The study shows that if the Islamic Banking is introduced in India, definitely Muslims and Non-Muslims will actively participate in the banking system and we can ensure the overall inclusion of the people in the formal financial system. The criticizers of Islamic Banking point out that the introduction of Islamic Banking is not feasible in India because the legal framework of India is not allowing such a kind of banking system. But the United Kingdom which is the source of our constitution and banking laws, already adopted Islamic Banking due its immense opportunities for the future growth. There is three option for the Government of India to introduce Islamic Banking;(1)The amendment of the current legal framework (2)Establishment of a separate legislation for the functioning of Islamic Bank (3)Allow the foreign Islamic Banks to open their branches in India. Islamic Bank is the need of the hour and it will lead to the inclusive growth of
He used dynamic panel model for this study. In the result if there is under develop financial system then its contribution is limited in economy growth. There is more efficient banking sector then it will increase economy growth. Din and khawaja (1995) explained the study scope of interest of the banking industry in Pakistan. In this study, data collected was used for cross section model.
There have been no academic studies of the profit efficiency effects of mergers and very little research on the market power effects of bank mergers. Therefore, the effects of mergers on profitability ratios or equity values may confound changes in profit efficiency with changes in the exercise of market power in setting prices. The effects of equilibrium market structure on prices and profits provide some support for both market power and efficient structure effects of concentration and market share. Both of the profit efficiency and market power effects of mergers are try to identify the conditions that predict when either profit efficiency or market power is likely to be
Technological advancement, liberalization of domestic financial sector and capital account have all contributed to its development and changing adaptations. But the man agents for this changes are the Government, Private Investors and Financial Institutions. Over the years, International financial intermediaries have been introduced and have been used quite frequently and they have contributed two factors in the development of financial
CHAPTER ONE INTRODUCTION 1.1 Background of the Study The globalization of the financial market has hinged upon financial institutions to make changes on their operational processes to endure beyond local competition. This tendency has led many financial institutions in developing countries such as Nigeria to improve upon its customer service with quality, speed, reduced operating cost and enhance profitability performance (Randle, 1995). As the financial market consolidates due to mergers and acquisitions of banks and up-to-date strategy, banking services has innovated into personalized banking portfolio management. The resultant effect is that banks will no longer focus on cutting costs alone, but rather on simultaneously improving services to customers. In other words, the processes are not only more efficient, but also more customer friendly as well.
It has employed almost to 10 million Indians and hence, has contributing a lot to social transformation in the country. Furthermore, Indian business, across all other sectors, largely depends on the IT & ITeS service providers to make their business processes effective and profit making. The Indian manufacturing sector consists of the highest IT expenses followed by automotive industry, chemical and consumer product industry. IT is seen as change enabler and source of business values for organisations by 85% of the respondents, according to a study which was done by
Scheduled Banking structure in India (As included in the Second schedule of the RBI Act., 1934.) Source : Report on trend and progress of banking in India 2002, RBI, Mumbai 1.1.2. Indian Banking Scenario The banking sector in India, consisting of both domestic and international banks is growing in a rapid speed. In the last few decades many positive changes took place in Indian banking sector. In reality the most attractive side of Indian banking system is its widespread reach, as it is not restricted to only metropolitans or cosmopolitans of India.
This would guarantee that India has three to five banks, each with sizeable worldwide presence these huge banks would offer a full-scope of commercial banking business to corporate, small and medium enterprises (SMEs), retail, mass banking and worldwide clients. The rest of the banks could proceed under government proprietorship, however shun loaning to large
However, this was the critical period acting as the icebreaker, which led to the slow and steady move towards large scale technology adoption. Over the years, the banking sector in India has seen a number of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers, and consequently, the banks. Some of the significant changes in the Indian banking sector Technology by changing the production techniques results in improvement in productivity. History has shown that modern economic growth has been inspired by the rapid and persistent upgradation of technology and scientific knowledge.
In 1960, when Reserve Bank of India was empowered to force compulsory merger of weak banks with the strong ones, it significantly reduced the total number of banks from 566 in 1951 to 85 in 1969. Banking industry is the strength for the growth of any economy. The journey of Indian banking system has faced many phases of economic changes. The strong banking procedures and controls and regulations framed had no effect on India in the recent world economic crisis. The Banking industry has transformed itself from a stagnant business