M&A activity may pick up with easing of entry of new private sector banks. Increased openness of the economy means demand for overseas business could expand. As such, wholesale banking would need to gear up to provide globalized services. These services would need to cover trade finance as well as treasury operations. The cash management could get more complex.
Indian banks have hitherto devoted disproportionate attention to serving large corporate clients. They need to retrain attention to mid-corporates and SMEs by planning for a new level of relationship management, offer more structured credit products and niche investment banking services.