| dc.description.abstract | Financial systems are a set of various combinations of a well-incorporated and well-developed set
of subsystems that include properly functioning of financial institutions, market instruments, and
services to channel the distribution and allotment of assets effectively and efficiently. Almost
every developing economy has both formal and informal financial sectors. The formal financial
sector consists of organized and appropriately regulated systems to suffice the needs of the
different contemporary fields of the economy. The informal financial sector is an unorganized and
non-regulated system that majorly emphasizes on conventional and rustic segments of society. The
formal financial system has four subsets; (a) Financial markets, (b) Financial institutions, (c)
Financial services, and (d) Financial instruments. Banks are considered most important players in
the credit distribution and building strong economic system. There are differing views regarding
the word "bank" in its current sense's origin. Some authors claim that where the word "bank"
originally came from the French term "bancus" or "Banque," which signifies a bank. They sat on
benches in the market and conducted business. If a banker were unsuccessful, the populace would
smash his "Banque," or bench, signaling the failure of that specific banker. According to some
scholars, "bank" was first taken from the German word "Banck," which meant a combined reserve
company. It was Italianized into "banco" when German rule controlled a significant portion of
Italy. The word "banco" signifies a lot of cash. In modern usage, a "bank" is an organization that
accepts deposits of money to be utilized for lending. According to Section 5(c) of the Banking
Regulation Act of 1949 in India, a bank is defined as a firm that conducts banking activity in India.
In Section 5(b), banking is described as receiving public money and utilizing it for lending or
investing, repayable upon demand or in another manner, and withdraw able by check, draught, or
order or in another form.
There are various categories of banking services in India, such as Public, Private, Regional, Rural,
Cooperative, Foreign, etc. But a large population in India still believes their money is safe in Public
sector banks. The consistency and past credibility of the bank play an essential role in the mind of
a depositor while selecting among the various banks in India.
Information and communication technology (ICT) is now at the center of the banking industry,
which is at the center of every healthy economy. This is very clear that Information and
Communication Technologies (ICT) has emerged as an essential topic in all business domains
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impacting the world economy. Particularly, information and communication technology (ICT) has
completely changed how banks work and provide customer service in the banking sector. Banks
have made significant investments in ICT in an effort to keep up with the pace of global
development, enhance the quality of customer service, and lower transaction costs. ICT networks
that are widely used to supply a variety of goods and services with added value. ICT advancement
significantly influences the creation of more adaptable and user-friendly financial services. ICT
has also influenced many aspects of our society, from enabling people to use online services to
virtual chatting rooms and economic reforms at the world level. ICT has strongly impacted the
financial sector's evolution, including financial markets and banks in India. India is emerging as
one of the biggest economies and has moved forward with implementing different financial sector
reforms, specifically in the banking sector. ICT has played a significant role in bringing these icebreaking changes. Therefore, ICT has backed all the developments and is behind the growth of the
Indian Banking Sector with improved functioning and operations. There have been five significant
stages in the development of the ICT that is main frame Computers, personal computers,
microprocessor, internet, wireless links. POS Banking, Electronic Bill Payments, Internet
Banking, SMS and Telephone Banking, RTGS, NEFT, and other noteworthy ICT applications are
employed extensively in the banking business. In nutshell we can state, India's banking sector has
embraced ICT quickly. There are a number of benefits to this adoption. If we compare this adoption
across several banking categories, it helps to see the diversity. People in India have a great deal of
faith in public sector banks, which have also embraced ICT. However, it is still unknown whether
or not these investments in ICT have increased the banks' earnings. Additionally, it needs to be
determined whether public sector banks differ from one another in terms of Deposits, Profits, or
the use of ICT, or if they should be grouped together. Currently twelve PSU banks are operating
in India. All these banks are different when it comes to technological adoption. Some are adopting
Technology, while others have started to accept this challenge. This study has taken the data for
the last ten years, from 2011-12 to 2020- 21(including all revision till September 2021). This study
will try to determine the variation in the performance of Public sector banks (Deposits and Profits)
so that we can able to analysis weather all public sector banks are same or public sector banks
should be regarded as one unit or different unit. With these study depositors will able to
differentiate between various public sector banks in terms of performance and on the other hands
Public sector banks are able to identify what keys IT adoptions which are impacting the earning of
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PSU banks. This will help them to rationalized these investments in ICT adoption which can bring
more profitability to them. | en_US |
