Development of the Indian Banking Sector
4.1 An Overview of Indian Bank’s Performance 21
4.2 Indicators of Change 23
Possibilities for Development & Challenges Faced
4.3 24
by Indian Banks
4.4 Exposure to Indian Banks 25
4.5 Upcoming Banking Properties in India 25
5 Risk 28
5.1 Why do the risks for banks matter? 28
5.2 Types of Risks Banks Face 29

v
Chapter
Content Page No
No.
5.3 Non-Performing Assets 32
5.3.1 Impact of NPA on Bank's Portfolio 32
5.4 Risk Mitigation 35
5.5 Challenges banks face while Managing Risk 38
6 Conclusion 39
7 References 41
8 Appendices 42

vi
 EXECUTIVE SUMMARY

Finance and banking are the backbone of trade, industry, and business. Today, the financial
business fills in as the groundwork of contemporary business. Any country's capacity to foster
lies vigorously in its financial area. A financial institution that offers loans, deposits, and other
services is known as a bank. It lends money to people who need it and takes deposits from
people who want to save money. Banking is one of the most fundamental aspects of life. In
today's fast-paced lifestyle, people may not be able to make the necessary changes if the
appropriate bank network is not established. Nationalized banks rule India's financial
framework. The exhibition of the financial area is more firmly connected to the economy than
maybe that of some other area. The development of the Indian economy is assessed to
fundamentally have dialed back. India's banking sector performed poorly in FY12 due to the
economic slowdown and global developments, resulting in moderate business growth. Banks
have been forced to consolidate their operations, refocus, and work to improve their balance
sheets as a result. The researcher's goal in this case, in this case, gate the banking sector and
bank performance in India. Also, the risks faced by the banks and the way they can be mitigated
are given below.

vii
 Chapter 1: Introduction

1.1 Evolution Of the Banking System In INDIA

Banks have benefited in numerous ways by implementing more recent technologies. E-

banking has fundamentally decreased costs and helped with producing pay in various ways.
As indicated by the latest information, the expense of a bank exchange while utilizing
branch banking is supposed to be between Rs. 70 and Rs. 75, in contrast to Rs. 15 and Rs.
16, Rs., when using an ATM 2 or less while utilizing internet banking, and Rs. less than
one when utilizing mobile banking. Additionally, the number of customers has increased
due to the ease of "Anywhere Banking." Human errors have diminished because of
digitization.

Fig. 1

1
1.2 Meaning of Bank

The performance of the banking industry is closely linked to the economy's health, perhaps
more so than any other industry. The Indian economy's growth is expected to significantly slow
down, according to estimates. The banking sector's performance in India in FY12 was impacted
by the global financial crisis and other changes, which led to a slight increase in business.
Banks have been forced to reorganize, set new goals, and try to improve their balance sheets
as a result. In this case, the researcher wants to investigate the expansion of Indian banks and
the country's banking sector.

By law, banks are required to pay back deposits and borrowings as soon as they are due. Since
these sums have already been turned into assets, banks must always make sure that all of the
assets are releasable—that is, that they are liquid and that they can be fully recovered to cover
liabilities when they are needed. Profit is the primary goal of lending money or investing
money. A non-performing asset is one in which the expected or accrued income from an asset
ceases, with the possibility of not recovering even the principal amount invested in the asset.
Non-performing assets are those in which no income is earned on advances.

Fig. 2

2
1.3 Necessity or Importance of the Study

People and moneylenders handled all financial transactions before the establishment of banks.
Loan fees were generally high around then. Again, there was no guarantee for public savings,
and loans were not uniform. The newly established organized banking sector, which was
established to address these issues, was completely regulated by the government. The organized
banking industry is a sector of the financial system that lends loans, receives deposits, and
provides other services to its customers.

The bank's need and importance are shown by the accompanying tasks:

 To provide security to consumers' savings.

 To deal with the progression of credit and cash Support quick and viable reserve funds
development to help public confidence in the activity of the monetary framework.
 To stop a small number of individuals and organizations from holding all of the
financial power.
 To establish consistent standards and guidelines (such as repayment terms and interest
rates) for a wide range of customers.

The method used to conduct the study must be carefully considered because it has a
direct impact on the sufficiency, correctness, and dependability of the results. It stands
to reason that the researcher's research methodology should be specific when
conducting the study. It tends to be seen as a science that concentrates on how logical
examination is led. As a result, the research methodology discusses the various research
methods and the reasons behind each one within the context of the study. An
exploration strategy is a cycle for purposefully inspecting and settling research issues.
If a researcher wants to label a study as good, he or she must explicitly state the
research's methodology. Before claiming that his study is good, a researcher must
explicitly disclose the methodology used for the research in order more fore to
determine whether or not the methodology was sound.

3
 Chapter 2. Review Of Literature

Artificial intelligence (AI), according to a study by Vijai, C. (2019), is a development that The
Indian financial industry makes use of artificial intelligence. The banking industry is becoming
one of the early users of Artificial Intelligence. Banks are experimenting with and adopting
technology in a variety of ways. Artificial intelligence is becoming more and smarter by the
day. In this article, we will cover how Artificial Intelligence is applied in the Indian banking
sector, the benefits, and the challenges that India's Artificial Intelligence faces. Artificial
intelligence development and the various ways in which it might improve the operations of the
Indian banking industry.

(Manish Tanwar, 11-8-2011)

The paper focuses on the use of technology in the banking sector, which is a sign of great
evolution in the sector. To compete with other companies, all banks use information technology
as a strategic vehicle. There is no noticeable difference in the rates of adoption of financial
technologies by consumers of different private banks. The study also demonstrates how
banking technology contributes to increased customer happiness, customer loyalty, and
improved bank growth and performance. Analysed how Indian consumers view using
technology for elements including comfort, and an accurate record of transferred transactions
that affect consumers' choice of banking y. It is also examined for several problems, including
slow transfer rates, professional disappointment, fraud, and consumer ignorance that obstructs
appropriation. The results show that statistical factors like sex, age, aptitude, and income have
a significant impact on how well-received financial innovation is.

