The paper empirically investigates the reasons behind poor asset quality of the Indian banks. The substandard asset quality is due to skewed nature of GDP distribution with service sector contributing around 53% of GDP. The efficiency of the said sector is attributable to deployment of strategic...

Based on ‘ agency theory' the present study argues that in a negotiated and collateral security based debt financing system where the need for debt financing of the firms is largely met by the banks in absence of active and liquid corporate debt market , there should be a two way relationship...