1.

Introduction

2.

Forces Shaping the Environment

3.

Operational and Strategic Responses

4.

Challenges

5.

The Way Forward

Chapter II: Global Banking Developments

1.

Introduction

2..

Global Banking Trends

3.

Banking Trends in Select Regions and Countries

4.

Analysis of the Performance of Top 100 Global Banks

5.

Global Policy Reforms

6.

Overall Assessment

Chapter III: Policy Environment

1.

Introduction

2.

Monetary Policy

3.

Credit Delivery

4.

Financial Inclusion

5.

Prudential Regulatory Policy

6.

Supervisory Policy

7.

Regional Rural Banks

8.

Co-operative Banks

9.

Non-Banking Financial Companies

10.

Customer Service in Banks

11.

Financial Markets

12.

Payment and Settlement Systems

13.

Technological Developments

14.

Banking Sector Legislation

15.

Overall Assessment

Chapter IV: Operations and Performance of Commercial Banks

1.

2.

Balance Sheet Operations of Scheduled Commercial Banks

3.

Financial Performance of Scheduled Commercial Banks

4.

Soundness Indicators

5.

Sectoral Deployment of Bank Credit

6.

Operations of Scheduled Commercial Banks in Capital Market

7.

Shareholding Pattern in Scheduled Commercial Banks

8.

Foreign Banks’ Operations in India and Overseas Operations of Indian Banks

9.

Technological Developments in Scheduled Commercial Banks

10.

Customer Service

11.

Financial Inclusion

12.

Local Area Banks

13.

Regional Rural Banks

14.

Overall Assessment

Chapter V: Developments in Co-operative Banking

1.

Introduction

2.

Urban Co-operative Banks

3.

Rural Co-operatives

4.

Progress on Licensing of Rural Co-operatives

5.

Progress relating to Revival of Rural Co-operatives

6.

Progress relating to Rural Credit Measures that have Specific Implications for Co-operatives

7.

Overall Assessment

Chapter VI: Non-Banking Financial Institutions

1.

Introduction

2.

Financial Institutions

3.

Non-Banking Financial Companies

4.

Primary Dealers

5.

Overall Assessment

List of Boxes

I.1

Technological Innovations and Efficiency Gains in the Banking Sector

I.2

Bilateral Memorandum of Understanding (MoU) with Reserve Bank’s Overseas Counterparts for Improved Cross-Border Supervision and Co-operation

II.1

Issues in LIBOR Fixation and Implications for Banks

II.2

Eurozone Crisis and the Sovereign-Bank Nexus: Sovereign Rating Downgrades and Implications for Global Banking System

III.1

Unique Customer Identification Code for Banks’ Customers in India

III.2

White-Label ATMs (WLAs)

IV.1

What Drives the Profitability of Indian Banks?: A Du Pont Analysis for Bank Groups

IV.2

Bank Lending to Infrastructure and Asset-Liability Mismatches: How Strong is the Linkage?

IV.3

Priority Sector Lending – is there a Bias towards Bigger Credit Needs?

IV.4

Changing Trend of the Payment Systems from Cash to Cashless

V.1

An Analysis of Market Concentration within the UCB Sector

V.2

Weakening Long-Term Co-operative Credit Structure: A Comparative Analysis of the Apex-Level Institutions

V.3

Reforms for the Revival of Short-term Rural Co-operatives

VI.1

Micro Finance Institutions (Development and Regulation) Bill, 2012 and its Impact on Microfinance Sector

VI.2

Guidelines on Fair Practices Code for NBFCs

List of Tables

II.1

Return on Assets of Banks for Select Countries

II.2

Growth in International Assets and Liabilities of Banks

II.3

Capital to Risk-Weighted Assets Ratio of Banks in Select Countries

III.1

Agricultural Debt Waiver and Debt Relief Scheme

III.2

Phase-wise Timeline for Basel III Implementation

IV.1

Consolidated Balance Sheet of Scheduled Commercial Banks

IV.2

Growth in Balance Sheet of Scheduled Commercial Banks

IV.3

Non-SLR Investments of Scheduled Commercial Banks

IV.4

International Liabilities of Banks - by Type

IV.5

International Assets of Banks Classified by Type

IV.6

Maturity (Residual) and Sectoral Classification of Consolidated International Claims of Banks

