INTRODUCTION
Indian banking has witnessed a paradigm shift after the financial sector reforms
introduced in 1991. The banks realized that profit will be under pressure with the introduction of
prudential norms and asset classification. There was a clear shift in the emphasis from growth
to profit; and on a clean, transparent, and healthy balance sheet as opposed to the
large-sized ones of the earlier years. As the foreign exchange and money markets were gradually
deregulated, competition intensified the net results of the bank were put under tremendous
pressure. Now the banks are looking for new avenues to meet the challenges posed to them.
Today, banks can look back with satisfaction by having responded effectively to the challenges put
before them from time to time- whether of social control or of reforms. In the future, the banks will
have to adjust their system of functioning, venture into new areas, improve efficiency
levels by the inclusion of trained and skilled manpower and restructure their
organizations. Then only, they can face the challenges
of the future more confidently and proactively.
