A critical study of performance evaluation of Indian FDI and Non-FDI banks
Dr. Shashi Kapur Das
The present analysis studied the impact of FDI Policy on Indian Banking Sector. The impact is measured by two ways. First, it gauges the impact on the banking sector as a whole by studying public sector and private sectors banks together and then by studying public sector and private sector banks separately in the light of FDI. Second, the study also further categorizes the banks as Old and New, both in the private and public sector, and tries to gauge the impact of FDI liberalization. It was discussed and now allowed to deregulate FDI restrictions further, e.g. by allowing FDI in retail trade etc. Policymakers in India as well as external observers attach high expectations to FDI. “FDI worked wonders in China and can do so in India”. The impact is measured through two main parameters i.e., productivity and profitability of FDI and Non-FDI banks, both in the public and private sectors.