BANKS NEED TO REVAMP BUSINESS AND MARKETING STRATEGY TO OUTREACH POOR

Indian banks apparently doing good but with the growing decadence of Indian economy it would not be possible to maintain the present rate of profitability and growth unless some strategic change is not immediately initiated and necessary technical and expertise is developed to successfully persue business model to outreach the poor, it would be difficult to pursue sustainable business. An attempt has been made in this paper to comprehend the problem and to develop sustainable business strategy to steer Indian banks from the looming depressed market. It is true today Indian banks are roaring as is evident from recent reports on financial results of these banks but it cannot be denied that not only in India but also globally banks are noticing that their net interest income which traditionally has been their mainstay is gradually dwindling and their operating expenditure is fast increasing despite upgradation of technology and sophisticated marketing efforts recently undertaken by them. To obviate the situation some experts think banks should explore the possibilities of increasing non-interest income by developing advisory functions and providing services of various types to different types of customers. However a recent research study has revealed that hardly 24% of banks globally feel confident of their ability to develop non-interest income though 87% of them feel that this strategy is very much needed to sustain them.