The banking industry is tied to IT in the age of Globalisation in India

Abstract

There is a growing body of research that examines the micro and institutional implications of bank globalisation, looking at things like profitability, expenses, the net interest margin and other performance indicators. The present paper describes the link between globalisation and the banking system in association with the IT sector. Despite the fact that domestic banks are less efficient, the introduction of international banks has boosted the efficiency of the banks. On the other hand, increasing IT expertise shows that depicts the best performance in the banking system. It is further found that the impact of globalisation is preferably dependent on the institutional regime and regulatory framework of India. Private banks are performing better in comparison to public sector banks. Also, the private sector banks are much more techno-friendly than the public sector banks in India. The banking system is being centralised because of the IT sector and the increment in its efficiency has been observed.