IV.7

Consolidated International Claims of Banks on Countries other than India

IV.8

Bank Group-wise Maturity Profile of Select Liabilities/Assets (As at end-March)

IV.9

Trends in Income and Expenditure of Scheduled Commercial Banks

IV.10

Return on Assets and Return on Equity of SCBs – Bank Group-wise

IV.11

Cost of Funds and Returns on Funds - Bank Group-wise

IV.12

Capital to Risk-Weighted Assets Ratio under Basel I and II – Bank Group-wise (As at end-March)

IV.13

Component-wise Capital Adequacy of SCBs (As at end-March)

IV.14

Trends in Non-Performing Assets - Bank Group-wise

IV.15

NPAs of SCBs Recovered through Various Channels

IV.16

Details of Financial Assets Securitised by SCs/RCs

IV.17

Trends in Provisions for Non-Performing Assets – Bank Group-wise

IV.18

Classification of Loan Assets - Bank Group-wise

IV.19

Sector-wise NPAs of Domestic Banks

IV.20

Sectoral Deployment of Gross Bank Credit

IV.21

Priority Sector Lending by Banks (As on last reporting Friday of March 2012)

IV.22

Retail Portfolio of Banks

IV.23

Public Issues from the Banking Sector

IV.24

Resources Raised by Banks through Private Placements

IV.25

Risk-Return Performance, Turnover and Capitalisation of Bank Stocks

IV.26

Number of Public Sector Banks Classfied by Percentage of Private Shareholding (As at end-March 2012)

IV.27

Overseas Operations of Indian Banks (As at end-March)

IV.28

ATMs of Scheduled Commercial Banks (As at end-March 2012)

IV.29

Credit and Debit Cards Issued by Scheduled Commercial Banks (As at end-March)

IV.30

Volume and Value of Electronic Transactions by SCBs

IV.31

Region-wise Complaints Received at Banking Ombudsman Offices

IV.32

Select Indicators of Financial Inclusion-Cross Country Comparison

IV.33

Region-wise and Population Group-wise New Bank Branches Opened During 2011-12

IV.34

Number of ATMs of SCBs at Various Locations (At end-March 2012)

IV.35

Progress in Road Map for Providing Banking Outlets in Villages with Population of more than 2000 (As on March 31, 2012)

IV.36

Progress under Financial Inclusion Plans

IV.37

Progress of Micro-finance Programmes (As at end-March)

IV.38

Profile of Local Area Banks (As at end-March)

IV.39

Financial Performance of Local Area Banks

IV.40

Consolidated Balance Sheet of Regional Rural Banks

IV.41

Financial Performance of Regional Rural Banks

IV.42

Purpose-wise Distribution of Credit from Regional Rural Banks

V.I

Tier-wise Distribution of Urban Co-operative Banks (As at end-March 2012)

V.2

Rating-wise Distribution of UCBs (As at end-March 2012)

V.3

Distribution of UCBs by Deposits and Advances

V.4

Liabilities and Assets of Urban Co-operative Banks

V.5

Investments by Urban Co-operative Banks

V.6

Financial Performance of Scheduled and Non-Scheduled Urban Co-operative Banks (As at end-March 2012)

V.7

Select Indicators of Profitability of UCBs

V.8

Non-Performing Assets of UCBs

V.9

Distribution of UCBs by CRAR (At end-March 2012)

V.10

Composition of Credit to Priority Sectors by UCBs (As at end-March 2012)

V.11

Distribution of Districts and Banking Business of UCBs across Regions

V.12

Volume of Banking Business per Branch for UCBs by Region

V.13

A Profile of Rural Co-operatives (As at end-March 2011)

V.14

Liabilities and Assets of State Co-operative Banks (At end-March 2011)

V.15

Trends in Select Balance Sheet Indicators of Scheduled State Co-operative Banks .

