What are the necessary future measures to be taken by the banks to bring the Indian economy on the front foot?

The Banks play a major role in restoring the confidence of the Investors. Still from the impact of the financial crisis, the domestic banks feel uncomfortable in development. For this, the central bank can support the country’s local and foreign banks, and create a “special additional liquidity facility,” that will give banks more access to credit. Further the bank and financial institutions in need may seek additional funds whenever required and at a very affordable rate.

In my opinion, the financial markets are becoming ever more important for economic development. Their quality is a critical determinant of countries' economic stability and of their success in a world of financial globalization. Governments, central banks, regulators, and the private sector have a role to play in promoting strong, resilient, and innovative financial markets.

In India, healthy growth of the assets of commercial banks in the recent period, driven primarily by credit growth and sharp rise in credit-GDP, deposit-GDP and M3-GDP ratios are reflective of significant financial deepening in India, and also when a cross-country perspective is measured by the ratio of bank assets to GDP, financial depth in India among emerging countries have improved significantly but is still lower. Through further financial deepening India can raise the economy further.

In developing country like India, the banks should aggresively follow the micro-credit approach successfullly implemented by Prof. Muhammad Yunus and Grameen Bank of Bangaldesh.