An Essay on Banking and Macroeconomics: Role of Public Sector Banks in India

17 Pages Posted: 9 Dec 2016

See all articles by Charan Singh

Charan Singh

Indian Institute of Management (IIMB), Bangalore

Date Written: December 8, 2016

Abstract

In India, banks have played an important role in economic growth and development. Since the 1970s, public sector banks (PSBs) have been in the forefront of mobilizing resources from far flung rural areas as well as extending banking services in the remotest parts of the country. The burden of social agenda has largely been shouldered by PSBs without any compensation. Therefore, in the interest of maintaining credibility of PSBs which account for nearly 70 percent of banking activity in the country, the government is justified in recapitalizing the PSBs regularly. However, there is need to undertake research on evolving appropriate norms, granular, for evaluating performance of different banks operating in India without stifling flow of credit to productive sectors.

Keywords: Public Sector Banks, Non-Performing Assets, Stressed Assets, Priority Sector Lending

Suggested Citation

Singh, Charan, An Essay on Banking and Macroeconomics: Role of Public Sector Banks in India (December 8, 2016). IIM Bangalore Research Paper No. 530, Available at SSRN: https://ssrn.com/abstract=2882429 or http://dx.doi.org/10.2139/ssrn.2882429

Charan Singh (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India
080-26993818 (Phone)

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