Banking

There is an overall improvement in the profitability situation in the recent years and also broad convergence of profitability across various bank groups. Since the mid-1990s, profitability levels of commercial banks has hovered in the range of 0.7-0.8 per cent, except during certain exceptional years. With the retail-banking sector expected to grow at a rate of 30%, players are focusing more and more on the Retail and are waking up to the potential of this sector of banking.

At the same time, the sector is witnessing structural changes in regulatory frameworks and securitization and stringent NPA norms means, the faster one adapts to these changing dynamics, the faster is one expected to gain the advantage.