V.16

Financial Performance of State Co-operative Banks

V.17

Soundness Indicators of State Co-operative Banks

V.18

Liabilities and Assets of District Central Co-operative Banks

V.19

Financial Performance of District Central Co-operative Banks

V.20

Soundness Indicators of District Central Co-operative Banks

V.21

Primary Agricultural Credit Societies - Select Balance Sheet Indicators

V.22

Liabilities and Assets of State Co-operative Agriculture and Rural Development Banks

V.23

Financial Performance of State Co-operative Agriculture and Rural Development Banks

V.24

Asset Quality of State Co-operative Agriculture and Rural Development Banks .

V.25

Liabilities and Assets of Primary Co-operative Agriculture and Rural Development Banks

V.26

Financial Performance of Primary Co-operative Agriculture and Rural Development Banks

V.27

Asset Quality of Primary Co-operative Agriculture and Rural Development Banks

VI.1

Ownership Pattern of Financial Institutions (As on March 31, 2012)

VI.2

Financial Assistance Sanctioned and Disbursed by Financial Institutions

VI.3

Liabilities and Assets of Financial Institutions (As at end-March)

VI.4

Resources Mobilised by Financial Institutions

VI.5

Resources Raised by Financial Institutions from Money Market (As at end-March 2012)

VI.6

Pattern of Sources and Deployment of Funds of Financial Institutions

VI.7

Weighted Average Cost and Maturity of Rupee Resources Raised by Select Financial Institutions

VI.8

Long-term PLR Structure of Select Financial Institutions .

VI.9

Financial Performance of Select All India Financial Institutions

VI.10

Select Financial Parameters of Financial institutions

VI.11

Net Non-Performing Assets (As at end-March)

VI.12

Asset Classification of Financial Institutions

VI.13

Capital to Risk (Weighted) Assets Ratio of Select Financial Institutions (As at end-March) .

VI.14

Ownership Pattern of NBFCs (As on March 31, 2012)

VI.15

Profile of NBFCs

VI.16

Consolidated Balance Sheet of NBFCs-D

VI.17

Major Components of Liabilities of NBFCs-D by Classification of NBFCs

VI.18

Public Deposits held by NBFCs-D by Deposit Ranges

VI.19

Public Deposits held by NBFCs-D - Region-wise

VI.20

Public Deposits held by NBFCs-D - Deposit Interest Rate Range-wise

VI.21

Maturity Pattern of Public Deposits held by NBFCs-D

VI.22

Sources of Borrowings by NBFCs-D by Classification of NBFCs

VI.23

Major Components of Assets of NBFCs-D by Classification of NBFCs

VI.24

Assets of NBFCs-D by Asset-Size Ranges (As at end-March)

VI.25

Break-Up of Assets of NBFCs-D by Activity

VI.26

Financial Performance of NBFCs-D .

VI.27

NPA Ratios of NBFCs-D .

VI.28

NPAs of NBFCs-D by Classification of NBFCs

VI.29

Classification of Assets of NBFCs-D by Category of NBFCs

VI.30

Capital Adequacy Ratio of NBFCs-D

VI.31

Net Owned Fund vis-à-vis Public Deposits of NBFCs-D by Classification

VI.32

Range of Net Owned Fund vis-à-vis Public Deposits of NBFCs-D

VI.33

Profile of RNBCs

VI.34

Public Deposits Held by RNBCs - Region-wise

VI.35

Investment Pattern of RNBCs

VI.36

Consolidated Balance Sheet of NBFCs-ND-SI

VI.37

Borrowings of NBFCs-ND-SI Sector by Region

VI.38

Financial Performance of NBFCs-ND-SI Sector

VI.39

NPA Ratios of NBFCs-ND-SI Sector .

VI.40

Capital Adequacy Ratio of NBFCs-ND-SI - By Type of NBFC

VI.41

Bank Exposure of NBFCs-ND-SI Sector

VI.42

Performance of the PDs in the Primary Market (At end-March) .

VI.43

Performance of Standalone PDs in the Secondary Market (At end-March)

VI.44

Sources and Applications of Funds of Standalone Primary Dealers

VI.45

Financial Performance of Standalone Primary Dealers

VI.46

Financial Indicators of Standalone PDs

VI.47

CRAR of the standalone PDs (At end-March)

List of Charts

II.1

Global Macroeconomic Trends

II.2

Three-Month Moving Average of Bank Credit Growth, in per cent

II.3

Sovereign and Bank CDS Spreads in Select Economies

II.4

Bank Stock Indices in Select Economies/Economy Groups

II.5

Leverage in the Banking Systems of Select Economies

II.6

Asset quality of Banks in Select Economies.

