and some imminent steps such as licensing of new banks and subsidiarisation of the foreign bank branches, on the one hand, and the changing profile and simultaneously rising aspirations and expectations of the customers on the other, should make the turf more competitive and increasingly, a buyers’ market.
In view of the impending competition, banks would be forced to take a hard look at their existing bouquet of product and service offerings and customer base so that they may reposition themselves as “differentiated and niche” players. The increased competition could also drive a spate of mergers among existing players and lead to consequent consolidation within the sector.