Taking into account the exponential growth of banking sector in the country, India needs 3-4 large banks, a top official of Catholic Syrian Bank (CSB) said today.
Speaking on 'Banking scenario' at the Bankers' Club here, Rakesh Bhatiya, Managing Director and Chief Executive Officer of CSB, said that India's largest bank SBI had no place among the 50 largest banks in the world. At the same time three Chinese banks find place among the 10 most valuable banks, globally, he said.
Small banks, focusing on the local community also have a space. Even in the US small banks are running successfully on the plank of Community Banking and Loyalty Banking.
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"RBI move to provide licences to new banks cannot be interpreted as contradictory to the consolidation of the banks," he said.
New blood may bring new ideas and better technology. Large organisations with long experience in the financial sector can add value to the sector, he said.
"Strict regulations adopted by the US regulators after the banking sector collapse there in 2008 had proved harmful to the banks world over. All the banks are following US standards. These regulations are difficult and costly," he pointed out.
"It is very challenging situation for all of us. Economic scenario may improve post coming general election. Up and down in the banking sector is not new. Increasing NPA level has been a problem. But NPA-centered credit policy may be proved harmful to the economic development", Bhatiya added.
