BANKS IN INDIA have taken great strides in improving their reach and performance in the past few years. As a result, not only has the sector emerged from the overhang on non-performing assets and the shadow of Covid-19, but it is also well-placed to scale at a rapid pace today.
A robust banking sector is critical for the sustained economic growth of the country. This column captures the 10 major trends that may shape the banking sector in the year/s ahead and the impact they would create.
1. Scale Matters
Scale and reach matter in banking. Consolidation of the public sector banks and the recently announced merger of HDFC Bank and HDFC Ltd has created banks with large economies of scale. This is likely to exert pressure on the other players to look for potential M&A options and shape potential strategic consolidation in the private sector in the year/s ahead.
2. Improvement in Asset Quality
The banking sector has seen
