Over the last three decades, there has been a remarkable increase in the size, spread and activities of banks in India. The number of bank branches rose considerably during this period. The business profile of banks has transformed dramatically to include non-traditional activities like merchant banking, mutual funds, new financial services and products and the human resource development. Interest rates have declined considerably but there is evidence of under-lending by the banks. Change is the only constant factor in this dynamic world and banking is not an exception. The major challenge faced by banks today is to protect the falling margins due to the impact of competition. Another significant impact of banks today is the use of technology. There is an imperative need for not mere technology up gradation but also its integration with the general way of functioning of banks. All this is possible with the help of efficient human resource management. The banking sector as a whole and particularly the public sector banks still suffer from considerable NPAs, but the situation has improved over time. New legal developments like the SARFAESI Act provide new options to banks in their struggle against NPAs. The adoption of Basel-II norms however implies new challenges for Indian banks as well as regulators. Over time, the Indian banking industry has become more competitive and less concentrated.