BCG matrix provides a competitive framework for businesses, based on the market share of the company and the growth rate of the industry. Indian banking, which has been swept by retail lending revolution, needs to understand the drivers of competition and leverage on its strengths to acquire higher market share. This challenge involves effective use of the customer relationship management and cross-selling opportunities.

The banking sector has seen an unprecedented growth over the last decade. Liberalization, Privatization and Globalization (LPG), have transformed the conventional market into a customer-driven one. The strategic focus has shifted from cost reduction to revenue realization by making organic growth in Customer Relationship Management (CRM). Banks are now aware of the needs of thier internal and external customers and are focusing on their satisfaction. The demand of the market is forcing the banking sector to enhance its employee skill level. The employees are expected to have a broad outlook to reach their customers and offer them customized products. For example, in streamlining this operation, banks have started doorstep banking (an initiative taken by Punjab National Bank (PNB), as reported by The Economic Times).

The prospects of the bank has a tremendous shift from savings account to premium customers by offering allied services such as translators in other language management of customer portfolio, microfinancing and including insurance as one of the services. In order to reach out a broader mass, the banks are focusing on corporate social responsibility. The developmental programs introduced by the banks in collaboration with the central and state governments have been widely appreciated.

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