Library Economics

The Committee on Financial System (CFS), popularly known as Narasimham Committee, was set up in 1991 to make recommendations for bringing about the necessary reforms in the financial sector. Narasimham Committee appraised and acknowledged the success and progress of Indian banks since the major banks were nationalized on 19 July 1969. Unfortunately, the developments were witnessed only in the field of expansion and spread of bank branches, generation of huge employment and mobilization of savings rather than also in improvement in efficiency. Besides, corruption, fraud, misutilization in public money, outdated technology, and politicization in policy making were found to be major drawbacks in the real progress of the banks. As the banking sector plays an important and crucial role in the economy of a country for its stabilization and balanced growth, major reforms were urgently needed, after 22 years of nationalization, to revive Indian banks. This was not only in the field of profitability, but also in the overall efficiency, viz., better management of non-performing assets (NPAs), satisfying capital requirements, increased cost effectiveness and control, enhanced customer service, improved technology, establishing competitive interest rate, effective man-power planning, introduction of asset-liability management, better productivity, launching new products, and becoming more competent to face the upcoming challenges and competition from foreign as well as private sector banks in the era of globalization and liberalization.

The objectives of the study are to examine the need and relevance of reforms in Indian banks, to assess the efficiency and profitability of Indian banks during reforms from different perspectives, to discuss various issues of NPA management in the light of reforms, to measure the performance of the banks of West Bengal during the reforms, to analyse the role of information technology and its relevancy in Indian banks in the era of reforms, and to impart necessary suggestions for the improvement of the efficiency and profitability of Indian banks.

Dr Debaprosanna Nandy was born in Kolkata, India in 1971. He has obtained his PhD in Economics as a UGC Fellow from the University of North Bengal, India. He is a Post-graduate in Commerce from Calcutta University. He has also completed his MBA from the Indian Institute of Social Welfare and Business Management (IISWBM), Kolkata, India. He is a Fellow member of The Institute of Cost and Works Accountants of India (ICWAI) and the Institution of Valuers (IOV), India. He is also a Member of the Operational Research Society, UK and Indian Public Health Association (IPHA). Dr. Nandy is the Founder Chairman of Siliguri-Gangtok Chapter of Cost Accountants, ICWAI. He has contributed to many national and international journals, and also attended a large number of national and international Conferences. His present area of interest is Efficiency, Performance and Productivity Study of different organizations.