(Bhatt, April 2020)

The paper focused on the evolution of the banking sector and its Challenges. One of the traits
of a mature economy is an efficient, well-organized, and developed financial system. A strong
banking system boosts economic efficiency by mobilizing savings and channeling them toward
investments that will yield higher returns. Three distinct periods may be identified in the
development of the Indian banking industry, with the first starting with the establishment of the

4
nation's first bank, the "Bank of Hindustan," and ending with the passing of the Banking
Regulation Act of 1949. The second phase of the Indian banking industry was defined by the
nationalization of banks in 1969, and the third phase is referred to as the developments that
followed.

The paper examines the current state of the economy's scheduled commercial banks by
identifying the biggest public sector and private sector banks by market capitalization,
analyzing the number of branches the largest public sector and private sector banks have, and
examining the ATM services the banks offer to their customers nationwide. The current study
then investigates the credit deposit ratio, non-performing assets, and their impact on the
profitability of public sector banks to determine the state of the Indian banking sector. Public
sector banks had a credit deposit ratio of 69.83% in 2018–19 compared to a credit deposit ratio
of 88.26% for private sector banks, a significantly higher credit deposit ratio than the private
sector banks. (G.S. POPLI, JULY 2012)

(LAVANYA, February 2023)

This paper focuses on the center of trade, commerce, and industry in finance and banking. In
today's world, banking sectors are critical to a country's economy. A bank offers services such
as receiving deposits, lending loans, and other similar services. Deposits are made by those
who have more money to save, while loans are made available to those in need of funds.
Banking is one of the most vital and fundamental aspects of human life. As a result, because it
is related to the client's money, the banking system has some significant tasks in the
authentication and validation of customer accounts. The purpose of this article is to present the
evolution of India's banking system as well as the benefits of the new banking system.

5
(G.S. POPLI, JULY 2012)
This study focuses on the changes and shifts that are predicted in the Indian banking industry,
as well as the opportunities and difficulties that lie ahead, as well as the role of technological
innovation as a change agent in the next few years. It makes a modest attempt to provide a
concise review of significant banking developments. An effort has been made to depict the
many phases and changes experienced in the Indian Banking System, as well as an outlook on
the future. Financial sector reforms have transformed the Indian banking system into a highly
regulated and organized one. Market trends, combined with liberalization and globalization,
have resulted in a far faster rate of transformation of banks, with technology acting as a catalyst.
PSUs, Private Banks, Regional Rural Banks, Foreign Banks, Cooperative Banks, and a variety
of other entities make up the Indian Financial System. Customers no longer have to wait in
long lines to conduct transactions at commercial banks in India.

6
2.1 Research Design Used in the Study

This study employs a descriptive research strategy to minimize bias and maximize data
reliability. A spellbinding report depends on earlier information about the subject, yet an
examination study has an extremely clear objective. The researcher had to use facts and
information that was already available through financial statements from previous years and
examine them to critically evaluate the available material. Descriptive research is therefore the
method of choice for conducting research. The study was used to decide what kind of data
should be gathered and how to do it. Secondary Data is mainly used to avail data.

2.2 OBJECTIVE OF THE STUDY

1. To study the Indian banking sector and the Evolution of the Indian banking industry

2. To study the evolution of Digitalization in the Indian Banking sector.

3. To know about the progress and scope of Digital Banking in India
4. To understand the evolution of the Indian banking industry through different phases
In its simplest form, a bank accepts deposits from people and businesses with the assurance
that the money can be withdrawn whenever the depositor desires (though sometimes with a
penalty for early withdrawal). The bank may also pay interest on the depositor's money
depending on the type of account.
5. The bank then extends loans to other people and companies using the money it has on deposit
in exchange for interest payments from the borrowers. The distinction between the lower
interest rate that banks pay depositors for the use of their funds and the higher interest rate that
they charge borrowers is where banks generate their profit.
6. To understand the risks faced by banks and how they mitigate those risks.

7
 Chapter 3: Early History of the Indian Banking Sector

3.1 HISTORY OF BANKING IN INDIA

During the Maurya dynasty, which lasted from 321 to 185 BC, ancient India used an instrument
known as an adesha, which is equivalent to the modern meaning of a bill of exchange. It was a
directive to a banker asking him to transfer the note's funds to a third party. During the Buddhist
era, these tools were used a lot. Letters of credit were shared by businesspeople in big cities.

Trade guilds were like banks in that they took deposits and gave loans out. The bigger
sanctuaries worked as banks, while in the south, town networks gave advances to laborers to
financial turn of events. Like the Sethi, whose name in a real sense means "boss," there were
various prepared brokers and moneylenders.

The Advancement of Banking in India 70 contains data on the world’s historical underpinnings.

The Sanskrit word "rpya," which also means "formed," comes from the word "rupa," which
means silver. stamped; imprinted; currency." In 1542, Sher Shah played an important role in
the standardization of the rupee.

The English traders who arrived in India in the 17th century were unable to effectively utilize
the native bankers because of their lack of language skills and lack of experience with European
trade. As a direct consequence of this, the English Agency Houses in Bombay and Calcutta
began to manage banking transactions in addition to their commercial operations.

India saw the beginning of banking in the latter half of the 18th century. The General Bank of
India, established in 1786, and the Bank of Hindustan, established in 1790, were the initial two
banks; Both have ceased operations. The oldest bank still in operation in India is the State Bank
of India, which began as the Bank of Calcutta in June 1806 and almost immediately changed
its name to the Bank of Bengal. The other two presidential banks, the Bank of Bombay and the
Bank of Madras were established by characters from the British East India Company. One of
the three presidential banks was located here.

8
The first Indian-owned bank was Allahabad Bank, which opened its doors in 1865. However,
there were scarcely any banks in India in the cutting-edge sense toward the finish of the
eighteenth hundred years. The Confederate States' stock of cotton to Lancashire was stopped
by the American Nationwide conflict. Banks were made by advertisers to subsidize the
exchange of Indian cotton. The vast majority of the banks laid out in India during that time
fizzled in light of their critical obligation to speculative organizations. As a result of their
financial losses, depositors lost interest in banking. Up until the beginning of the 20th century,
banking in India was exclusively the domain of Europeans.

