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This paper presented at the 7th International Banking & Finance Conference, held on June 5, 2013, in Mumbai, explores the critical role of banks and the financial sector in driving recovery and growth in India. Authored by Ashima Goyal, it addresses structural transformations within the financial sector, including issues like non-performing loans, capital flow volatility, and the relationship between bank rates and lending rates. The research underscores the need for ongoing reforms to strengthen the financial ecosystem and promote sustainable economic growth.
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I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i Financial Sector Reforms: an Unfinished Agenda 7th International Banking & Finance Conference 2013 “Road to Recovery and Growth – Role of Banks and Financial Sector” Mumbai, June 5, 2013 AshimaGoyal
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i Structural Transformation
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i India: Changing banks and markets Source: RBI, CMIE, IFS
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i Bank nonperforming loans to total gross loans (%) Source : Calculated from World Bank dataset LAF daily: 2008-10 4
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i Risks
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i Spreads between 3 month T-Bill and inter-bank rates Spreads between bank rate and lending rate Source : Calculated from RBI
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i Volatile constituents of capital flows Banks off -balance sheet items (Rs. Crs) Source : Report on trend and progress of banking in India, RBI (2011)
I n d i r a G a n d h iI n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i India: FPI and BSE sensex
I n d i r a G a n d h iI n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i India: FPI and BSE sensex
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i Thank you