It is useful to note that the policy preferences of RBI in the banking sector, which are aimed to address issues of targeted allocation of credit and penetration of banking services have not adversely affected the improvements in accounting practices, reduction in nonperforming assets and improvements in profitability as well as capital adequacy.
It is useful to note that the valuation of bank stocks, of both public and private sector, are improving while foreign banks gather a fast increasing proportion of their global profits from Indian operations. Beyond credit: financial inclusion In the reform process that commenced in 1992, the reform of financial sector was early in the cycle.