Contents

Sr.No.

Particulars

Chapter I : Perspectives on the Indian Banking Sector

1.

Introduction .

2.

Forces Shaping the Environment

3.

Strategic and Operational Responses

4.

Challenges

5.

The Way Forward

Chapter II : Global Banking Developments

1.

Introduction

2.

Global Banking Trends

3.

Banking Trends in Select Regions and Countries

4.

An Analysis of the Performance of Top 100 Global Banks

5.

Global Policy Reforms

6.

Conclusions

Chapter III : Policy Environment

1.

Introduction

2.

Monetary Policy

3.

Credit Delivery

4.

Financial Inclusion

5.

Prudential Regulatory Policy

6.

Supervisory Policy

7.

Regional Rural Banks

8.

Cooperative Banks

9.

Non-Banking Financial Companies

10.

Customer Service in Banks

11.

Financial Markets

12.

Payment and Settlement System

13.

Technological Developments

14.

Banking Sector Legislation

15.

Conclusions

Chapter IV: Operations and Performance of Commercial Banks

1.

Introduction

2.

Balance Sheet Operations of Scheduled Commercial Banks

3.

Financial Performance of Scheduled Commercial Banks

4.

Soundness Indicators

5.

Sectoral Deployment of Bank Credit

6.

Operations of Scheduled Commercial Banks in Capital Market

7.

Shareholding Pattern in Scheduled Commercial Banks

8.

Foreign Banks’ Operations in India and Overseas Operations of Indian Banks

9.

Technological Developments in Scheduled Commercial Banks

10.

Customer Service

11.

Financial Inclusion

12.

Regional Rural Banks

13.

Local Area Banks

14.

Conclusions

Chapter V - Developments in Cooperative Banking

1.

Introduction

2.

Urban Cooperative Banks

3.

Rural Cooperatives

4.

Role of NABARD in Reviving the Rural Cooperatives

5.

Conclusions

Chapter VI: Non-Banking Financial Institutions

1.

Introduction

2.

Financial Institutions

3.

Non-Banking Financial Companies

4.

Primary Dealers

5.

Conclusions

List of Boxes

Box No.

Particulars

II.1

European Banks’ Exposure to Euro Area Sovereign Debt

II.2

Key Objectives and Features of the Basel III Framework

II.3

Counter-Cyclical Capital Buffer: Concept and Working

III.1

Monitoring Interest Rate Sensitivity based on Duration Gap Analysis

III.2

Report of the Committee on Customer Service in Banks

III.3

Recommendations of the Working Group on Securing Card Present Transactions

IV.1

Asset Liability Mismatches (ALM) in the Indian Banking Sector: The Extent and Persistence

IV.2

Profitability versus Risks: An Analysis of Off-Balance Sheet Exposures in the Indian Banking Sector

IV.3

Net Interest Margin of the Indian Banking Sector: Efficiency versus Profitability

IV.4

Impact of Restructuring of Advances on the Asset Quality of the Banking Sector

IV.5

Robust Credit Growth and Credit Booms – An Analysis of the Indian Banking Sector

V.1

Merger and Amalgamation of Urban Cooperative Banks

V.2

Soundness of StCBs

V.3

Role of Rural Cooperatives in Financial Inclusion – Some Emerging Issues

VI.1

Inter-connectedness of NBFCs and Banks in India

VI.2

Credit Rating of NBFCs – Practices and Prospects

VI.3

Recommandations of the Working Group on the Issues and Concerns in the NBFC Sector

Table No.

