The Hindu Business Line : Indian banking system

This refers to the editorial "Banks on a roll" (Business Line, November 29). Comparison between domestic banks and foreign banks operating in India should not in any way underestimate the performance of the domestic banks because the clients are entirely different.

Domestic banks service the needs of the poorer sections of society also. Indian banks are spreading their operation to foreign countries.

While technology has revolutionised the country's banking system, the services still need to be expanded.

It is said that 20 cities account for 80 per cent of new assets created in the banking industry.

So banks must utilise the enormous growth potential in the country. And against the enormous size of foreign banks, even larger banks such as SBI look small.

So through mergers and acquisitions our banks should rise to global status. Setting definite goals may help.

A. Jacob Sahayam

Thiruvanantahpuram

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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