Banks play an important role in economic development, as they accept
deposits and channelize them into lending activities. Indian has a
well-developed banking system, with most of the banks having been
founded by Indian entrepreneurs and visionaries in the pre-independence
era. Indian banks have played a significant role in the development of the
Indian economy by inculcating the habit of savings and lending finance to
Indian industry. The banking industry in India is facing certain challenges,
such as quality service, customer satisfaction, customer retention, and
customer loyalty. However, due to nationalization exercises in 1969 and
1990, banks have increased their network at a brisk pace, with the number
of branches at the end of 2008 standing at 38046. As on 31.03.2013, there
were 70421 branches.