Foreign banks also began to emerge in the 1860s, particularly in Calcutta. In 1860, a Comptoir
d'Escompte de Paris branch was established in Calcutta, and in 1862, another one was
established in Bombay. During the time, Pondicherry was a French province. Calcutta became
India's busiest trading port and a major financial center in large part because of trade with the
British Empire.

The banking industry in India was plagued by a lack of competition, a low capital base,
inefficiency, and high intermediation costs before the implementation of economic reforms at
the beginning of the 1990s. The financial business - overwhelmed by the public area - was
dependent upon a serious level of monetary constraint, portrayed by controlled loan fees and
distributed credit. There were two distinct phases to the commercial banking sector reforms in
India. The first phase of reforms primarily focused on strengthening and enabling measures.
The second period of changes put more prominent accentuation on underlying measures and
improvement in guidelines of divulgence and levels of straightforwardness to adjust India's
norms to globally accepted procedures.

The largest and oldest bank still in operation is the State Bank of India (SBI). It was laid out
and placed into activity as the Bank of Calcutta in June 1806. In 1809, it was known as the
Bank of Bengal. The Bank of Bombay and the Bank of Madras, both laid out by official states
in 1840 and 1843, separately, were the other two banks. In 1921, the three banks were combined
to form the Imperial Bank of India. Following India's independence in 1955, the bank changed
its name to the State Bank of India. The presidency banks and their predecessors had been

9
operating as quasi-central banks for a considerable amount of time before the establishment of
the Reserve Bank of India in 1935 under the Reserve Bank of India Act.

Around the turn of the 20th century, the Indian economy was going through a relatively stable
period. Little banks were established by Indians, most of which took care of specific ethnic and
strict gatherings. International trade financing was the primary focus of the exchange banks,
which were primarily owned by Europeans. Indian joint stock banks missed the mark on
development and experience to contend with the administration and trade banks and were
commonly undercapitalized. Lord Curzon was able to see, "It appears that we are behind the
times in terms of banking" with this segmentation. Strong wooden bulkheads divide us into
awkward sections like a vintage sailing ship." A few of the banks that were made around then
have kept on working today, including Bank of India, Company Bank, Indian Bank, Bank of
Baroda, and Canara Bank.

10
3.2 Indian Banking System:

3 Phases of the Indian Banking System

This is a synopsis of the Indian financial framework's stages; Without a reliable and effective
financial system, India cannot have a robust economy. India's banking system ought to be ready
to handle any new issues brought on by technology and other internal and external factors, in
addition to being trouble-free.

The phases of the Indian banking system are summarized here:

India can't have serious areas of strength on the off chance that its monetary framework isn't
solid and proficient. India's banking system ought to be ready to handle any new issues brought
on by technology and other internal and external factors, in addition to being trouble-free.

The Indian financial area has a long history and an extensive rundown of striking achievements.
The most prominent element is its wide allure; It is no longer restricted to the cosmopolitan
and metropolitan areas of India. The Indian financial framework has spread over the whole
country. This is one of the main reasons why India is growing.

The government's consistent approach to Indian banks since 1969 has paid off in spades, with
the nationalization of 14 significant private Indian banks.

An account holder used to have to wait for hours at the bank counters for a draught or a
withdrawal of their own money.

They are as referenced underneath:

i. Indian banks' early years, from 1786 to 1969.

ii. Indian bank nationalization before the banking sector reforms in India in 1991.

iii. With the introduction of Indian financial and banking sector reforms in 1991, the Indian
banking system entered a new phase.

11
To provide a better illustration, the scenario is preceded by Phases I, II, and III.

Phase I: The General Bank of India was established in 1786. Bengal Endlessly Bank of
Hindustan was accompanying. The East India Company established Presidency Banks in 1806
under the names Bank of Bengal, Bank of Bombay, and Bank of Madras. In 1921, these three
banks were combined, resulting in the establishment of the Imperial Bank of India. At first,
these banks were possessed by confidential investors, principally Europeans.

The main bank established simply by Indians was Allahabad Bank, which was established in
1865. Established in 1894, Punjab National Bank Ltd. has its main office in Lahore. Between
1885 and 1913, the Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian
Bank, and Bank of Mysore were all established.

The Reserve Bank of India: An Overview Stage I development was very drowsy, and from
1913 and 1948, banks at times fizzled. There were about 1100 banks, the majority of which
were little. To standardize the operations and activities of commercial banks, the Government
of India enacted the Banking Companies Act, of 1949, which was later renamed the Banking
Regulation Act, of 1949 as a result of an amended Act of 1965 (Act No. 23 of 1965). The
Reserve Bank of India has broad authority to regulate Indian banking as the Central Banking
Authority.

The public's confidence in banks is lower on specific days. After that, the mobilization of
deposits was uneven. The savings bank facility run by the postal service was much safer before
it. Additionally, cash was intensely given to merchants.

II. Phase: The Indian banking industry undergoes significant reforms following independence.
Royal Bank of India was nationalized in 1955 with critical financial administrations,
particularly in rustic and semi-metropolitan regions. To go through with financial exchanges
for the Association and State Legislatures across the whole country, it laid out that the State
Bank of India acts as the RBI's main specialist.

Seven State Bank of India subsidiaries were nationalized on July 19, 1959. In 1969, a
significant process of nationalization was carried out. Mrs. Indira Gandhi, who was India's
prime minister at the time, worked hard to get 14 important commercial banks nationalized.
The steps the Indian government has taken to regulate banking institutions are listed below.

12
i. 1949: The Banking Regulation Act was enacted.

ii. 1955: Nationalization of State Bank of India.

iii. 1959: SBI subsidiaries being nationalized.

iv. 1961: Deposits were covered under insurance.

v. 1969: 14 major banks will be nationalized.

vi. 1971: Establishment of a credit guarantee company.

India saw a sharp rise in deposits and advances of 11,000 percent and an increase in public
sector bank branches of approximately 800 percent following the nationalization. Individuals
had implied confidence and huge trust in the reasonability of these associations since banking
was led under the unmistakable control of the public authority.

Phase III: As a feature of its change gauges, this stage extended the number of items and
administrations presented by the financial business. Under his presidency, a committee known
as M Narasimha was established in 1991 to work on the liberalization of banking procedures.

