India has a well developed and distributed banking system with constituents of various size, ownership patterns, geographic locations, business focuses and thrust areas. While the public sector banks account for a major part of the total business, the private sector banks, particularly the new private sector banks are also making significant in roads into the market share, driving the intensity of competition in the domestic banking sector. Some of the foreign banks that have operations in India play a prominent role in the personal and corporate banking segment, accounting for a major part of the off balance sheet business growth.
A growing need for financial services in the cities and towns of India presents the banks with a unique opportunity to develop their personal and retail banking spectrum. India is well positioned to become the fourth largest economy in the world by 2025. The shape of the banking sector in 2010 will be the result of a strong interplay between the decisions taken by policy madders and actions of bank managements.