Indian Banking Industry is among the most regulated in the world. Due to the stringency of norms, Indian banks were least affected by the financial crisis in 2008, which led to the collapse of many large Western banks. In Mar-13, nationalized banks accounted for 52% of the total deposits, followed by State Bank of India and associates (~22%) and New Private Sector banks (~14%). Post-liberalization, the Indian banking industry witnessed rapid changes. The newly licensed private entities adopted technology to enable business expansion, leading to higher efficiency and productivity. Even PSBs adopted their business practices to compete effectively. Technology is likely to be the base of innovations in the future. Telecom penetration is expected to aid the growing phenomenon of mobile banking. Aadhar-enabled payments are an evolving scenario, with very high fund transfers involved at negligible incremental costs, to a mostly unbanked population. New licenses, BASEL norms, and M&A policy are expected to create new flurry of activities in the industry.
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