The environment in which the banking industry is operating now has become very complex compared to the past. For the banks to perform well, all portions of the economy should work well.
The numbers of international banks have increased and this has caused in a surge in competition. These international banks target a niche segment in the market and SBI has a big challenge to overcome the niche market, targeted by the foreign players, said S Vishwanathan, MD & Group Executive, SBI Associates & Subsidiaries while addressing the students of XlRI through the
XlRI leadership Series (XlS), a series of talks organised by the one year MBA – PGDM (GM) at the B School on Saturday, March 15.
Sharing his views
on “Changing landscape of Indian Banking”, S Vishwanathan said that risk profiles in every geography has changed and this has resulted in having differential pricing for the various
bank products.
In addition to this, he also mentioned about the numerous regulatory challenges faced by banks.
Moreover, banks also have internal challenges such as attracting and retaining
good people.
Further, talking about the RISKS, S Vishwanathan said there are a whole lot of
risks such as credit risk, foreign exchange risk, market risk, interest rate risk and liquidity risk etc., which a bank
face today.
He mentioned that banks need to develop risk management measures to overcome this and should have dedicated risk management teams to handle the risks.
Referring to Demat Accounts as the next big thing in the banking industry, S Vishwanathan said this would provide the banks with a lot of data bases and this would provide a huge opportunity to develop and sell new products.