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Indian Banking

In: Business and Management

Submitted By g13089
Words 7327
Pages 30
Indian Banking – The engine for sustaining India’s growth agenda
5th ICC Banking Summit Kolkata
18 May 2013

Foreword

Over the past couple of years, the Indian banking sector has displayed a high level of resilience in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and Europe. In order to stimulate the economy and support growth of the banking sector, the Reserve Bank of India (RBI) adopted several policy measures.

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Asset quality, capital adequacy, financial inclusion and talent management are some of the key issues facing the Indian banking industry, which despite serving the second largest populated country in the world with a total of 87 banks (including 26 public sector banks, 20 private banks and 41 foreign banks), as per the RBI, reaches out to only about half of the country’s households, scripting a nominal global footprint. The rising consumerism from the emerging ‘middle’ India and the higher purchasing power in rural India on account of rising employment provides opportunities for banks to look beyond the traditional customer segments. However, these segments would require flexible operating models which would ensure responsiveness at the last mile and at the same time be viable for the banks. On the other hand, global aspirations of Indian corporates calls for funding of cross-country acquisitions, greater sophistication in services and scaling up of resources from the Indian banks. RBI’s final guidelines for licensing of new private sector banks towards beefing up competition and garnering fresh capital for financial inclusion would roll in a timely debate on the need for...

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