II.7

Progress in the US Banking System

II.8

Sectoral Credit and Delinquency of US Banks

II.9

European Banks Funding Structure and Inter-Bank Market

II.10

LTRO and Loans to Private Sector in the Euro Area

II.11

European Banks’ Exposure to Greece

II.12

UK Banks’ Lending to Private Non-Financial Corporations

II.13

Chinese Banking Indicators

II.14

Location of Global Banking Statistics

II.15

Share of Countries in Total Assets of Top 100 Global Banks

II.16

Percentage Distribution of Top 100 Global Banks by Return on Assets

II.17

Percentage Distribution of Top 100 Global Banks By CRAR

II.18

Percentage Distribution of Top 100 Global Banks by Capital to Assets Ratio (CR)

II.19

Percentage Distribution of Top Global Banks by NPL Ratio

II.20

Changes in Soundness Indicators of Top Global Banks

IV.1

Share of Bank Groups in Total Liabilities/Assets of SCBs (end-March 2012) .

IV.2(A)

Share of CASA Deposits in Total Deposits (end-March)

IV.2(B)

Composition of Deposits (end-March 2012)

IV.3

Incremental C-D and I-D Ratios of SCBs

IV.4

Bank Group-wise Incremental C-D and I-D Ratios (end-March 2012)

IV.5

Trend in Maturity Profile of Assets and Liabilities (as at end-March)

IV.6

Off-balance Sheet Exposure (notional) as percentage of On-balance sheet Liabilities (as at end-March)

IV.7

Trend in Efficiency Indicators

IV.8(A)

Cost of Funds

IV.8(B)

Return on Funds

IV.9(A)

Distribution of Banks According to CRAR (end-March 2012)

IV.9(B)

Tier I CRAR of PSBs (end-March 2012) .

IV.10

Trend in Capital Adequacy (end-March 2012)

IV.11

Growth Rates of NPAs vis-à-vis Advances.

IV.12

Gross NPAs as Percentage of Gross Advances

IV.13

Trend in Important Ratios Relating to NPAs

IV.14.

Bank Group-wise Ratios Relating to NPAs (end-March 2012)

IV.15

Restructured Advances as per cent of Gross Advances of SCBs (end-March)

IV.16

Restructured Advances as per cent of Gross Advances: Bank Group-wise (end-March)

IV.17(A)

Gross NPA Ratio (Priority Sector): Bank Group-wise

IV.17(B)

Gross NPA Ratio (Non-Priority Sector) Bank Group-wise

IV.18

Percentage Composition of NPAs of SCBs (end-March 2011 and 2012)

IV.19

Trend in Infrastructure Credit

IV.20.

Priority Sector Lending by Public Sector Banks (end-March 2012)

IV.21

Relative Performance of Bankex and BSE Sensex 2011-12

IV.22

Government Shareholding in Select Public Sector Banks (end-March 2012)

IV.23(A)

Number of Credit / Debit Cards Outstanding

IV.23(B)

Share of Bank Groups in Total Credit / Debit Cards (as at end-March 2012)

IV.24(A)

Bank Group-wise Break-up of Major Complaint Types 2011-12

IV.24(B)

Share of Bank Groups in Total Complaints

IV.25(A)

Share of Population Groups in Increment of ATMs: 2011-12

IV.25(B)

Share of Regions in Total Number of New ATMs opened: 2011-12

IV.26(A)

Share of Bank Groups in News Banking Outlets Opened in Villages with Population >2000 (end-March 2012)

IV.26(B)

Composition of Public Sector Banks having Banking Outlets in Villages with Population >2000 (end-March 2012)

IV.27

Trend in Profitability of RRBs

V.1

Structure of Co-operative Credit Institutions in India (As at end-March 2012)

V.2

Number and Composition of UCBs based on Financial Strength

V.3.

