Competition in Indian Banking

It is widely perceived that competition in the Indian banking sector has increased since the inception of the financial sector reforms in 1992. Using annual data on scheduled commercial banks for the period 1996-2004, the paper evaluates the validity of this claim in the Indian context. The empirical evidence reveals that the Indian banking system operates under competitive conditions and earns revenues as if under monopolistic competition.Banking;competition, banking sector, banking system, banking industry, monopolistic competition, monopoly, bank group, capital adequacy, bank groups, perfect competition, bank size, banking sector reforms, merger, degree of competition, mergers, bank branches, concentration ratio, banking sector assets, banking system assets, asset classification, banking markets, capital requirement, bank competition, banking products, banking systems, banking crises, bank loan, degree of market power, competitive market, bank branch, cross subsidization, bank deposits, capital adequacy ratio, return on assets, bank assets, bank asset, banker, bank offices, loan concentration, banking structure, private bank, performance analysis, bank structure