(5 April 2005 – India) The Indian banking sector is set for consolidation, the Reserve Bank of India has predicted.RBI deputy governor V Leeladhar said the Indian banking landscape would change from one where there were a large number of small banks to one where there will be a small number of large banks.
He said banks would have to carefully choose the most effective strategy for them to find their place in the new order.
Leeladhar said information technology and the application of technology were the most discussed yet least understood aspects of improving the banking sector.
He said getting these issues right was essential for cutting distribution costs.