Progress of Consolidation of the UCB Sector in Each State, At end-March 2012

V.4

Tier-wise Composition of UCBs .

V.5

Distribution of UCBs by Size of Assets

V.6

Growth in Assets of UCBs

V.7

Share of Scheduled and Non-Scheduled UCBs in Total Assets of UCB Sector

V.8

Credit-Deposit and Investment-Deposit Ratios for UCBs compared with SCBs

V.9.

Gross NPA Growth and Ratio

V.10

Provisioning Coverage Ratio of UCBs

V.11

Distribution of UCBs by CRAR, 2012

V.12

Percentage Distribution of Credit to Select Priority Sectors by UCBs

V.13

Percentage Distribution of Credit to Weaker Sections by UCBs

V.14

Composition of Rural Co-operative Credit Structure by Short and Long-term Credit Co-operatives

V.15

Profitability of Rural Co-operative Credit Institutions

V.16

Indicators of Financial Health of StCBs

V.17

Financial Health of StCBs by Region

V.18

Indicators of Financial Health of DCCBs

V.19

Financial Health of DCCBs by Region

V.20

Comparison of Financial Health of StCBs and DCCBs

V.21

Growth in Credit Outstanding from PACS

V.22

Borrower-to-Member Ratio of PACS

V.23

Percentage of PACS in Profit and Loss

V.24

Comparison of NPA Ratio of SCARDBs with other Co-operative and Commercial Banking Institutions

V.25

A Regional Comparison of Financial Health of SCARDBs

V.26

Profitability Indicators of PCARDBs

V.27

Financial Health of PCARDBs compared with SCARDBs

V.28

Shares of Rural Credit Institutions in Total KCCs issued

V.29

Share of Rural Credit Institutions in Direct Agricultural Credit

VI.1

Number of NBFCs Registered with the Reserve Bank .

VI.2

Ratio of Public Deposits of NBFCs to Broad Liquidity (L3) and Aggregate Deposits of SCBs

VI.3

Share of Public Deposits held by NBFCs-D by deposits Ranges

VI.4

Share of Public Deposits held by NBFCs-D: Region-wise

VI.5

Public Deposits held by NBFCs-D - Deposit Interest Rate Range-wise (Per cent)

VI.6

Maturity Pattern of Public Deposits held by NBFCs-D (Per cent)

VI.7

Financial Performance of NBFCs-D

List of Appendix Tables

IV.1

Indian Banking Sector at a Glance

IV.2

Off-Balance Sheet Exposure of Scheduled Commercial Banks in India

IV.3

Bank Group-wise Lending to the Sensitive Sectors

IV.4

Share Prices and Price/ Earning Ratios of Bank Stocks at BSE (As on the last Reporting Friday of March)

IV.5

Shareholding Pattern of Domestic Scheduled Commercial Banks (As at end-March 2012)

IV.6

Branches and ATMs of Scheduled Commercial Banks (As at end-March 2012)

IV.7

Statement of Complaints Received at Banking Ombudsman Office

IV.8

Credit-Deposit Ratio and Investment plus Credit-Deposit Ratio of Scheduled Commercial Banks –Region/State-wise

V.1

Select Financial Parameters of Scheduled UCBs

V.2

Major Indicators of Financial Performance of Scheduled UCBs

V.3

State-wise Distribution of UCBs (As at end-March 2012)

V.4

Salient Indicators of Financial Health of State Co-operative Banks - Region and State-wise (As at end-March)

V.5

Salient Indicators of Financial Health of District Central Co-operative Banks - Region and State-wise (As at end-March)

V.6

Select Indicators of Primary Agricultural Credit Societies - State-wise (As at March 31, 2011)

V.7

Salient Indicators of Financial Health of State Co-operative Agriculture and Rural Development Banks - State-wise (As at end-March)

V.8

Salient Indicators of Financial Health of Primary Co-operative Agriculture and Rural Development Banks - State-wise (As at end-March)

V.9

Kisan Credit Card Scheme: State-wise Progress (As at end-March 2012)

VI.1

Financial Assistance Sanctioned and Disbursed by Financial Institutions

VI.2

Financial Performance of Primary Dealers

VI.3

Select Financial Indicators of Primary Dealers