Merging a weaker public sector bank with a stronger one may not necessarily improve the asset quality of the former.
The RBI has taken several initiatives to tackle the mounting bad loan problem of banks but their implementation remains a challenge.
Payments banks will penetrate the remotest villages - possibly with a lot of help from the mobile phone. Their success will depend on how they approach the market and their value propositions.
Long-overdue reforms could transform the banking landscape.
Indian banks stand tall in a world still recovering from a global credit crisis, but now may also be the time to push the envelope.
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