Financial sector plays an indispensable role in the overall development of a country. The most important constituent of this sector is the financial institutions, which act as an intermediary for the transfer of resources from net savers to net borrowers. The financial institutions have traditionally been the major source of long term funds for the economy. These institutions provide a variety of financial products and services fulfill the varied needs of the commercial sectors. They play a vital role in reducing regional disparities by inducing in providing assistance to new enterprises, micro,small and medium enterprises as well as to the industries established in newly and backward areas. These financial institutions can be broadly categorized into All India institutions and State level institutions, depending upon the geographical coverage of their operations. At the national level, they provide long and medium term loans at reasonable rate of interest.