List of Tables

II.1

Return on Assets of Banks for Select Economies

II.2

Growth in International Assets and Liabilities of Banks

II.3

Capital to Risk-Weighted Assets Ratio of Banks in Select Economies

II.4

Rank Correlation Coefficients for Top Global Banks between 2009 and 2010

III.1

Compensation under Agriculture Debt Waiver and Debt Relief Scheme

IV.1

Consolidated Balance Sheet of Scheduled Commercial Banks

IV.2

Growth in Balance Sheet of Scheduled Commercial Banks

IV.3

Non-SLR Investments of Scheduled Commercial Banks

IV.4

International Liabilities of Banks – By Type

IV.5

International Assets of Banks – By Type

IV.6

Classification of Consolidated International Claims of Banks on Countries Other than India – By Maturity and Sector

IV.7

Consolidated International Claims of Banks on Countries other than India

IV.8

Bank Group-wise Maturity Profile of Select Liabilities/Assets

IV.9

Asset Liability Mismatches in the Indian Banking Sector

IV.10

Trends in Income and Expenditure of Scheduled Commercial Banks

IV.11

Return on Assets and Return on Equity of SCBs – Bank Group-wise

IV.12

Cost of Funds and Return on Funds – Bank Group-wise

IV.13

Capital to Risk-Weighted Assets Ratio under Basel I and II – Bank Group-wise

IV.14

Component-wise Capital Adequacy of SCBs

IV.15

Trends in Non-Performing Assets – Bank Group-wise

IV.16

NPAs of SCBs Recovered through Various Channels

IV.17

Details of Financial Assets Securitised by SCs/RCs

IV.18

Sector-wise NPAs of Domestic Banks

IV.19

Trends in Provisions for Non-Performing Assets – Bank Group-wise

IV.20

Classification of Loan Assets – Bank Group-wise

IV.21

Sectoral Deployment of Gross Bank Credit

IV.22

Priority Sector Lending by Public and Private Sector Banks

IV.23

Priority Sector Lending by Foreign Banks

IV.24

Retail Portfolio of Banks

IV.25

Public Issues from the Banking Sector

IV.26

Resources Raised by Banks through Private Placements

IV.27

Resource Mobilisation through Euro Issues by the Banking Sector

IV.28

Risk-Return Performance, Turnover and Capitalisation of Bank Stocks

IV.29

Number of Public Sector Banks Classified by Percentage of Private Shareholding

IV.30

Overseas Operations of Indian Banks

IV.31

ATMs of Scheduled Commercial Banks

IV.32

Debit Cards Issued by Scheduled Commercial Banks

IV.33

Credit Cards Issued by Scheduled Commercial Banks

IV.34

Volume and Value of Electronic Transactions by Scheduled Commercial Banks

IV.35

Region-wise Complaints received at Banking Ombudsman Offices

IV.36

Bank-Group-wise Complaints received at Banking Ombudsman Offices

IV.37

Progress of Financial Inclusion

IV.38

Distribution of New Bank Branches Across Regions and Population Groups

IV.39

Number of ATMs of SCBs Located at Various Locations

IV.40

Progress Made Under Financial Inclusion Plans

IV.41

Progress of Micro-Finance Programmes

IV.42

Consolidated Balance Sheet of Regional Rural Banks

IV.43

Financial Performance of Regional Rural Banks

IV.44

Purpose-wise Distribution of Credit from Regional Rural Banks

IV.45

Profile of Local Area Banks

IV.46

Financial Performance of Local Area Banks

V.1

Grade-wise Distribution of Deposits and Advances of Urban Cooperative Banks

V.2

Distribution of Urban Cooperative Banks by Size of Deposits and Advances

V.3

Tier wise Distribution of Urban Cooperative Banks

V.4

Liabilities and Assets of Urban Cooperative Banks

V.5

Investments by Urban Cooperative Banks

V.6

Financial Performance of Scheduled and Non-Scheduled Urban Cooperative Banks

V.7

Select Financial Indicators of UCBs

V.8

Non-Performing Assets of UCBs

V.9

Advances to Weaker Sections by Urban Cooperative Banks

V.10

A Profile of Rural Cooperative Banks

V.11

Elected Boards under Supersession

V.12

Liabilities and Assets of State Cooperative Banks, end-March 2010

V.13

Financial Performance of State Cooperative Banks

V.14

Soundness Indicators of State Cooperative Banks

V.15

Liabilities and Assets of District Central Cooperative Banks

V.16

Financial Performance of District Central Cooperative Banks

V.17

Soundness Indicators of District Central Cooperative Banks

V.18

Primary Agricultural Credit Societies – Select Balance Sheet Indicators

V.19

Liabilities and Assets of State Cooperative Agriculture and Rural Development Banks

