Author(s):
Anoop Mohanty, Tanuj Mohanty
Email(s):
anoop.mohanty@lpu.co.in , tanuj.mohanty@bankofindia.co.in
DOI:
10.52711/2321-5763.2021.00065 
Address:
Mr. Anoop Mohanty1, Mr. Tanuj Mohanty2
1Assistant Professor, Mittal School of Business, Lovely Professional University, NH-1, Near Cheheru Railway Station, Phagwara, District Kapurthala, Punjab 144411.
2Executive, Bank of India, House no 118 A, Sector 51 A, Chandigarh 160046.
*Corresponding Author
Published In:
Volume - 12,
Issue - 4,
Year - 2021
ABSTRACT:
Banking system has been the backbone of Indian economy. Banking industry has seen a drastic transformation in past two and half decades with emergence of new players in the form of new generation private sector bank, payment banks, non banking financial companies. Competition among service providers has lead to sustainability issues. Balancing between business expansion, risk absorbing capacity and profitability is important. Survival of the fittest is the rule of the game. Nationalization of private banks was done to expand the service base for common masses. Since independence public sector banks have played a key role in the development and balanced growth of all sections of the society. Public sector banks were supported by a league of few old generation banks that catered the niche segments across India. Kerala is the birth place of many old generation private sector banks. Old generation banks worked in line to the practices followed by the leading public sector banks. Indian Banking Association (IBA) was formed for bringing standardization among peer players across industry. Post liberalization era has originated many new generation banks are genetically modified hybrids. New variants are designed for specific objectives of profit maximization en-cashing available opportunities. Business expansion is based on profit criteria rather than social requirements. Ideologies have differed a lot across generations. Public sector banks and new generation private sector banks are operating with diverse organizational goals. This case study highlights the comparative scenario of private sector banks with that of public sector banks to understand the market dynamics in the game of performance and survival.
Cite this article:
Anoop Mohanty, Tanuj Mohanty. Banking System Paradox. Asian Journal of Management. 2021;12(4):430-4. doi: 10.52711/2321-5763.2021.00065
Cite(Electronic):
Anoop Mohanty, Tanuj Mohanty. Banking System Paradox. Asian Journal of Management. 2021;12(4):430-4. doi: 10.52711/2321-5763.2021.00065 Available on: https://ajmjournal.com/AbstractView.aspx?PID=2021-12-4-13
REFERENCES:
1. Balasubramaniam CS, 2012. Non-performing assets and profitability of commercial banks in India: assessment and emerging issues. Abhinav Journal, Vol. 1, No. 7, p. 34.
2. Bansal R and Mohanty A, 2013. A Study on financial performance of commercial banks in India: Application of Camel model. AlBarkaat Journal of Finance & Management, Vol. 5, No. 2, pp. 60-79.
3. Bhatia A, Mahajan P and Chander S, 2012. Determinants of profitability of private sector banks in India. Indian Journal of Accounting, Vol. 42, No. 2, pp. 39-51.
4. Bodla BS and Verma R, 2006. Determinants of profitability of banks in India: A multivariate analysis. Journal of Services Research, Vol. 6, No. 2, pp. 75-89.
5. DeYoung R and Rice T, 2004. Noninterest income and financial performance at US commercial banks. Financial Review, Vol. 39, No. 1, pp. 101-127.
6. Kavitha S, 2020. A study on the consolidation and merger of PSB’s in India: Issues and Challenges–with special reference to PNB, OBC, and United Bank. The International Journal of Analytical and Experimental Modal Analysis, Vol. 12, No. 1, pp. 2300-2307.
7. Kumari GS and Prasad MSV, 2017. Evaluating the Financial Performance of Select Indian Banks Using Eagles Model. IUP Journal of Accounting Research & Audit Practices, Vol. 16, No. 2, p. 43.
8. Mohanty A and Mohanty T, 2021. Social Obligation Vs. Profitability- System Paradox. Siddhant - A Journal of Decision Making, Vol. 21, No. 1, pp. 23-29.
9. Mohanty K, 2015. Non Performing Assets In Buyers And Lenders Perspective In Educational Loans. Al Barkaat Journal of Finance & Management, Vol. 7, No. 2, pp. 10-23.
10. Mohanty, Goyal and Kumar, 2015. An empirical study of the sustainable growth in the commercial banks of Indian banking system. National seminar on emerging global perspective towards business leadership: Challenges and Opportunities, Amity University, Gwalior, Madhya Pradesh.
11. Moyer SE, 1990. Capital adequacy ratio regulations and accounting choices in commercial banks. Journal of Accounting and Economics, Vol. 13, No. 2, pp. 123-154.
12. Patel R, 2018. Pre & post-merger financial performance: An Indian perspective. Journal of Central Banking Theory and Practice, Vol. 7, No. 3, pp. 181-200.
13. Singh VR, 2016. A Study of Non-Performing Assets of Commercial Banks and it’s recovery in India. Annual Research Journal of SCMS, Vol. 4, No. 2, pp. 110-125