Abstract
Banks in a financial system play the important role of financial intermediation. It is the banking sector that forms the basis of financial institutionalization in a country and transforms savings into investments. Banks pool savings from fund surplus sources mainly households and allocate to the government and industries thereby effectively allocating savings for domestic capital formation. Banks in this way also offer risk free investment avenue for depositors. The paper focuses on the financial analysis of IDBI Bank which merged with its DFI (Development Financial Institution) unit in the post liberalization period with a view to ascertain whether the financial sector reforms have adversely affected the functioning of the Bank.
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