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Seven to 10 years down the line, there could be six to seven public sector banks and a couple of private sector banks and certainly some foreign banks. In this scenario, I foresee the State Bank group continuing to have anything between 22 and 26 per cent market share. I don't foresee SBI's leadership being under threat."
"... whether there is a merger or not, 80 per cent of the assets in the system will be basically in the hands of a few banks. That is what is happening globally also and we can't duck that.
You also need a push from somewhere, a nod from somewhere, to get the big guys to move. Also, we now need to set a timeframe for consolidation so that people start working towards it. In terms of the number of players, I guess it is going to be 80:20 and within that you will have in the public sector a handful - five or six players that will be the leaders. And it is not unreasonable to assume that there will be three or four private banks and three or four foreign banks," Mr. Kamath of ICICI Bank at the same Round Table.
Broadly, there is a consensus among the Banks Chairmen that consolidation is inevitable and that the government must create an enabling situation where the leaders are encouraged to take the lead. Eight to ten big banks will dominate the industry over the next five years or so.
Concluded.
* Contributed by -
Pritesh Y. Chothani, Ritesh Sud & Rachna Srivastava,
PGDBM 2006,
IMT, Ghaziabad.
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