V.20

Financial Performance of State Cooperative Agriculture and Rural Development Banks

V.21

Soundness Indicators of State Cooperative Agriculture and Rural Development Banks

V.22

Liabilities and Assets of Primary Cooperative Agriculture and Rural Development Banks

V.23

Financial Performance of Primary Cooperative Agriculture and Rural Development Banks

V.24

Asset Quality of Primary Cooperative Agriculture and Rural Development Banks

V.25

NABARD’s Credit to StCBs, State Governments and RRBs

V.26

Tranche-wise Details of RIDF (As at end-March 2011)

V.27

Progress under Kisan Credit Card Scheme

VI.1

Ownership Pattern of Financial Institutions

VI.2

Financial Assistance Sanctioned and Disbursed by Financial Institutions

VI.3

Liabilities and Assets of Financial Institutions

VI.4

Resources Mobilised by Financial Institutions

VI.5

Resources Raised by Financial Institutions from Money Market

VI.6

Pattern of Sources and Deployment of Funds of Financial Institutions

VI.7

Weighted Average Cost and Maturity of Rupee Resources Raised by Select Financial Institutions

VI.8

Long-term PLR Structure of Select Financial Institutions

VI.9

Financial Performance of Select All-India Financial Institutions

VI.10

Select Financial Parameters of Financial Institutions

VI.11

Net Non-Performing Assets of Financial Institutions

VI.12

Asset Classification of Financial Institutions

VI.13

Capital to Risk (weighted) Assets Ratio of Select Financial Institutions

VI.14

Ownership Pattern of NBFCs

VI.15

Profile of NBFCs

VI.16

Consolidated Balance Sheet of NBFCs-D

VI.17

Major Components of Liabilities of NBFCs-D by Classification of NBFCs

VI.18

Public Deposits held by NBFCs-D by Deposit Ranges

VI.19

Public Deposits held by NBFCs-D Region-wise

VI.20

Public Deposits held by NBFCs-D - Deposit Interest Rate Range-wise

VI.21

Maturity Pattern of Public Deposits held by NBFCs-D

VI.22

Sources of Borrowings by NBFCs-D by Classification of NBFCs

VI.23

Major Components of Assets of NBFCs-D by Classification of NBFCs

VI.24

Assets of NBFCs-D by Asset-Size Ranges

VI.25

Distribution of Assets of NBFCs-D by Activity

VI.26

Financial Performance of NBFCs-D

VI.27

NPA Ratios of NBFCs-D

VI.28

NPAs of NBFCs-D by Category of NBFCs

VI.29

Classification of Assets of NBFCs-D by Category of NBFCs

VI.30

Capital Adequacy Ratio of NBFCs-D

VI.31

Net Owned Fund vis-à-vis Public Deposits of NBFCs-D by Category

VI.32

Range of Net Owned Fund vis-à-vis Public Deposits of NBFCs-D

VI.33

Profile of RNBCs

VI.34

Public Deposits held by RNBCs - Region-wise

VI.35

Investment Pattern of RNBCs

VI.36

Consolidated Balance Sheet of NBFCs-ND-SI

VI.37

Borrowings of NBFCs-ND-SI-By Region

VI.38

Financial Performance of NBFCs-ND-SI

VI.39

NPA Ratios of NBFCs-ND-SI

VI.40

Dependence on Public Funds

VI.41

Capital Adequacy Ratio of NBFCs-ND-SI

VI.42

Bank Exposure of NBFCs-ND-SI

VI.43

Performance of the PDs in the Primary Market

VI.44

Performance of Standalone PDs in the Secondary Market

VI.45

Sources and Applications of Funds of Standalone Primary Dealers

VI.46

Financial Performance of Standalone Primary Dealers

VI.47

Financial Indicators of Primary Dealers

VI.48

CRAR of the Standalone PDs

VI.49

Select Indicators of Primary Dealers

List of Charts

Chart No.

