• PAGE ONE
• INDEX
• HOME

`Banking sector shakeout imminent'

Our Bureau

MANGALORE, Dec. 24

THE banking industry in the new scenario will `ultimately' consolidate itself around a limited number of `big players', according to the General Manager of Corporation Bank, Mr P.K. Alva.

Delivering the inaugural address at a group discussion on `The problems of Indian banking' organised under the auspices of the Corporation Bank Chair in Bank Management at the Mangalore University here, Mr Alva, going over the `reform process' in the ban king sector, also said the fact that foreign banks and `new generation' private sector banks have started their operations with a `clean slate' has increased the `operational costs' of public sector banks which have problems such as ``a number of small l oans spread over a vast geographical area, deposits of very small amounts, loss-making branches and excess manpower.''

In order to evolve a `level playing field', according to Mr Alva, public sector banks had `no option' but to ``aggressively switch over to the information technology front to keep them in a comfortable position in the race.''