The nation is overrun with ATMs operated by foreign banks. An effort is being made to provide
customers with a satisfying experience. the introduction of online and telephone banking. The
entire procedure was made easier to use and faster. Time is esteemed more exceptionally than
cash.

The financial system in India has demonstrated remarkable resilience. It is safeguarded from
any emergencies welcomed by an outer macroeconomic shock, dissimilar to other East Asian
countries that encountered this. There is still a variable exchange rate regime, the capital
account is not entirely convertible, and banks and their customers only have limited exposure
to foreign currencies.

13
3.3 Causes for India’s Nationalization of Banks

Let's examine the factors that led to the government's decision to nationalize banks to better
understand how it would affect the banking sector and the populace:

 Revive Priority Sectors: Between 1947 and 1955, 361 banks failed, which equates to
around 40 banks failing every year. Banks were failing rapidly. Clients' deposits were
gone, and there was no way of getting them back. Banks favored big corporations and
industries while ignoring the rural sector, which included the agricultural sector. The
promise to support the agriculture sector came along with nationalization.

 Expansion of Branches: The nationalization process made it easier for new branches
to open, ensuring that banks are fully represented across the entire nation.

 Mobilization of Savings: By granting more people access to banks and encouraging

them to save, nationalizing the banks would increase the amount of money flowing into
a cash-strapped economy.

 Political and Economic Aspects: The two conflicts in 1962 and 1965 had a significant
negative impact on the economy. Increased deposits from nationalizing Indian banks
would stimulate the economy.

14
3.4 Types of Banks in INDIA

As we wind down our discussion on the evolution of the Indian banking system, we should
touch upon the types of banks that exist in India today. Here are the major categories of banks
that you are likely to come across:

 Banking in the public sector

A public sector bank's main ownership is held by the government. The State Bank of
India is a good example, with the Government of India owning 58.6% of its shares. We
might also take into account Punjab National Bank, in which the government owns a
58.87% interest.

State banks and the organizations they are affiliated with are further separated into
public sector banks and nationalized banks. With nationalized banks, the government
has total authority and controls all aspects of the institution. Yet, selling stock in these
institutions is another option available to the government. The stakes for the
government are lowered when this occurs. Occasionally, the government gains control
of one or more of these banks, at which point the bank is listed on the Indian stock
exchange.

 Banks in the Private Sector

Banks in the private sector are owned by private organizations. They gained notoriety
in the 1990s. These banks offer public sector banks fierce competition because of the
excellent quality services they provide.

 Indian Small Finance Banks

Basic banking services including deposits, loans, and bank transfers are offered by a
few specialized banks in India. These are small finance banks that serve the unorganized
sectors of the economy, small businesses, and marginal farmers, which aren't served by
traditional banks. Ujjivan Financial Services Pvt Ltd in Bangalore and Equitas Holdings
Pvt Ltd in Chennai are two examples of these banks.

15
 Indian Payment Banks

The RBI has developed a new concept called payment banks. Some banks are permitted
to receive deposits with restrictions but are not permitted to lend money or issue credit
cards. They provide both checking and savings accounts, and they can also dispense
debit or ATM cards. The Airtel Payments Bank, established by Bharti Airtel, is an
illustration of a payment bank in India. Because they provide online payment solutions
like mobile payment apps, such banks also have a significant impact on the
development of e-banking in India.

Fig. 3

16
In addition to cooperative credit institutions, the Indian banking system includes 12 public
sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban
cooperative banks, and 96,000 rural cooperative banks. There were 213,145 ATMs in India as
of September 2021, with 47.5% of them located in rural and semi-urban areas.

Bank assets increased in all industries in 2020–2022. In 2022, the total assets of the banking
industry (including both public and private sector banks) rose to US$ 2.49 trillion. The
combined assets of the public and private banking sectors were respectively $1,594.41 billion
and $925.05 billion in 2022. Credit to non-food businesses was at Rs. 128.87 lakh crore ($1.58
trillion) as of November 4, 2022.

Bank credit grew at a CAGR of 0.62% from FY16 to FY22. Total credit extensions reached
US$ 1,532.31 billion as of FY22. Deposits increased at a CAGR of 10.92% from FY16 to
FY22, reaching US$ 2.12 trillion by FY22. As of November 4, 2022, bank deposits totaled Rs.
173.70 trillion (2.12 trillion USD). Credit growth is anticipated to reach 10% in 2022–2023,
which will be a double-digit growth in eight years, according to India Ratings & Research (Ind-
Ra). Bank credit totaled Rs. 129.26 lakh crore ($1.585.09 billion) as of November 4, 2022.
Credit to non-food businesses was at Rs. 128.87 lakh crore ($1.58 trillion) as of November 4,
2022.

17
 Chapter 4. Role of Information Technology in the
Development of the Indian Banking Sector

A few unfamiliar banks have moved to India because of progression and data innovation,
growing the financial area's admittance to new clients, inventive items, and compelling
conveyance techniques. India's banking sector is extremely important to the economy's
expansion. Innovation usage has prompted expansions in effectiveness, efficiency, and
entrance. It has assisted make with little esteeming exchanges suitable as well as inflating cost
viability. It also broadens options, opens up new markets, and improves efficiency and output.
In India, monetary business sectors have been seen to have changed into purchasers' business
sectors.

Banks are becoming more and more like shopping malls with one stop. The focus is shifting
from mass banking to class banking as a result of the rise of personalized products. It empowers
banks to set up an impersonation branch in the entryway of a business working without utilizing
staff for human work. The use of telebanking, ATMs, internet banking, mobile banking, and
mobile banking has made it possible for the branches to be open around the clock. These
mechanically progressed appropriation channels assist organizations with reaching the best
number of clients in the most potentially financially savvy and compelling way. These new
financial innovations are appealing because they benefit both the bank and the customer. When
technology is used well, growth multiplies.

The buzzword of the moment is "digital" across the board. Banking, like other industries, is
moving toward digitization worldwide. All things considered, banks everywhere are putting a
lot of money into digital projects to stay ahead of the competition and give their customers the
best service possible. The choice to digitize is huge for the financial business. By adopting
digitization, financial institutions can provide better customer service. Clients are obliged and
time is saved thus.

