Economic Growth Is Positively Related To The Stage Of Financial Development. Earlier The Indian Financial System Suffered From Financial Repression . Post-1991, The Liberalisation Process Attempted To Make Credit Institutions Organisationally Strong, Financially Viable And Operationally Efficient By Well-Sequenced Reforms. These Reforms Led To A Heightened Consciousness Of Ownership And Capital Structure, Enhanced Competition, Increased Autonomy, Technological Upgradation And Performance Change. Achievement Of Competitive Advantage Requires Continued Accent On Efficiency, Productivity, Profitability And Technological Automation. The Major Challenge For Public Sector Banks (Psbs) Relates To Networking And Providing Core-Banking Solutions. Restructuring Branches, Downsizing Manpower, Reducing Operational Risk And Transactions Cost By Progressively Greater Use Of The Convergence Of Information And Communication Technology (Ict), Containing Accretions To Npas And Optimising Efficiency Have Also Emerged As Key Policy Variables Impacting The Working Of The Winning Formula. The New Capital Accord, Which Is Based On A Three Pillars Approach Of Minimum Capital Requirements, Supervisory Review Process And Market Discipline, Requires Tectonic Changes. Some Of The Key Drivers Of Basel Ii Relate To Technological Advances Leading To Emergence Of New Financial Products And New Ways Of Delivering Them, Progressively Larger Deregulation, Demographic Changes And The Nexus Of Increased Competition, Enhanced Search For Shareholder Value And Spread Of Financial Safety Nets. These Forces And Their Interactions Have Been Reflected In Securitisation, Globalisation And Consolidation In The Financial Services Industry. But Basel Ii Accord Is An Evolving Process To Handle Financial Innovation And Increasing Cross-Border Flows Triggered By Rapid Technological Advancements. Systemic Reform Of The Banking System Necessitates Streamlined Risk Management, Adequate Capital Provision, Sound Supervisory And Regulatory Practices, Transparency And Macroeconomic Stability.The Book Would Be Useful To A Wide Crosssection Of The Reading Public, Including Scholars And Academics, Government Executives, International Institutions, Business Communities And Planners, Bankers And Policymakers.