Indian Banking Sector a Major Contributor to Economy: Constancy Major Concern
Namita Rajput1, Anil Kumar Goyal2
1Dr Namita Rajput, Principal (OSD), Sri Aurobindo College (E), University of Delhi, India.
2Anil Kumar Goyal*, Professor, Rukmini Devi Institute of Advanced Studies, New Delhi, India.

Manuscript received on November 11, 2019. | Revised Manuscript received on November 20 2019. | Manuscript published on 30 November, 2019. | PP: 11596-11608 | Volume-8 Issue-4, November 2019. | Retrieval Number: D8933118419/2019©BEIESP | DOI: 10.35940/ijrte.D8933.118419

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Abstract: Due to an intermediary role of banks in the economy, they hold a unique locus across all sectors with prudent lending policies, environmental impact analysis, and efficient credit approval systems. The banks play a vital role in the lending process which is dispatched along with the credit risk, that is, when the borrower fails to repay the money borrowed and fails to satisfy the obligations, then the asset is said to be bad or Non-performing. A poor financial performance in an economy creates a distress in the economic stability leading to an economic crisis. The banking stability has a direct impact on the real output and employability which revolves around the financial stability of an economy. With the global initiatives undertaken, the Reserve Bank of India (RBI) developed Banking Stability Map and published the Financial Stability Report in 2010. It is measured using five dimensions of Stability Map, which are, Soundness(s), Asset Quality (Q), Profitability (P), Liquidity (L) and Efficiency (E).With the upsurge in the deteriorating asset quality and the financial health of banking institutions, lack of adequate fund and pressure of capital regulation makes the balance of stability in the Indian banking sector a challenge. The main objective of the study is to conduct a comprehensive review of all the possible dimensions of financial stability in the country across the Public Sector, Private Sector and Foreign Banks through Statistical tools from a time period of 13 years from 2005-2018. The statistical data and figures will be beneficial for the upcoming researchers and policymakers, as it displays an overview of the banking stability across the three main tiers of the banking world.
Keywords: NPA, Public sector banks, Private Sector Banks, Foreign Banks, Financial Stability Map.
Scope of the Article: Industrial, Financial and Scientific Applications of All Kind.