Particulars

II.1

Global Macro-economic Trends

II.2

Three-year Moving Average of Bank Credit Growth, in per cent

II.3

Bank Stock Indices in Select Economies/Economy Groups

II.4

International Assets/Liabilities of Advanced and Emerging Economies

II.5

Leverage in the Banking Systems of Select Economies

II.6

Asset Quality of Banks in Select Economies

II.7

CDS Spread of Global Banks

II.8

Sovereign and Bank CDS Spreads in Select Economies

II.9

Demographic Access to Banking Services across Select Economies

II.10

Usage of Banking Services across Select Economies – Deposits

II.11

Usage of Banking Services across Select Economies – Credit

II.12

Asset Growth in the US Banking Sector

II.13

Sectoral Rates of Growth of Credit of US Banks

II.14

Sectoral Delinquency Rates of US Banks

II.15

Balance Sheet Indicators of Banks in the Euro zone

II.16

Expectations about Credit Conditions for SME Sector in the Euro zone

II.17

Movements in Euro Inter-Bank Offered Rate

II.18

Interest Rates on Bank Deposits from Non-financial Corporations (with Less than One Year Maturity), Select Euro zone Economies

II.19

Expectations about Bank Credit Availability to SMEs in the UK

II.20

Write-off Rates of UK Banks

II.21

Growth in Balance Sheets of Chinese Banks

II.22

Location of Global Banking Business

II.23

Share of Countries in Total Assets of Top 100 Global Banks

II.24

Percentage Distribution of Top 100 Global Banks by Return on Assets

II.25

Percentage Distribution of Top 100 Global Banks by CRAR

II.26

Percentage Distribution of Top 100 Global Banks by Capital Adequacy (Leverage) Ratio

II.27

Percentage Distribution of Top Global Banks by NPLs Ratio

II.28

Changes in Soundness Indicators of Top 20 Global Banks

IV.1

Composition of Deposits 2010-11

IV.2

Deposits and Borrowings 2010-11

IV.3

Credit as per cent of Deposits plus Borrowings 2010-11

IV.4

Incremental Credit- and Investment-Deposit Ratios of SCBs

IV.5

Composition of Off-Balance Sheet Exposures of the Banking Sector 2010-11

IV.6

Net Profits of SCBs

IV.7

Cost of Funds and Return on Funds – Bank Group-wise 2010-11

IV.8

Tier I Ratio of Public Sector Banks

IV.9

Trends in Gross Non-Performing Assets

IV.10A

NPAs Written Off as per cent of Previous Year’s Gross NPAs

IV.10B

Written Off Ratio – Bank Group-wise 2010-11

IV.11A

Slippage Ratio

IV.11B

Slippage Ratio - Bank Group-wise 2010-11

IV.12A

NPAs Recovered as per cent of Previous Year’s Gross NPAs

IV.12B

Recovery Ratio - Bank Group-wise 2010-11

IV.13

Ratio of NPAs to Advances

IV.14

Composition of Incremental NPAs of Domestic Banks 2010-11

IV.15

Shares of Population Groups in Agricultural and Industrial Credit

IV.16A

Priority Sector Lending: Target and Achievement 2010-11

IV.16B

Agricultural Advances: Target and Achievement 2010-11

IV.17A

Priority Sector Advances - Target and Achievement 2010-11

IV.17B

Export Credit – Target and Achievement 2010-11

IV.18

Relative Performance of BSE Bankex and BSE Sensex - 2010-11

IV.19

Government Shareholding in PSBs

IV.20

Foreign Shareholding in Domestic Banks

IV.21

Shares of Bank Groups in Outstanding Debit Cards

IV.22

Shares of Bank Groups in Outstanding Credit Cards

IV.23

Major Complaints against Bank Groups 2010-11

IV.24

Bank Branches Opened in Hitherto Unbanked Centres (April-March)

IV.25

Region-wise Population per Bank Branch (end-March 2011)

IV.26

Population Group-wise Distribution of ATMs (end-March 2011)

IV.27

Share of Regions in Total Net Increase in ATMs 2010-11

IV.28

Distribution of Deposit and Credit According to Banking Centres – March 2011 .

