Samriti Kapoor

Basel norms are international regulatory guidelines which have been introduced, updated and revised from time to time considering the need for more sound and stable banking system. Presently, Basel III has come into the scene in the wake of financial turmoil and inability of Basel II to address risks faced by banks. The purpose of the present study is to conduct a SWOT analysis of Basel III framework in order to find out its strengths, weaknesses, opportunities and major threats. The study also performs TOWS analysis to facilitate cross-matching among strengths, weaknesses, opportunities and threats. The study suggested that as Basel III is a global risk management phenomenon; hence Indian banks have to accept it to achieve harmonization with international standards. Thus, banks have to devise smart alternative strategies to implement it, as its adoption will ultimately benefit soundness and profitability of banks in the long run.

The financial reforms initiated in the year 1991 posed a lot of challenges before the Indian banking sector; one of the major challenges faced by retail banking deals with the customer satisfaction and loyalty. Today’s banking customers have become more aware and rational in their approach than ever. Customer satisfaction and formulation of marketing strategies to attract more and more customers towards the banks are now becoming a key issue in order to survive in the competitive banking industry for every bank. The current study is an attempt to find out the gap between the expected and the perceived satisfaction levels of bank customers. For the purpose of the study, data were collected through primary sources by framing a questionnaire on the basis of SERVQUAL scale and review of literature. To analyse the collected data, Gap Analysis and t-test have been employed. The results of the study bring out the major differences in customers’ expectations and perceptions from banking services, thus showing dissatisfaction among bank customers.

The stability of International banking system has emerged as a key concern for regulators in rapidly changing global banking scenario. In order to strengthen the soundness and stability of banks, Basel Committee on Banking Supervision (BCBS) came out with a comprehensive, flexible and risk sensitive framework known as Basel II. This paper attempts to assess in detail the role of Reserve Bank of India, in implementation of Basel II framework in Indian banking Scenario. For this purpose, Annual reports of Reserve Bank of India for the period 2002–03 to 2009–2010 have been analyzed in detail. The study has indicated that RBI has taken significant and structural initiatives to implement the Basel II norms in Indian financial system. It also gives glimpse of New Capital Adequacy framework to strengthen the banking structure. The study further throws light on challenges faced by Indian banking industry for the purpose of envisaged implementation of Basel II Accord.