THE BANKING SECTOR hasn't looked this strong in years. With assets worth ₹243 lakh crore, backed by strong asset quality, robust capital buffers, soaring profitability, and the Reserve Bank of India's (RBI) proactive measures towards improving banks' governance frameworks, one would expect smooth sailing ahead. But why are bankers fidgety?
That's because they must contend with headwinds in the retail banking space, subdued private capex, falling low-cost deposit growth, competition from major corporates in the NBFC space, and must comply with the evolving regulations of a vigilant regulator.
That said, the best in the space will thrive. And the 28th edition of the BT-KPMG Best Banks and NBFCs Survey 2022-23 is proof of that. The study celebrates those that have weathered the storms in FY23, innovated in products and services, nurtured talent, and leveraged the strengths of fintech or technology partners to prepare for the future. (See box 'Meet the Brightest Stars').
But pain points persist. Here are the significant ones.
RETAIL BANKING PANGS
In recent years, the banking industry has seen a significant increase in retail assets, driven primarily by the rapid growth of the unsecured loan book - think personal loans, credit cards, and microloans. Sensing the possibility of overheating, the RBI has increased the risk weights for unsecured loans, requiring higher capital allocation for both banks and NBFCs. This is expected to slow consumer lending and reduce yields, as unsecured loans typically offer higher returns than mortgages.
Bu hikaye Business Today India dergisinin March 31, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today India dergisinin March 31, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
Haute Couture in the Kitchen
FASHION BRANDS ARE ENTERING THE RESTAURANT SPACE, AS FOOD SEEMS TO HAVE BECOME THE ULTIMATE FASHION STATEMENT
It's Personal
Mixing work and personal tasks on work machines may be a done thing for many, but it makes sense to have a dedicated device for your personal needs. Here are two such devices
INTO THE BLUE
For WTiCabs Founder and CEO Ashok Vashist, scuba diving is not just an adventure sport. It is a pathway to connect with the ocean
"Challenges are opportunities"
AMIT JAIN CO-FOUNDER & CEO CARDEKHO GROUP CarDekho Group is a digital automotive solutions provider
THE WAIT FOR HIGHER PENSION
ALMOST 18 MONTHS AFTER THE SUPREME COURT RULING, SUBSCRIBERS WHO OPTED FOR A HIGHER PENSION UNDER THE EMPLOYEES' PENSION SCHEME CONTINUE TO WAIT AS THE EPFO, FACING A STAFF CRUNCH, TRIES TO FIGURE OUT THE MATH
"It's possible to have a 25% growth out of India from now on"
Rail Europe Executive Chairman & CEO Björn Bender talks about the India market, the shift to digital, and the way ahead
Evolving Strategies
Companies need to adapt to changing times for a strong workforce
PERKS PRESSURE
IT'S NOT JUST ABOUT THE MONEY ANYMORE FOR EMPLOYEES. FROM FOUR-DAY WORK WEEKS, TO SKILLING ON THE JOB AND MENTAL WELL-BEING EXERCISES, COMPANIES ARE OFFERING A HOST OF BENEFITS TO RETAIN TOP TALENT. IS THIS ENOUGH?
FOSTERING PLURALISM
Axis Bank, with its initiatives and policies, is striving to make a holistic difference to people's careers and hone their skills too
In Keeping With The Times
With a slew of initiatives for its employees, Abbott India is working hard to build a diverse and inclusive workforce