He said there would be tough competition in the banking sector in the future. Size of a bank would matter a lot. It would determine the strength of the bank. So consolidation is a must. Customers would want all the banking services under one roof which means convergence of services.
Therefore, it is the responsibility of the top management and other employees to prepare themselves for the future scenario. Mr Chidambaram was here to inaugurate the 100th branch of Bharat Overseas Bank Ltd (BOBL).
In a monopoly situation it is very easy for banks to show profitability, but factors like quality of organisation, corporate governance, quality of audit and accountability and market discipline are very important and have to be improved, he added.
| CompetitionFuture promises enough competition in the banking sector |
ConsolidationSince size of a bank determines its strength, consolidation is a must
ConvergenceCustomers want all banking services under one roof, which highlights the importance of convergence of services