Journal of Management Research
Volume 6, Number 2 ( August 2006)
ISSN: 0972-5814 Online ISSN: 0974-455X
Evaluation of Private Sector Banks in India A SWOT Analysis
Dharmendra Singh and Garima Kohli
| Abstract |
The banking and financial sector in India underwent a significant liberalization process in the early 1990s, which led to reforms in the banking and financial sector and changed the Indian banking structure. During the period from 1992 to 1997, interest rates were liberalized and banks were allowed to fix lending rates. By 1977 CRR was reduced to 9.5% and SLR was reduced to 25%. As a sequel to these reforms, new private sector banks were allowed entry in the market. Many of these private sector banks brought with them new technologies. Private sector banks started product innovation and competition. Even then Indians prefer nationalized banks for their services. The failure of Global Trust Bank made Indian depositors to question the sustainability of private sector banks. This paper attempts to undertake SWOT Analysis of 20 old and 10 new private sector banks. These banks have also been ranked on the basis of financial data for the years 2003, 2004 and 2005. The study has used CAMEL model for evaluating these banks.
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