Funds Management In Banks: A Cost-Benefit Perspective

Abstract

The Indian banking witnessed a paradigm shift in their operations after the financial sector reforms in 1991.  These reforms led to the emergence of new banks, new instruments, new methods of doing business, and finally heightened competition in the banking industry. In this context, it is imperative on the part of the Indian banking industry to strengthen financial base, increase overall efficiency, and improve profitability by designing appropriate funds management policies and practices. This paper examines the profitability of funds management of the select Indian banks with a cost-benefit perspective.