BANKING SECTOR REFORMS AND PERFORMANCE OF COMMERCIAL BANKS IN INDIA

The present study attempts to examine the impact of reforms on the performance of Indian banking sector by covering the period 1991-92 to 2009-10. The paper looks at various performance indicators including branch expansion, non-performing assets, capital-adequacy ratio, net interest income, net profits ratio, operating expenses for the present purpose. Ratio analysis has been done and independent t-test has been employed to compare the performance of banks. It has been found that reforms have significant impact on the performance of banks by improving profitability, productivity and efficiency of banks. There has been improvement in the capital adequacy of banks, reduction in non-performing assets, decline in spreads and increase in net profits of banks.