Structural Changes in the Indian Banking

Structural change in an economy takes place mainly along two dimensions: one along sectoral shares and another along work force shares engaged in these sectors. In addition to labour and capital, the technological changes play an important role in the structural change. The technological change brings about an increase in per capita income, either by reducing the amount of inputs per unit of output or by yielding more output for a given amount of input. Technological change in an economy refers to changes in the input output relations of production activities. In India, the share of tertiary sector in the gross domestic product has already crossed the fifty five percent marks. The excessive growth of tertiary sector and its effect on economic growth, employment and sustainability of the system has become a matter of concern. The main objective of the study is to analyze the nature, structure and growth of banking sector in India. Regard research methodology, secondary data will be used and the required secondary data has been obtained from financial statements of various banks, the reports of RBI, banking journals, Indian Banks Association publications, Centre for Monitoring Indian Economy database and other web portals. For analysis of the above data, tabular analysis has been supported. This research has significant policy implication for countries with a large services sector as well as for countries where the service sector is increasing rapidly.