State of Banking Industry - reason to feel concern ??

So much talk about the health of the Global & Indian Banking Industry. Is it worth discussing? Is there are really some concern. I think so. Banks that are playing a critical role in the upside & down side of an Economy need to be strong, transparent and innovative. Number of Banks in USA & Europe has been closed due to the Global crisis which has been haunting the World since last 4 years. If some Banks has survived that could able to due to the life support of the Government of the respective Countries or the support of its major shareholders. Some International Banks which did not collapsed nor got any support from the Government are struggling hard and being rated down by the Rating brothers. In India also the story is not too good. Different Rating agency has different opinion about the Outlook of the Indian Banking sector. While one leading agency said it is concerning the other said it is good. I think Indian banking sector is not facing any serious stress at this point of time, but state-owned lenders need huge capital infusion very quickly to survive and to compete with other players. Capita; adequacy has been the concern of today. In India the Credit Growth is around 20%. It means Banks are lending 20% higher each year. This indicates and makes it necessary that Banks need additional Capital each year. If a Government Bank needs additional Capita; they have to ask for it to the Government as they are the major shareholder. If they issue shares to outsiders the Government % holding will fall which Government does not want? This vicious circle has put SBI in troble. A big Banks like SBI cannot do anything on its own. All decision is politically influenced. Due to this factor some time Govt Banks lend to someone which they do not want otherwise.  The NPAs % of state-owned banks has increased in India to 2.31 per cent of their assets at the end of March 2011, from 2.27 per cent in the year-ago period. As at the end of September quarter, the gross NPAs of country's largest lender SBI stood at 4.19 per cent, higher than 3.38 per cent in the year-ago period. Yes we have reason to be cautious about the Indian Banking sector at present particularly the so called secured & trusted PSU Banks