PARADIGM SHIFTS, ACHIEVEMENTS AND THREATS

The paper has made an attempt to map the reforms in the Indian banking system in its defining background. The paper notes that more than a decade and a half has gone by since the reform process was enunciated in the Indian banking system and during this span of time the reform measures have changed the Indian banking environment significantly. They are still leading crucial changes of far reaching impact. In this direction, the paper maps the new financial regime and the new rules of the game which have shifted the paradigms of the Indian banking system. It is in this light, the paper has made an attempt to identify the impact of reforms in terms of achievements and failures of the Indian banking system in the post 1990 period. The achievements certainly reflect a pleasing turnaround in the Indian banking system. While the reforms have successfully arrested the deterioration of the Indian banking system, they have also extended a new strength and business orientation to Indian banks. As such, the Indian banking system is now reflecting a better profitability and a significantly improved financial health. However, at the same time, the changed environment of the Indian banking system has given rise to certain threatening challenges. The paper has taken note of such threatening challenges and has offered suggestions thereof with a view to tackle them effectively before they grow out of proportion and go beyond control