Consolidation in banking

Updated: Dec 31 2006, 07:24am hrs
We expect the banking sector to go through exciting times in the year 2007, which will be backed by the consolidation process in the industry. Many weaker banks in the country would be taken over by the stronger banks. Talks have been initiated for consolidation among the public sector banks and we may see some action in that space too. We would like the government to extend certain concessions to the bank deposits, in line with the concessions available to the other investible instruments. This would make bank deposits more competitive in the market.

The author is chairman, IDBI