Impact Of Global Financial Crisis On Indian Banking Sector

The Sub prime Crisis which surfaced around August 2007 had affected Financial Institutions in the United States and Europe. The collapse of the Lehman Brothers in mid September 2008 had aggravated the situation. Being a part of the global financial system Indian Banking sector cannot. remain isolated from the rest of the world, but India escaped direct impact of the global recession because the banks in India were not exposed to toxic agents, that affected the disease elsewhere in the world. The Indian Banks were well placed to weather the impact of global financial crisis. The present study intends to put forth such optimism by studying the impact of global financial crisis on Indian Banking Sector, and suggested to be more transparent, to implement proactive risk management strategy, best corporate governance practices and a shift from capital adequacy to efficient capital management and to adopt process innovative to revies their performances on on-going basis to be more resilient to future crises.