Changing ideology of the bankers might have a positive impact on the economy. New dynamics like retail lending, innovative technology etc., are forcing the banks to consolidate and become universal. The gargantuan size will benefit only if it brings various synergies. There is also need for good skill to handle the complexities and the conducive environment in the market.

The overall growth prospects of the Indian economy have been strengthened by the resilience shown by the industry and services sectors. The astounding success achieved in the telecom sector has raised the eyebrows and the next in priority is the financial services sector.

In recent times there has been an upsurge in activities in the banking sector around the world. HSBC has made a strategic move to open more branches in China. American Express Co., and China's largest state-run bank, Industrial and Commercial Bank of China, launched standard and gold versions of the American Express card aimed at a burgeoning market of affluent Chinese consumers. In the Indian turf, IOB, BOB, PNB, Dena, Syndicate Banks etc. are on the move to raise Tier-1 and 2 capital. While the BOB and Canara Bank are on the global expansion drive, Hyderabad based Andhra Bank is keen to have product alliance with UTIMF to vend latter's products, whereas HDFC Bank and ICICI Bank take the ADR route. Union Bank is launching share transactions in all CBS branches, last but not the least the SBI is venturing into general insurance so as to provide complete suite of financial products. All these and many more steps of this sort are converging towards new dynamics _ Consolidation.

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