Indian Banks: Transformation Through E-Delivery Channels – Challenges and Opportunities

The severe crises of 1991 gave birth to the new economic thought in the country. A bundle of measures were taken to remove the various deficiencies and rigidities in the Indian economy. Hence, new economic policy was introduced to mold the Indian economy to the right path. Financial sector reforms and banking sector reforms are the part and parcel of economic reforms, which strengthen the economic reforms. Under the regime of banking sector reforms, IT Act of 1999 gave new dimensions to the Indian banking sector. IT has created transformation in banking structure, business process, work culture and human resource development. It affected the productivity, profitability and efficiency of the banks to a large extent.

The present paper analyzes the major parameters of productivity, profitability of major banks in the pre and post e- banking period. The paper concludes that performance of all the banks under study is much better in post-e-banking period and further foreign banks are at the top position, whereas the performance of the public sector banks is comparatively very poor. The paper suggests some measures to tackle the challenges faced by the banks particularly public sector banks. At the end, paper suggests how public sector banks can convert the emerging challenges into opportunities?