Abstract: Banking is the life blood of business, commerce and industry.In modern day context, banking sector acts as the back bone of present business.The growth and development of any country mainly depends upon its banking system.A bank is a financial institution which deals with deposits and advances and other related services.It collects money from those who want to save in the form of deposits and it lends money to those who in need of it.The Banking System in India is dominated by nationalized banks.The performance of the Indian banking system is more closely linked to the economy than perhaps that of any other sector.The main objective of this study is to present the structure of Indian banking sector and to understand various reforms of it.The task of banking system is particularly vital as one of the leading and mostly essential service sector.Indian banking system continues to deal with improvement in asset quality, implementation of sensible risk management practices and capital adequacy.The paper focuses on the impact of banking sector reforms and analysis in Indian banking system.