The banking industry is the backbone of any country. It helps to improve the economic development of the country by advancing the needy and also helps for capital formation, resulting into increasing the employment opportunities. The author intends to study the various risks faced by the banking industry especially after impact of subprime crisis in 2008over the world economy and its repercussions in the Indian economy. It has been therefore decided to have an in depth knowledge taken by the developed countries after 1988 in the form of Basel accord . Initially Basel norms were implemented by G-10 countries which include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, Netherlands, Spain., Sweden, and Switzerland. U.K & U.S.A., accordingly banks with international presence were required to hold capital of 8% of risk weighted assets.