Statsguru: Future of banking in India

Banks need to fundamentally reorient their business and adopt new strategies: Report

A new report by the Boston Consultancy Group, Hidden Treasure, claims that while major capital infusion by the government of India is likely to provide the public sector banks with the necessary “breathing space” that they so critically need, it may still not be enough to restore banks to proper health; instead, banks need to fundamentally reorient their business and adopt new strategies.

It is true that, as Chart 1 shows, banks dominate the revenue pool. This dominance is more pronounced in the traditional segments and reduces as one looks at the non-conventional segments such as the distribution of insurance