IV.29A

Region-wise Share in Credit – March 2011

IV.29B

Population Group-wise Share in Credit – March 2011

V.1

Structure of Cooperative Credit Institutions in India

V.2

Grade-wise Distribution of Number of UCBs and Share in Total Advances and Deposits

V.3

Changing Profile of UCBs

V.4

Asset Size-wise Distribution of UCBs

V.5

Composition of Investments of UCBs

V.6

Distribution of UCBs according to CRAR

V.7

CRAR and RoA of UCBs

V.8

Composition of Advances to Priority Sectors by UCBs

V.9

Region-wise and State-wise Profile of UCBs

V.10

Percentage Share of Top and Bottom Five States in Total Number of UCBs

V.11

Select Balance Sheet Indicators of Scheduled StCBs

V.12

Percentage Share of Different Categories of NPAs of StCBs

V.13

Purpose-wise Details of Projects and Loans Sanctioned under RIDF

VI.1

Net Non-Performing Assets/Net Loans

VI.2

Number of NBFCs Registered with Reserve Bank of India

VI.3

Ratio of Public Deposits of NBFCs to Broad Liquidity (L3) andAggregate Deposits of SCBs

VI.4

Share of Public Deposits held by NBFCs-D-by Deposits Ranges

VI.5

Share of Public Deposits held by NBFCs-D Region-wise

VI.6

Public Deposits held by NBFCs-D-Deposit Interest Rate Range-wise

VI.7

Maturity Pattern of Public Deposits held by NBFCs-D

VI.8

Financial Performance of NBFCs-D

List of Appendix Tables

Table No.

Particulars

IV.1

Off-Balance Sheet Exposures of Scheduled Commercial Banks in India

IV.2(A)

Non-Performing Assets of Public Sector Banks - Sector-wise

IV.2(B)

Non-Performing Assets of Private Sector Banks - Sector-wise

IV.2(C)

Non-Performing Assets of Foreign Banks - Sector-wise

IV.3(A)

Non-Performing Assets in Advances to Weaker Sections - Public Sector Banks

IV.3(B)

Non-Performing Assets in Advances to Weaker Sections - Private Sector Banks

IV.4(A)

Advances of Public Sector Banks to Agriculture and Weaker Sections

IV.4(B)

Advances of Private Sector Banks to Agriculture and Weaker Sections

IV.4(C)

Advances of Foreign Banks to Micro and Small Enterprises (MSE) and Export sectors

IV.5(A)

Targets Achieved by Public Sector Banks under the Priority Sector

IV.5(B)

Targets Achieved by Private Sector Banks under the Priority Sector

IV.5(C)

Targets Achieved by Foreign Banks under the Priority Sector

IV.6

Bank Group-wise Lending to the Sensitive Sectors

IV.7

Share Prices and Price/Earning Ratios of Bank Stocks at BSE

IV.8

Shareholding Pattern of Domestic Scheduled Commercial Banks

IV.9

Branches and ATMs of Scheduled Commercial Banks

IV.10

Statement of Complaints Received at Banking Ombudsman Office

IV.11

Credit-Deposit Ratio and Investment plus Credit-Deposit Ratio of Scheduled Commercial Banks - Region/State-wise

V.1

Select Financial Parameters of Scheduled UCBs

V.2

Major Indicators of Financial Performance of Scheduled UCBs

V.3

State-wise Distribution of UCBs

V.4

Working Results of State Cooperative Banks - Region and State-wise

V.5

Working Results of District Central Cooperative Banks - Region and State wise

V.6

Select Indicators of Primary Agricultural Credit Societies-State wise

V.7

Working Results of State Cooperative Agriculture and Rural Development Banks - State-wise

V.8

Working Results of Primary Cooperative Agriculture and Rural Development Banks -State-wise

V.9

Sanctions and Disbursements Under RIDF - State-wise

V.10

Kisan Credit Card Scheme: State-wise Progress

VI.1

Financial Assistance Sanctioned and Disbursed by Financial Institutions

VI.2

Financial Performance of Primary Dealers

VI.3

Select Financial Indicators of Primary Dealers