18
E-banking has, without a doubt, cut costs and made money in a variety of ways. Business banks
in India have progressed towards advancement through bank motorization and mechanization
with the presentation of MICR-based check handling, electronic assets move, interoperability
among bank offices, and the utilization of ATM (Robotized Teller Machine) channels, which
have been considered whenever banking. The Reserve Bank of India is doing a good job of
improving the banks' payment and settlement systems. The way India spends its money has
changed thanks to advances made by the Indian government, banks, and technology companies.

The change is likewise a consequence of new client inclinations. According to the Shanlax
International Journal of Business, the current clientele is not comparable to what it was ten
years ago. In just a few short years, their preferences for goods and services have changed.
There are two types of buyers of digital goods: those brought into the world between the long
periods of 1977 and 1994 who were viewed as critical trailblazers, presented to advancement
since the beginning, and impervious to most customary showcasing; and people born between
the middle of the 1990s and the middle of the 2000s who are accustomed to a media and online
environment in which there are virtually no restrictions on what they can do.

Utilizing a smartphone application is an intense and reassuring experience. Biometric

authentication is now required for actions like opening the screen on mobile phones, making
them more and more like homes in nature. As a result, it is essential to develop applications
that are associated with a company to keep customers. Businesses that don't take advantage of
the convenience and luxury of being able to view costs at any time and from anywhere, which
are increasingly made possible by banking and financial applications, will undoubtedly lose a
lot of customers who will consider the company to be out of business.

● Innovative Upgrades

A couple of years prior, cell phones were simply beginning to acquire prevalence. At present,
the guaranteed gadget's utility decides it generally. People who travel frequently for business
prefer to use Apple and Android tablets, consultants prefer to use high-quality cameras and
digital notepads, and 9-to-5 workers prefer powerful workstations and high-performance
workspaces. The first step is to identify your target audience; Knowing who might use which

19
gadget in what circumstances is equally important. Banking and financial institutions spend a
lot of money on this to create effective digital strategies.

Cybercrime: The majority of financial apps are particularly susceptible to cyberattacks. Given
that making money is the ultimate goal, the reasoning is clear. Fraudsters have gained notoriety
for being imaginative in their endeavors to siphon saves, whether as huge amounts in a solitary
release or little installments from various records over a sizable timeframe. There is always a
chance that information will be compromised, even if money is not directly involved.

Information technology advancements significantly aid the banking industry's expansion and
inclusion by fostering inclusive economic growth. By improving front- and back-end
processes, IT contributes to a reduction in the costs associated with client transactions. The
banking sector in India has seen significant technological advancements, including:

 In the late 1980s and early 1990s, debit and credit cards were introduced for use in
making payments.

 The introduction of Electronic Clearing Services (ECS) occurred toward the end of the
1990s.

 The introduction of electronic fund transfer (EFT) occurred in the early 2000s.

 The RTGS went live in March of 2004.

 To take the place of Electronic Fund Transfer and Special Electronic Fund Transfer, the
National Electronic Financial Transfer (NEFT) was introduced in 2005 and 2006.

 CTS in 2007.

20
 4.1 An Overview of Indian Banks’ Performance

Fig. 4

India has seen a boom in fintech and microfinancing in recent years. Due to a five-fold growth
in digital disbursements, India's digital lending, which stood at US$ 75 billion in FY18, is
predicted to increase to US$ 1 trillion by FY23. From January 2017 to July 2022, the Indian
fintech market attracted $29 billion in capital across 2,084 deals, making up 14% of the world's
funding and placing second in terms of deal volume. India's fintech business is anticipated to
grow to 6.2 trillion rupees (US$ 83.48 billion) by 2025.

One of the main goals of the Indian state has been to expand banking outreach while also
digitizing. The Pradhan Mantri Jan Dhan Yojana, one of the largest national programs in recent
years, increased access to several financial services for economically disadvantaged groups in
society. The program makes it possible for people without savings accounts to open an account
without having to have a certain minimum amount. The vast country's rural interior has been

21
receiving encouragement from the RBI to expand the banking sector's network. In India, about
75 percent of people had bank accounts as of 2020. The establishment of digital banking units
(DBUs) across the nation was suggested in the Union Budget for 2023. The adoption of Internet
banking in the country is anticipated to increase as a result of expanding digitization initiatives.

Banks in India as of May 2022, based on market capitalization (in billion Indian rupees)

Fig. 5

22
4.2 Indicators of Change

Retail banking is dealing with a problem that is even more complicated than it was before. The
COVID-19 pandemic has altered the socioeconomic environment, but customer demands and
expectations are still evolving. These are a couple of markers that the retail banking area needs
to change. Banks have relied on the guidance of the RBI to develop regulations and offer
suggestions for achieving a variety of objectives. India's commercial banks have made strides
toward technology with the introduction of MICR-based cheque processing, electronic funds
transmission, branch-to-branch connections, and the use of ATM (Automatic Teller Machine)
Channel. As a result, Anytime banking now offers convenience. The Save Bank of India has
put forth huge attempts to work on the Installment and Settlement frameworks in banks.

Customers: The escalating expectations of customers have resulted in a shift in the objectives
of the banks. It will be easiest for banks to increase their market share if they can provide
seamless, individualized customer experiences.

Neo banks and other forward-thinking players are testing the laid-out banks in the cutthroat
market. Customers will choose these other providers if their needs are met better.

Economic: The pandemic's troublesome financial headwinds will come down on retail banking
edges. Retail banks are being compelled to create and broaden their ongoing method of activity
to remember computerized stages and different opportunities for requests to accomplish
productive development.

Regulation: Retail banks should ponder how well they are set up to submit to rules intended
to increment contest, help weak clients, support flexibility, and help online protection.

To support profitable expansion and significantly reduce operating expenses through

automated procedures, banks will need to invest in technology.

23
4.3 Possibilities for Development & Challenges Faced by Indian Banks

The retail banking industry has a lot of potential in India, a developing nation. The number of
middle- to high-income Indian households is on the rise, and it is anticipated that this trend will
continue. Another factor is that younger people are more comfortable taking on personal debt
than older people, and they also have more purchasing power.

Together, these components ensure enormous growth, which is currently in the embryonic
stage. There are numerous opportunities for success in banking, but there are also numerous
difficult obstacles.

