Is the Impact of Banking reforms really affecting the Indian economy?

You know that funds are blood for the economy, it should reach all parts of the body, similar is the case for economy too, funds should reach all parts of the economy for balanced growth. So economy is very sensitive depending on availability of funds,it reacts showing its developmets either positively or negatively.

Reforms in the sector shall be effective to show positive reactions, today's news paper reported that Mody's reported  Indian banking sector is in gloomy position. What could be the reasons, may be due to adverse effects of the global tendancy. Considering all these aspects, I agree with the view expressed by the author.

In my view, efficiency in Indian banking has improved on a number of parameters in the post-reform period — return on assets, non-performing loans as a proportion of total loans or assets, operating costs as a proportion of assets or income. As for greater entry of foreign banks, this is largely an academic matter for the next couple of years, given the current state of the leading international banks. Most of these banks are so busy sorting out their problems that they are unlikely to have the appetite for entering into or expanding in India in the near future.