The analysis of the liabilities side of the balance sheet exhibiting diversity across the Asian panorama is more interesting. Apart from currency and reserve money, liability items like issuance of central bank paper, the use of deposit facilities and changes in government deposits – all of them have an interesting story to tell.
In addition, banks have increasingly adopted technology and accorded greater focus to human resource management. These changes have helped improve efficiency as borne out by various indicators. The profitability of the Indian banking sector has been maintained at about 1.0 per cent in terms of Return on Assets (RoA), even in the post-crisis period.