The Indian banking industry has come from a long way from being passive business institution to a highly proactive and dynamic entity. Before liberalization, the Indian banking structure was largely controlled and parameters like branch size and location were given much importance. Presently, the Indian banking industry is going through a period of intense change, where liberalized business environment has affected the banking business by way of increasing competition, rising customer expectations, shrinking spreads and increasing disintermediation. Public sector banks largely dominate the Indian banking industry; however, their share has been declining. Their inefficiencies came into picture only when the market was thrown open for competition and new glares started eating up their share. The setting up of a new competitive environment has resulted in new challenges for the public sector banks to retain their share. Ongoing changes in the structure of Indian banking are clearly visible. While the share of public sector banks in the total assets of the banking sector has shown a steady decline, the new private sector banks and foreign banks have succeeded in enhancing their position. - See more at: http: //pothi.com/pothi/book/sanjaykumar-d-paramar-public-sector-banks-india-and-liberalization#sthash.TuC4XXld.dpu