India's fragmented state banking sector
is looking towards long-sought consolidation but the process is moving slowly, senior bankers said on Monday. Consolidation is seen as needed to improve performance, provide scale and make credit more widely available in a country where borrowing costs are high and long-term funds are needed to finance expensive infrastructure projects."I believe that if you are going to provide world-class services to world-class companies, then most Indian banks don't have the size, the scale, the products or the technology to do it," said OP Bhatt, chairman of State Bank of India
, India's largest bank.
, India's largest bank.India's fragmented state banking sector is looking towards long-sought consolidation but the process is moving slowly, senior bankers said on Monday.
Consolidation is seen as needed to improve performance, provide scale and make credit more widely available in a country where borrowing costs are high and long-term funds are needed to finance expensive infrastructure projects.
"I believe that if you are going to provide world-class services to world-class companies, then most Indian banks don't have the size, the scale, the products or the technology to do it," said OP Bhatt, chairman of State Bank of India
, India's largest bank.
, India's largest bank.Read more...