Indian Banking – The engine for sustaining India’s growth agenda
5th ICC Banking Summit Kolkata
18 May 2013
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
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To meet these requirements and challenges, industry players are gradually harnessing technology with cloud computing and analytics based on big data becoming a key differentiator. The budget referendum of allowing banks as insurance brokers is also a welcome move for the industry, which will gradually forge out a financial supermarket for the customers. With tele-density (based on total number of mobile connections) standing at 74.21, in 2012, according to Telecom Regulatory Authority of India (TRAI), India can consider the Kenyan model of ushering in financial inclusion through mobile banking services, including money-transfer systems and savingsand-loans services, through a simple SMS network. Leadership and the ‘right’ talent would be very critical for banks over the next 4-5 years as they work towards achieving their growth agenda and ward off competition for talent from the new local and foreign banks. The future operating model for banks would force banks to choose their areas of differentiation and expertise rather than aspiring to be a single service provider. This paper discusses the opportunities and challenges that lie ahead of the Indian banking industry. It also touches on some possible avenues for augmenting banking penetration in the strategically placed Eastern and Northeastern states of India.
Head - Management