These are exciting times for the Indian banking sector. It is growing rapidly, with even better future prospects. Some of these opportunities are likely to be global in scope. Several Indian banks are developing global strategies and, at the same time, many global banks are paying ever more attention to India. In about a year, foreign banks are expected to be able to acquire greater stake in private sector banks.

Are the Indian banks equipped to exploit the new opportunities and deal with the new challenges optimally? Have they developed and adopted the best competitive practices and standards in key areas: retail banking, corporate banking, personal financial services, treasury management, and customer satisfaction? How do their practices and performance compare with the best global banks? On the other side of the coin, banks have a key role to play in the socio-economic development of the country. Today, a significant fraction of the Indian population remains excluded from basic banking services. SMEs complain of credit shortfall. The rural credit situation needs improvement. Clearly, the unprecedented opportunities for the banking sector with the attendant domestic and global competitive pressures on the one hand, and unfulfilled national priorities on the other, make for a complex scenario.

Are there ways for the Indian commercial banks to achieve both objectives: performance and social responsibility? This is a question of far-reaching consequence for all concerned constituencies: academic researchers who research the banking industry, the bankers who manage and run the different segments of the industry, including private, public sector and foreign banks, and the regulators and policy-makers who set the rules and boundaries of the industry.

This Conference offered a public platform for the leaders in each of the three constituencies to examine this question. It consisted of two panel discussions and a special address.