A globally competitive economy requires a robust and competitive banking system. The present banking system is a result of reforms and policy changes that have taken place in the past. Pre-1991, India had nationalized banks in two phases in 1969 and 1980. It meant that public sector banks (PSBs) controlled the credit supply. The post-1991 period can be thought of in three distinct chronological phases. The first one was roughly from 1991 to 1998. The second started from 1998 and continued until the beginning of global financial crisis. The third we believe is an ongoing process. This paper focuses on India’s banking sector, which has been attracting increasing attention since 1991 when financial reform programme was launched. This paper throws light on some of the developments that have taken place in the Indian banking sector as a result of process of banking reforms initiated in 1992.