SB Preperation Kit-2

[Things to learn:
1: Reasons for Banking stability in India & Reasons for the Current Economic Crisis:
So, candidates have to go deeply and find out the reasons of sound banking industry in India as well as the reasons for this currently going crisis. source:SB INT PREPERATION]

Things to ponder:
1: The Banking sector
Indian Banking Sector

2: Points regarding the Indian Banking Industry .
Indian Banking Sector in Current Financial Crisis

3: About the sector in which they wants to enter and why?.
Opportunities in Indian Banking Sector

The Indian banking industry is currently termed as strong, having weathered the global economic slowdown and showing good numbers with strong support flowing in from the Reserve Bank of India (RBI) measures.
Banking, financial services and insurance (BFSI), together account for 38 per cent of India’s outsourcing industry (worth US$ 47.8 billion in 2007). According to a report by McKinsey and NASSCOM, India has the potential to process 30 per cent of the banking transactions in the US by the year 2010. Outsourcing by the BFSI to India is expected to grow at an annual rate of 30–35 per cent.
Furthermore, a report “Opportunities in Indian Banking Sector”, by market research company, RNCOS, forecasts that the Indian banking sector will grow at a healthy compound annual growth rate (CAGR) of around 23.3 per cent till 2011.
According to a study by Dun & Bradstreet (an international research body)—”India’s Top Banks 2008″—there has been a significant growth in the banking infrastructure. Taking into account all banks in India, there are overall 56,640 branches or offices, 893,356 employees and 27,088 ATMs. Public sector banks made up a large chunk of the infrastructure, with 87.7 per cent of all offices, 82 per cent of staff and 60.3 per cent of all ATMs.
According to the RBI, Indian financial markets have generally remained orderly during 2008-09. In view of the tight liquidity conditions in the domestic money markets in September 2008, the Reserve Bank announced a series of measures beginning September 16, 2008. Thus, the average call rate which was at 10.52 per cent declined to 7.57 per cent in November 2008 under the impact of these measures.
Measures aimed at expanding the rupee liquidity, included significant reduction in the cash reserve ratio (CRR), reduction of the statutory liquidity ratio (SLR), opening a special repo window under the liquidity adjustment facility (LAF) for banks for on-lending to the non-banking financial companies (NBFCs), housing finance companies (HFCs) and mutual funds (MFs), and extending a special refinance facility, which banks could access without any collateral.