India’s economic growth that sunk to a decade low of 5 percent last year continues to plague the economy. The twin tasks of reinvigorating economic growth and reining in inflation during the times of dwindling rupee value, weak global demand and persistent current account deficit present a mesh of problems that need immediate and coordinated actions on the fiscal and monetary front.
Against this backdrop, the banking sector has an important role to play in stimulating economic growth. It channelizes national savings into investments and provides credit to the productive sectors and finances the needs of the real economy. Further, for emerging economies, banks are important drivers of financial inclusion and economic growth.
The volatile economic scenario has forced banks to try various business models either to increase their bottom line or manage risks better. Adoption of new technologies and a constant pursuit of innovation to improve products and services will be crucial.
The CII-KPMG report on ‘Indian Banking - Maneuvering through Turbulence: Emerging Strategies’ prepared under the aegis of the ‘Banking Colloquium 2013’ attempts to capture the current scenario and details of the strategies being adopted by Indian banks, way forward to compliance and governance, financial inclusion, technology in banking, market risk hedging and proposed new banks. The study was released at the Sixth Banking Colloquium 2013 organized by CII on 13 September, 2013 at Kolkata.