The comprehensive assessment should be prepared well in advance; in terms of capital adequacy, the parent companies will have to draw up plans enabling them – with equanimity and right from the word go – to establish the new groups. The participating banks must begin to operate in harmony, under the guidance of the parent company, well before the groups have been formally established.
The social sector expenditure of States has marginally declined to 5 per cent of GDP during the period 1990-91 to 2000-01 as against 5.1 per cent in the 1980s. This has happened despite the fact that there is greater demand on such services in an increasingly more competitive environment.