 Maintaining and acquiring new customers is one of the most difficult tasks for banks.

 Indian retail banking faces significant challenges in India due to rising debt levels.

 The major FinTech patterns present two open doors and challenges.

 Retail banking services and products must be offered through all direct and digital
channels by banks.

24
4.4 Exposure of Indian Banks:

India's banking sector has been facing a high level of non-performing assets (NPAs) in
recent years, which has had a significant impact on their portfolios. Indian banks have
significant exposure to various sectors of the economy, including agriculture, retail, and
corporate sectors. The corporate sector, which includes large industries and
infrastructure projects, has been the primary source of NPAs for Indian banks. Many of
these loans were given during the economic boom, and the underlying projects did not
perform as expected, leading to a default on repayments.

As per the Reserve Bank of India's (RBI) latest Financial Stability Report (FSR), the
gross NPA ratio of Scheduled Commercial Banks (SCBs) in India stood at 7.5% as of
September 2021. The ratio has come down from the peak of 11.2% in March 2018.
However, the COVID-19 pandemic has led to an increase in stress in the banking sector.
The RBI has projected that the NPA ratio may rise to 9.8% by March 2022 under the
baseline scenario, and in the severe stress scenario, it may increase to 11.22%.

4.5 Upcoming Banking Properties in India

Simply put, the current model of banking cannot accommodate economic expansion as a whole.
The following are retail banking priorities that would bring India one step closer to full
financial inclusion. Banks must stand up to the uncertain landscape of the future.

Banks will organize themselves based on their customers rather than around their products or
channels in the new company model. Rather than promoting their items, they will be delicate
to the singular requests of every one of their clients and plan their contributions in like manner.

Social media will be the media

Web-based entertainment will be the principal divert utilized in retail banking in the future to
associate with, include, teach, and grasp the way of behaving of the clients. It will likewise act
as a gathering for clients to research and differentiate the administrations presented by banks.

25
Client connections

The top speculation objective for the retail banking industry is improving client trust.
Customers expect their banks to be socially responsible. For banks, taking a leading role in the
public debate will be extremely beneficial. The public will be taught fundamental financial
concepts, economics, and the advantages of banking by banks.

Network safety

Since clients are turning out to be progressively stressed over information protection and
security as their own data and monetary lives move on the web, network safety is fundamental
for keeping up with long-haul client associations. Plans must be developed by banks by their
operational requirements, procedures for risk management, and legal requirements.

Outsourcing of business operations

Business operations outsourcing Several retail banking processes could be outsourced to save
time and money. Likewise, it will empower banks to focus on their essential business exercises.
Banks will put in more effort to market, build their brands, and serve customers.

The public area banks’ NPA in the year 2017-18 was 454473 crore rupees which anyway

decreased to 285123 crore rupees in the year 2018-19. During this time, the net NPA
represented 4.8% of the net advances. Bank profitability was negatively impacted by the rising
NPA of public sector banks, which resulted in a loss of 81752 crores in 2018-19.

In 2017-18, the private sector banks' non-performing assets totaled 64380 crore rupees, rising
to 49309 crore rupees in 2018-19. The review’s primary goal was to comprehend the

advancement of the Indian financial industry and its difficulties.

Supply chains and logistics were disrupted as the Covid-19 epidemic spread in waves. India's
monetary policy committee (MPC) decided to keep the policy repo rate the same so that growth
can be restored and sustained over the long term while inflation stays within the target range.

26
In addition, the Reserve Bank of India (RBI) continued its concentrated efforts to meet the
industry's credit needs by:

Providing a term liquidity facility with various refinancing options to Indian banking
institutions (AIFIs) to pay for the facilities and services required for Covid-related medical
treatment. There are special long-term repo operations available.

Banking Reforms

The Indian banking sector has undergone reforms to improve banks' effectiveness, stability,
and efficiency. These reforms include:

 Digital Rupee
 National Asset Reconstruction Company Limited (NARCL)
 National Bank for Financing Infrastructure and Development (NaBFID)

Even though some people now live lives in which brick-and-mortar banks are no longer
considered necessary or outdated, at least 75% of those polled in the McKinsey 2016 Retail
Banking Multi-Channel Survey still place a high value on the benefits that "in-person"
interactions can provide, particularly when looking for guidance regarding major purchases
or complex products. The point is clear: Banks run the risk of losing customers to
competitors if they fail to recognize the individual requirements of their customers and
combine cutting-edge, effective technology with the advantages of face-to-face
interactions.

27
 Chapter 5. Risk

There are risks associated with all investments. The degree of uncertainty and/or the possibilit y
of financial loss inherent in an investment decision is referred to as risk in finance. As a general
rule, as venture gambles rise, financial backers look for more significant yields to repay
themselves for facing such challenges.

5.1 Why do the risks for banks matter?

Because of the enormous size of certain banks, overexposure to hazards can cause bank
disappointment and affect a large number of individuals. Governments can better regulate
banks to encourage prudent management and decision-making by comprehending the risks they
face.

The capacity of a bank to oversee risk likewise influences financial backers' choices.
Regardless of whether a bank can produce huge incomes, the absence of chance administration
can bring down benefits because of misfortunes on credit. Value investors are more likely to
put their money into a bank that can make money and doesn't have too much risk of losing
money.

28
5.2 Types of Risks Banks Face

 Credit Risk
 Operational Risk
 Market Risk
 Liquidity Risk

Let us understand each of these in a detailed manner:

1. Credit Risk:

Credit risk is the greatest gamble for banks. It occurs when counterparties or borrowers
fail to fulfill their contractual obligations. A default on a loan's principal or interest
payment is one example. Defaults can happen on contracts, Mastercards, and fixed pay
protections. Derivatives and provided guarantees are two other areas where obligational
contracts can be breached.

Due to the nature of their business model, banks cannot completely protect themselves
from credit risk, but they can reduce their exposure in several ways. Diversification
helps banks reduce their exposure because the deterioration of an industry or issuer is
frequently unpredictably unpredictable.

By doing this, banks are less likely to be overexposed to a category with significant
losses during a credit downturn. They can lend money to people who have good credit
histories, deal with high-quality counterparties, or have collateral to back up the loans
to reduce their risk exposure.

