The global financial crisis erupted in the USA in mid-2007 spread immediately to the developed economies. Slowly this has creeped into the Emerging Markets Economics in Asia and elsewhere in the world. India could not escape the contagion effect due to its increased pace of globalization for the last two decades. In view of the sound fundamentals of the economy, well regulated financial sector, traditional and well effectively managed banking sector, it was expected initially that there would be ripple effects on the economy.