India needs larger banks, consolidation greater need: Deepak Parekh
"The new RBI Guidelines on the banking licenses have opened the doors to next-generation banks. The move not to bar any sector and tough Group exposure norms are steps in the right direction," said S Ravi, an eminent chartered accountant and independent director on various public companies.
"This will envisage the existing banks towards better performance which augurs well for the customers. RBI's emphasis on the track record of the promoters will go a long
way in establishing a stable and safe banking companies," he said.
At the end of last fiscal, India had a total of 173 commercial banks, which included 169 scheduled commercial banks and four non-scheduled commercial banks. Excluding the regional rural banks, there were 87 scheduled commercial banks in the country as on March 31, 2012. This included including about 27 from the public sector and 20 the domestic private sector banks.
As on March 31, 2012, a total of 41 foreign banks operating in India, while another 46 overseas banks had their respective representative offices in the country. In comparison, on lay 23 Indian banks had any overseas presence at the end of last fiscal.
Also, none of the Indian banks figure among even the top-50 banks globally in terms of either valuation or size, measured by equity and reserves.
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