MUMBAI: CNBC-TV18 and Oracle together held a discussion on the issue of 'Managing Consolidation in the Banking Industry' in Mumbai recently.     

This first of its kind roundtable explored the challenges of consolidation in the banking industry from the business angle, the employee standpoint, the customer's point of view, the technological angle as well as the impact of Basel II on the Banking Industry.

'Managing Consolidation in the Banking Industry' proved that the business realities together with the finance ministry can make consolidation inevitable. The forum also revealed that 'Preparing for consolidation' was the need for businesses earlier but the new environment throws in fresh challenges for banks to test the veracity of the concept of consolidation.

Eminent panelists who took part in the discussion were, Union Bank of India CMD Cherian Varghese, Oriental Bank of Commerce CMD BD Narang, Dena Bank CMD Anil Khandelwal, Yes Bank MD and CEO Rana Kapoor, ICICI Bank DMD Kalpana Morparia, Deloitte Touche Tomatsu ED Ashwin Parekh, Asia Pacific Oracle Corporation vice president financial services Alan G Payne and McKinsey director Leo Puri.

Morparia said, "Today, the top five banks constitute 43 per cent of the total banking market. Mergers are inevitable because of concentration in the segments. Mergers happen because they make business sense not because they are a good thing to do."

Kapoor, on the other hand, said, "Small is beautiful. Small comes without legacy. We have the freedom to put robust systems in place. There is an opportunity now for the launch of private banks who need financial support. There is also opportunity for aggregation to take place, however, somebody needs to take the initiative. Also, catalytic forces need not necessarily be foreign. Enough potential exists within our country. New forces will eventually emerge."

Commenting at the forum CNBC-TV18 vice president sales and marketing B Sai Kumar said, "Consolidation in the banking business has finally become a reality. Until recently, it was more of 'Preparing for consolidation' but has now become quite imminent. CNBC-TV18 aims at bringing to the fore the effect of the inevitable consolidation of banks, on people from different walks of life. Through this forum, CNBC-TV18 stands by its effort at empowering Indians to make informed decisions and improving their quality of life."