2. Operational Risk:

The risk of losing money as a result of mistakes, interruptions, or damages caused by

people, systems, or procedures is known as operational risk. Simple business operations
like retail banking and asset management carry a lower operational risk than more

29
 complex ones like sales and trading. Internal fraud and mistakes made during
transactions are examples of losses caused by human error. An example of this would
be when a teller gives a customer an extra $50 bill by accident.

It is possible to commit fraud on a much larger scale by breaking into a bank's

cybersecurity. It makes it possible for criminals to extort banks for additional funds
while also stealing bank account information and money from customers. Banks lose
customers' trust and capital in this scenario. The bank's reputation can be damaged,
making it harder to get deposits or business in the future.

3. Market Risk:

The activities of a bank in capital markets account for the majority of market risk.
Equity markets, commodity prices, interest rates, and credit spreads are all subject to
unpredictability. If banks are heavily involved in capital market investments or sales
and trading, they are more vulnerable.

Because a bank may have investments in companies that produce commodities,

commodity prices also play a role. The company's and investment's values fluctuate in
tandem with the commodity's value. Supply and demand shifts, which are frequently
difficult to predict, are what drive fluctuations in commodity prices. Therefore,
diversification of investments is essential for reducing market risk. Hedging their
investments with other investments that are inversely related is another method by
which banks reduce their investment.

4. Liquidity Risk:

The ability of a bank to access cash to fulfill funding obligations is referred to as

liquidity risk. Commitments incorporate permitting clients to take out their stores. A
snowball effect can occur when customers do not receive their cash on time. On the off
chance that bank delays giving money to a couple of their client for a day, different

30
contributors might race to accept their stores as they lose trust in the bank. This makes
it harder for the bank to get money and causes a bank run.

Overreliance on short-term funding, a balance sheet dominated by illiquid assets, and

customers' loss of faith in the bank are all contributors to banks' liquidity issues. Asset-
liability duration mismanagement can also result in funding issues. When a bank has
too many short-term obligations and not enough short-term assets, this happens.

Momentary liabilities are client stores or transient ensured venture contracts (GICs) that
the bank needs to pay out to clients. A bank may experience a mismatch in the duration
of its assets and liabilities if all or most of its assets are held in investments or loans
with longer terms.

Regulations are in place to alleviate liquidity issues. They include requiring banks to
hold sufficient liquid assets to continue functioning even in the absence of external
funding.

31
5.3 Non-Performing Assets (NPA)

A nonperforming asset (NPA) refers to a classification for loans or advances that are in default
or arrears. Nonperforming assets (NPAs) are recorded on a bank's balance sheet after a
prolonged period of non-payment by the borrower. NPAs over some time may indicate to
regulators that the financial fitness of the bank is in jeopardy.

5.3.1 Impact of NPA on Bank’s Portfolio:

The impact of NPAs on the portfolios of Indian banks has been severe. Banks have had
to make provisions for these NPAs, which has affected their profitability and capital
adequacy ratios. The provisions made by banks have also impacted their ability to lend.
Banks have become cautious in lending to sectors that have high NPA ratios, leading to
a slowdown in credit growth in those sectors.

Additionally, the high level of NPAs has led to an increase in the cost of funds for banks.
Credit rating agencies have downgraded the credit ratings of many banks due to their
high exposure to stressed sectors. This has led to a further increase in the cost of funds
for these banks.

The high level of NPAs has also led to a decline in investor confidence in the banking
sector. The stock prices of many banks have been under pressure due to concerns about
their asset quality.

In conclusion, the high level of NPAs in the Indian banking sector has had a significant
impact on their portfolios. The sector has been working to resolve the issue through
various measures, such as the Insolvency and Bankruptcy Code, but it remains a
challenge. The resolution of NPAs will be critical for the banking sector to regain
investor confidence and support economic growth.

32
 Let's now examine the non-performing assets of YES BANK, one of India's largest
banks.

YES, Bank is India's fifth-biggest confidential area bank, with all-out resources under
the administration of ₹3.14 trillion and a market capitalization of ₹173.09 billion,
starting around 30 September 2020. It is one of India's largest banks and has over 1,400
branches and 2,800 ATMs across the country. Its headquarters are in Mumbai. Retail
banking, corporate banking, investment banking, wealth management, and insurance
are just a few of the many financial services provided by the bank. Additionally, it
plays a significant role in India's NSE and BSE stock exchanges. Rana Kapoor, the
bank's founder and former CEO, established YES Bank in 2004.

As of March 2021, Yes Bank's non-performing assets total 97,500 crore rupees. This
includes loans that have been restructured for 19,000 crores, non-performing loans for
33,000 crores, and gross NPAs for 45,500 crores. Corporate customers account for the
vast majority of these NPAs, followed by retail customers. The power sector has the
highest NPAs, followed by the real estate and infrastructure sectors.

Fig. 6

33
The lender sustained improvements in NPA ratios during Q3. Prashant Kumar, MD & CEO
said, “During the quarter, the Bank successfully closed two deals which are strategic and
transformational in this new journey of the Bank. The bank's gross NPA dropped by 12.63% to
2.02% in Q3FY23 compared to 14.65% in Q3 of the previous fiscal. Also, gross NPA
contracted by 10.87% compared to 12.89% in September 2022 quarter

Effect of the non-performing asset on YES BANK portfolio

Non-performing assets (NPAs) can have a significant effect on a bank's portfolio. They can
reduce the value of the portfolio, as the bank is unable to recover the amount due from the loan.
This in turn reduces the overall profitability of the bank. It can also lead to an increase in bad
debt expenses, as the bank needs to provide for the losses associated with the NPAs. This can
further reduce the profitability of the bank. Moreover, NPAs can also result in an increase in
credit losses and a decrease in the overall capital adequacy ratio of the bank, which is a key
indicator of financial health.

34
5.4 Risk Mitigation

Risk management encompasses the identification, analysis, and response to risk factors that
form part of the life of a business. Effective risk management means attempting to control, as
much as possible, future outcomes by acting proactively rather than reactively. Therefore,
effective risk management offers the potential to reduce both the possibility of a risk occurring
and its potential impact.

