PROBLEMS AND CHALLENGES ON INDIAN BANKING SECTOR IN PRE AND POST GLOBALISATION PERIOD

The post-nationalization era saw a sea-change in the banking scenario: financial stability of public sector banks (PSBs) controlling more than 84% of Banking business of the country, PSBs commanding trust and confidence of the Banking-public, expansion of Branch net-work of Banks – particularly in hitherto unbanked rural and semi-urban centers, opening up the banking services accessible to the rural poor, expansion of credit to agriculture, small scale industries and small entrepreneurs, artisans – even to the marginal farmers, small shopowners, vegetable vendors etc. Such expansion of Branch network, coupled with such massbanking, created considerable job opportunities on the one hand, and, on the other, it helped a green revolution on the agricultural sector, obviating dependence of import of food grains, as also a spurt in the development of Small and Medium Scale Industries. It also rescued a vast section of the rural poor from the exploitation by village-money-lenders. By tapping the hitherto untapped huge rural savings, the PSBs could help the growth of large-scale and capital intensive industries too. Even the most ardent critics of Public Sector too have had to recognize and appreciate the laudable role of PSBs towards development of economic selfreliance.