Private sector banks’ market share will go up significantly and be on a par with that of public sector banks in the next five years.

In the next five years, the 70:30 ratio between Public and Private banking will move towards 50:50.

In the banking business, you must have a focused approach to ensure that the money you give out comes back.

Banking is fundamentally a high-risk business. For example, out of an Rs100 loan given, a bank’s equity is only Rs10; the balance is depositors’ money.

In this kind of a business, you have to have fundamental quality of prudence, simplicity, etc., or else this is one of the most difficult businesses in the world.

Between the period 2010-11 till 2018, the game of basically postponing without recognising bad loans effectively bloated the loans to disproportionately high levels leading to ever greening of loans.

We are amongst the top three countries in the world when it comes to levels of stress; and who are our companions — Greece and Italy.

The belief is that a lot of the challenges in the banking system are essentially on the large businesses.

We have also a pretty sensitive underbelly of the SMEs business, which has not fully revealed its hand yet.

The revised framework for resolution of stressed assets will have its implications not only for the big guys but also for the SME sector.