The liberalizations in financial sector led to heavy hammering on the interest rates, which ultimately, reduced the spread available. This state of affairs resulted in multifarious churning up of thoughts and led to new horizons of hope. Indian banking, in the recent years, with high hopes of becoming the Financial Super Markets and with the sole aim of increasing income and profit has started designing innovative ideas.

The journey of Indian banking industry has been exciting in the last one and a half decades and has witnessed many dramatic events. The roadmap of future banking is engulfed by transition and in spite of all that has been said, very little is done in recent times. The most important dimensions that attract the mindset of top brass relate to consolidation, Basel II, technology, competition, marketing and the like. Though the theme is different for banks, there has been concentration to enlarge internal accruals in the era of squeezing spread. The liberalizations in financial sector led to heavy hammering on the interest rates, which ultimately, reduced the spread available. This state of affairs resulted in multifarious churning up of thoughts and led to new horizons of hope. Indian banking, in the recent years, with high hopes of becoming the Financial Super Markets and with the sole aim of increasing income and profit which are the internal accruals for organic growth, has started designing innovative ideas.

The Banks, in general, are busy with finding a solution for inorganic growth approach. The inorganic route to growth is not an end in itself. It is a means to an ultimate end. The ultimate end is the positive growth in internal accrual front, which is the propelling force for the existence or otherwise of the organization. For this, they are simultaneously following the organic approach also to build a robust organization and counter the international peers entering the Indian plane or to face challenges beyond the border. The interest spread with its southward sojourn, compelled banks to open up new vistas in the sphere of non-interest income. The banks have been instrumental in various strategic alliances, in competitive spirit and in various non-traditional fields with the idea to add income in the sphere of non-funded income areas. The magnets of product alliances have been forceful to pervade the banking sector and attract the mindsets of top brass and encourage them to involve more in such activities which can only be a savior in the emerging situations.

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