Globalization And Impact On Indian Banking Sector Money Essay



This can be an introduction section which explains the structure of the dissertation. It commences with a short introduction to the area of research, goal and aims and objectives set because of this research. This section also includes justification for selecting banking sector to review the impact of globalization for this study.


A bank or investment company is a qualified body by the federal government which is primarily engaged in the process of borrowing and loaning money which in turn helps in financial development of the united states. The customers of the loan provider are mainly household's government, open public/ private corporation's who invest and borrow money from these corporations. Banking companies have a monopoly in creating credit in the market. If companies are given with fund, it encourages companies which contributes to increase in development, leads to campaign of jobs, less reliance on international imports. If personal customers are provided with finance it would stimulate the demand for goods which then causes an in increase creation of goods. Therefore banks play an essential role in the financial development of the united states (Cox 1983, pg2-4).

Initially there were many obstacles in the banking sector through out the world. They were insufficient information about overseas companies, tax responsibility which was appropriate to income received from these orders, cost of executing international trades were expensive. Laws were taken away in 1980's and early 1990's. Government allowed privatization in 1990. Federal owned companies were sold to individuals, trading of stocks and options of businesses was allowed publicly. This resulted in globalization, deregulation and liberalization. Under the influence of globalization Internet and telephone bank, ATM, credit and debit cards and a great many other services provided by the banking sector were created which has increased the efficiency of banking institutions and has brought the banking revolution( Madura 1995, pg-7 ).

Globalization has resulted in a trend in the banking sector though Indian banking institutions stiff face severe troubles. This study will identify these problems and the researcher will also suggests some of solutions found in the literature to conquer these challenges and will co-relate solutions found through most important research. This will help in understanding the Indian banking sector in dept. Furthermore if the Indian banking sector defeat these obstacles it can draw its place with other leading global titans.


To examine critically the impact of globalization on Indian bank sector highlighting the issues faced by the Indian finance institutions is the primary focus of the research. Since the days and nights of Bretton Woods age financial world has witnessed remarkable changes. Technological change and trim neck competition has enforced the financial world to look at better techniques and entice customers. The range of products and services were limited in the 70's(Raul 2005, pp 39).

After gaining independence in 1947

Until 1991 there has been regulations like implemented interest levels and federal government control etc. upon implementation of advice by Narsimha committee led to immediate and radical changes. Now the banking sector offers large selection of services like securitization, leasing and seek the services of purchase, custodial service, depositories, factoring etc. New financial institution, dis-intermediation, greater professionalism and reliability and technological innovation have emerged consequently of liberalization, privatization and globalization. In addition to this capital adequacy norms, income identification and resources classification were launched in the ambit of bank activities and banks are compelled to cope up with the process of deregulation, competition, asset responsibility management and globalization(Raul 2005, pp 39).


The primary goal of this research work is to investigate critically and verify the idea of globalization and its own impact on the Indian bank sector along with and issues which arise as a result of globalization. The researcher also seeks to find out the adverse effect of these issues and what steps can be studied to reduce them.

Research question - " A report on the impact of globalization on the Indian bank sector highlighting the obstacles faced by the public sector banking companies in India".

The main aims of the research are the following:-

To study the the difficulties confronted by the Indian consumer sector banks with regards to technology, human tool, customer service, NPA's.

To analyze and explore the solutions to defeat these issues.


Indian bank sector is resilient and has shown tremendous growth yet it encounters many issues which needs to be managed and managed. Recently there were waves of lender failures throughout the world. Lenders became insolvent anticipated to which there is financial downturn globally. Finance institutions are highly volatile in mother nature and have an immediate effect on the economy of your country. So every country should aim to make their bank operating system stable and sound only they will be able to stand up to the shocks.

Many changes took devote the Indian economy since 1990's that has revolutionized and revitalized the Indian economy. During this period the key expansion industries and consumer demands have undergone a series of changes. The researcher is thinking about looking into the impact of changes regarding bank sector.

India is a producing economy there sits many areas in the Indian bank sector to be explored also this is an untouched area in the UWIC. All of the above mentioned items determined the researcher to review in detail about the Indian banking sector, impact of globalization on it, and issues arising consequently of globalization also highlighting potential alternatives. This piece of work can provide direction or a construction for other producing countries which are also facing similar challenges.

Moreover, The researcher is a long term citizen of India and can gain gain access to or conduct interviews of the bank managers to get information which would further form a basis of research.



Anglo Saxon and Asian model are the two models of possession by the banking companies. Many developed countries have followed the Anglo Saxon model. Under this model the key decisions are considered by the most notable executives individually dictated by short term requirements and regulations may well not be stringent. The latter model is used by many expanding countries like India. India has a economic climate which has considerable ownership by the general public sector and has another type of structure of bonuses for the top executives. It is more likely that in this model where more technical products are involved there exists less financial creativity. thus this sector is likely to be less productive and less impressive but would become more steady. The advantage of this sector during the time of problems is the recognized sovereign backing. While the previous model during crisis came under great pressure whereas the later model like the existence of general population sector made the Indian economic climate sound and secure. It was noticeable from the actual fact that during 2oo8 and 2oo9 international and private sector banking institutions NA ratio increased significantly and since an after aftereffect of crisis, the general public sectors NA percentage declined. It had been lowest amongst all bank communities.

For the Indian Banking sector, the public ownership has proved to be a way to obtain strength somewhat than weakness. On the other hand to the belief that public ownership weakens the efficiency of a firm does not stand true in the case of the Indian bank sector. RBI organized an analytical exercise which implies that cost and technical efficiency of the general public sector banking institutions have been higher than private and overseas lenders in India just lately. Moreover general population sector finance institutions key role played out by the finance institutions is public development and also to meet the objectives of developmental fund which is very essential for a developing current economic climate like India. general population ownership plays a substantial role in the economic development of the country. (RBI 2OO7 2OO8, pp 22

In addition to all these reasons the key purpose of the researcher to spotlight the challenges experienced the general public sector bankers was because if these banks overcome their problems they can make a location for itself with the other leading banks.


This dissertation is split into five chapters that happen to be the following:-

Chapter 1- That is an introductory chapter. It point out the aims and objectives; purpose ; justification of the analysis. This chapter talks about the structure/body of the dissertation.

Chapter 2- This section forms a bottom part/ platform for this dissertation. It involves ideas and viewpoints put forward by scholars and various authors who've successfully researched upon this field. The researcher has critically analyzed the books also highlighted the key issues, ideas, quarrels by different authors. This chapter mainly protects globalization, its characteristics, theory of globalization, Indian bank sector and troubles faced by the Indian banks.

Chapter 3- Key focus of the section is on the methodology adopted for this research. This includes the research design, data collection methods, research ethics, validity and stability. It also includes limitations of this study.

Chapter 4- This chapter explains the evaluation of the data/information collected. Interviews and questionnaires are critically analyzed to give a picture about the analysis.

Chapter 5- The previous section of data research enabled the researcher to get conclusions and provide advice which is detailed in this chapter, combined with the research studies and research area that your researcher intends to hide and carry out next time after successful completion of the research.


This chapter explicitly points out the structure of the dissertation along with aims and objectives create for the analysis by the researcher. It also explains about the research area, purpose and highlights the explanation for selection of bank sector in Indian to study the impact of globalization.

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