1. Financial Sector Reforms: an Unfinished Agenda
7th International Banking & Finance Conference 2013
“Road to Recovery and Growth – Role of Banks and Financial Sector”
Mumbai, June 5, 2013
Ashima Goyal
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i

2. Structural Transformation
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i
Structural Transformation

3. India: Changing banks and markets
2000
2010
Gross NPA
11.4
2.4
CRR
8.5 5
CRAR (Capital adequacy)
13.6
RoA (Return on Assets) (CMIE)
0.49
1.1
Credit GDP ratio (%)
24.3
50.1
Credit deposit ratio (%)
53.1
75.7
Daily turnover FX market (USD b) 3 60
Monthly turnover in Gsec market (USDb)
Central Govt. dated security
15.7
96.4
91 days Tbill
0.33
8.4
Monthly turnover call money market (USDb)
65.1
39.8
Source: RBI, CMIE, IFS
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i

4. Bank nonperforming loans to total gross loans (%)
Source : Calculated from World Bank dataset
LAF daily:
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5. I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i
Risks

6. Spreads between 3 month T-Bill and inter-bank rates
Spreads between bank rate and lending rate
Source : Calculated from RBI
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i

7. Volatile constituents of capital flows
Banks off -balance sheet items (Rs. Crs)
Source : Report on trend and progress of banking in India, RBI (2011)
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8. India: FPI and BSE sensex
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9. India: FPI and BSE sensex
I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i

10. I n d i r a G a n d h i I n s t i t u t e o f D e v e l o p m e n t R e s e a r c h, M u m b a i
Thank you