Revisiting Structural Transformations in Indian Banking Sector

Structural changes in the Indian banking sector in the past few decades have reshaped the banking industry in India. Changes such as consolidations, mergers, technological up-gradations, changes in ownership and number of firms in the market, have replaced the dominance of the public sector banks with the competition among public, private and foreign sector banks. All this has impacted the market concentration and competition as well. The present paper measures the extent of market concentration in Indian banking sector for the period 1997-2017 using Herfindahl Herischman Index and k-bank concentration ratios in terms of total assets, deposits and advances. We find the result in support of decreasing concentration and intensifying competition during the study period.