Cover
Story
Performance
Snapshot 2003-04
-- D
G Prasuna
Indian
banking has come a long way since its liberalization. New
private sector banks brought the necessary competition into
the industry and spearheaded the changes towards higher utilization
of technology, improved customer service and innovative products.
In spite of their sheer size, public sector banks proved to
be surprisingly nimble and flexible to meet the emerging needs
of customers. As the body responsible for bank supervision,
RBI has played its part in ensuring that banks are in tune
with the international standards and norms. Today, the Indian
banking sector is as competitive and healthy as any in the
world.
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Expert
Views
Innovative
Banking
-- T
B Kapali
"A
beginning has been made in innovating on deposit side. We
have seen some deposit products linked to insurance being
introduced. However more needs to be done."
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Performance
of the Indian Banks
-- N Nagarajan
"Given
the confidence and competency, and the willingness to innovate,
the Indian banking system is poised to scale new heights in
the years to come."
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Indian
Banking at the Crossroads
-- Dharmalingam
Venugopal
"Banks'
profitability is likely to come under pressure in the coming
year in the light of the uncertainty in the interest rate
movement."
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Issues
in Implementing Basel II by the Indian Banking Industry
-- Sankarshan Basu
"Implementation
of Basel II is no longer a possibility, it is a certainty.
Thus, the Indian banking industry has to gear up towards it
and ensure that it is implemented well in timeor else the
cost of being left behind will be too large to bear."
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Technology
in Banking
-- K N C Nair
"Banks
have to take care that while embracing technology and transforming
traditional touch-points to electronic ones, they shall not
lose the human touch with their customers."
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Role
of Cooperative Banks
-- S R Utekar
"In
the emerging competitive business environment, cooperative
banks who adhere to strict financial discipline, only will
survive."
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Interviews
"Earlier,
we used to talk about foreign banks, nationalized banks and
private banks. Now, we talk about bad banks, good banks and
better banks."
-- Aditya
Puri
"Banks
are competing in the retail banking arena on the basis of
product innovations, rationalization of service charges, competitive
pricing, and simplified procedures for documentation."
-- P S Shenoy
"Banks
are looking at mergers and acquisitions as a way to survive
in the competitive environments."
-- M
Y Khan
"Banks
no longer offer plain vanilla products. It has become imperative
for them to introduce new innovative products to retain, if
not increase, their market share."
-- Mannil
Venugopalan
"In
the coming years, banks will become technology-savvy, with
fewer players in the market due to mergers and acquisitions."
-- Y Vijayanand
"Most
banks have placed a lot of emphasis on building up their Risk
Management practices."
-- Ratnakar
Hegde
"PSBs
have indeed risen to the demands of the market and stepped
up their profitability and efficiency levels considerably."
-- R V Shastri
"Though
banks have issued notices under the Securitization Act, procedures
in enforcing the Act still remain a hurdle in effectively
dealing with NPAs."
-- M B N
Rao
"The
credit portfolio of banks is expected to increase substantially
due to aggressive marketing of Retail Loans, Consumer Loans
and Agricultural Lending."
-- V
N Saxena
"There
are indications of merger of even fairly large-sized and profitable
banks."
-- G Krishnamurthy
"The
foremost thing is the management, which an investor should
look at in a cooperative bank. The people running the show
and the commitment they exhibit should be the sole determinants."
-- Narendra Kumar Baldota
Industry
Indian
Banking Sector: The
Changing Landscape
The
ongoing reforms process, growing use of technology, increased
competition and product innovation have all put the banking
sector on a high growth trajectory. However, significant challenges
lie ahead for the banks in the country as they gear up to
embrace international standards and best practices, particularly
Basel II norms.
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Retail
Banking: The New Growth Driver
To
remain in the competition in retail banking, banks will need
to operate efficiently, and package and deliver products on
time, leveraging the multiple channels of delivery.
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Technology
in Banking: Towards Convenience
Banks
are using technology to offer low-cost and convenient banking
services using multi-service platforms.
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Internet
Banking: A paradigm shift
It
is not the cost factor that is driving Internet banking usage;
it is convenience that is leading the online banking revolution.
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Securitization
Act: Plugging the Gaps
In
the backdrop of the rising cases of defaults and growing disenchantment
of banks with the Securitization Act, it is imperative that
necessary amendments are made in the existing Act.
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