BANKING INDUSTRY OF INDIA AND RECENT TRENDS

This paper analyzes the trends in financing and investing activities of companies in India in the recent past. While looking at the available trends, we have also tried to give a broad outlook for these in the near future. The first part deals with the financing options available to Indian companies. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so tupendous that it has no parallel in the annals of banking anywhere in the world.The banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the change in the type of organizations that dominate the landscape. Since the eighties, banks have increased the scope and scale of their activities and several banks have become very large institutions with a presence in multiple regions of the country.' The paper examines the new trends in commercial banking. We believe that loans from banks and related financial institutions will continue to be used by companies to raise capital. Therefore we have focused on other emerging alternatives for companies to finance their investment needs. Some of these are private equity, ECBs and alternative investment markets. Private Equity in India has been growing at a rapid pace mainly due to the booming Indian economy and the Bull Run.