Fig. 7

35
How do banks deal with every one of the dangers they face? By having an unmistakable,
formalized risk the executives plan, which:

 Improves performance
 Reveals key dependencies
 Increases control effectiveness
 It also makes it easier to identify systemic problems that affect the bank by using a root-
cause approach to identify risks. Banks create risk management programs like this.

Then, at that point, banks decide the dangers applicable to their associations and why those
occasions happen. Banks can also come up with risk mitigation plans to eliminate those risks
and stop them from coming back.

For instance, a bank can use progressed investigation and AI information to screen its tasks
naturally and ceaselessly.

The experiences from this continuous tech-empowered risk reconnaissance help the bank create
and adjust key gamble pointers (KRIs) to caution its gamble supervisory crews early enough
of any likely issues.

The automated surveillance alerts risk managers to activities that appear unusual or suspicious.
The bank can then guide its gamble supervisory crews to zero in on high-risk, high-esteem
regions as opposed to directing restricted, irregular, and time-serious reviews.

When putting a risk management strategy into action, banks specifically follow these steps:

Identification: Determine the source of the risk. Borrowers' credit risks, for instance, are
primarily brought on by lenders' erroneous assessments.

Evaluation and examination: To determine the likelihood of a risk and prioritize remediation
efforts, uniformly assess it.

Mitigation: Diminish risk openness, limit the probability of an occurrence, and persistently
address top worries to safeguard the bank.

Monitoring: Test, gather measurements, and remediate episodes to guarantee the controls are
powerful and address arising patterns to decide progress made on the risk the board drives.

36
Make connections: To recognize dependencies, identify systemic risks, and design centralized
controls, connect the dots between risks, business units, and mitigation strategies.

Reporting: To provide a dynamic view of the bank's risk profile and demonstrate the plan's
efficacy, generate reports about the program's progress.

37
5.5 Challenges banks face while managing Risk

Risk management is not without its challenges.

The way financial institutions deal with risks has changed as a result of new business models,
disruptive technologies, cultural shifts, and changes in regulations.

Risk supervisory groups in banks and monetary establishments should remain refreshed on the
most recent market improvements and administrative standpoints to be prepared for what's in
store.

Additionally, they must deal with several major obstacles, including:

 Expectations from customers: Today, customers use their mobile devices for a variety
of purposes, including banking. They want solutions that are as useful as their banks'
online platforms or branch operations, which leaves banks struggling with platform
design and security risks.

 New legal responsibilities: New guidelines or corrections to existing ones answer

public opinion, political disturbance, and different variables. If banks don't comply, they
run the risk of not complying.

 Online protection dangers: Malware, phishing, and other threats constantly target
cybersecurity in the banking and financial services industry, which is becoming
increasingly dependent on technology.

 Fraud and theft of identities: These are hindering to bank activities, present security
dangers to banks and their clients, and influence the general client experience, in the
end costing banks more cash.

 Tough opposition: Internet banks and tech companies entering the financial services
industry pose a growing threat to local and regional banks.

38
 Wasteful cycles: To avoid business or liquidity risks, banks expend a lot of resources
on operating expenses. These costs can quickly mount up if strict procedures are not in
place, posing credit, operational, and compliance risks.

39
 Chapter 6. Conclusion

The banking sector in India is currently fairly developed in terms of product offerings, scope,
and supply. In a non-industrial nation like India, where framework projects are popular,
partnerships should have the right mix of long-haul assets and chance cash flow to settle on the
ideal harmony between obligation and value. For the financial business to get capital, support
development, and keep a suitable capital sufficiency proportion to oversee risk, a sound
homegrown capital market is likewise fundamental. Additionally, bank investments are rising.
The researcher's investigation of the banking sector revealed that the persistent decline of the
money market is presenting the banking sector with several difficulties.

India's financial industry is at present genuinely evolved concerning supply, extension, and
item contributions. Their arrival in in-country India keeps on being an issue for the confidential
area and unfamiliar banks. In a developing nation like India, businesses must have the
appropriate combination of risk capital and long-term resources to determine the ideal debt-to-
equity ratio. For the financial business to get capital, support development, and keep a proper
capital sufficiency proportion to oversee risk, a sound homegrown capital market is likewise
fundamental. Interests in banks are additionally moving vertically. The researcher discovered,
after researching the banking industry, that the ongoing decline of the money market is causing
the industry to face more problems.

40
 Chapter 7. References

Bhatt, V. (April 2020). A Study of The Evolution of the Indian Banking Industry and
Its Challenges.

Dr.C. Vijai. (2019). ISSN: 2320-5407 Int. J. Adv. Res. 7(5), 1581-1587 1581
RESEARCH ARTICLE ARTIFICIAL INTELLIGENCE IN INDIAN BANKING
SECTOR: CHALLENGES AND OPPORTUNITIES.

G.S. POPLI, C. V. (JULY 2012). New Face of Indian Banking Industry - Emerging
Challenges & Potential.

LAVANYA, N. J. (February 2023). EVOLUTION OF THE BANKING SYSTEM IN

INDIA.

Manish Tanwar, B. T. (11-8-2011). Adoption of Banking Technology in Banks of India.

The paper examines the current state of the economy's scheduled commercial banks by
identifying the biggest public sector and private sector banks by market capitalization,
a. t. (n.d.).

https://www.economicsdiscussion.net/banking/banking-sector-reforms-in-india-a-
survey/6527

https://www.yourarticlelibrary.com/banking/indian-banking-system-3-phases-of-
indian-banking-system/23493

https://www.forbesindia.com/article/weschool/digital-revolution-in-the-indian-
banking-sector/47811/1

https://www.ibef.org/industry/banking-india

https://www.inscribe.ai/financial-risk-management/how-banks-manage-
risks#:~:text=Banks%20develop%20risk%20management%20programs,prevent%20t
hem%20from%20re%2Demerging.

https://corporatefinanceinstitute.com/resources/risk-management/risk-management/

41
 Chapter 8: Appendices

Figure No. Details

1 Technology Developments in Indian Banking Sector

2 Evolution of Banking

3 Segregation of Banks

4 An Overview of Indian Bank’s Performance

5 Share of Indian Banks as of Market Capitalization

6 YES Bank NPA Trend

7 Risk Management Process

42