India's Banks Gear Up for the Global Market

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India's banking industry these days finds itself on a treadmill where it has to keep pace with the country's rapid growth by servicing a customer base with global options.

A report by the consulting firm McKinsey & Co. finds that while Indian banks fare well by global standards on a few counts, including increasing shareholder value, they will have to do much more to stay competitive. India Knowledge@Wharton spoke with experts at Wharton, McKinsey and the Indian School of Business about how India's banks can deal with the challenges they face.

McKinsey, with support from the Indian Banks Association, tracked 14 leading Indian banks and their customers in five surveys. These covered their performance in personal financial services, retail banking, IT benchmarks, organizational performance and asset liability management. The institutions included seven public sector banks, four from the private sector and three foreign organizations. ...