On our part, we have been sensitizing the bank managements to address the likely talent deficit that they would have to encounter more so on account of entry of new banks in the private sector space in the near term. B.  Positives for the banking sector  22. Let me now dwell upon several positives that hold out for the Indian banking sector.
As I mentioned earlier, the performance of the Indian banks pretty much mirrors the performance of the Indian economy. The piling up of distressed assets and consequent drop in profitability is, thus, largely a fallout of poor macroeconomic environment- both domestic and global. Going forward, a sharp uptick in “investment” led as also “consumption” led demand is expected in the economy.