| The Indian banking industry, an important tool in facilitating the development of the economy is now addressing the relevant issues to take on the multifarious challenges of globalisation. Liberalisation and deregulation of the financial sector, the greater use of financial engineering techniques and models, significant advances in information technology and most importantly the demands of customers have all resulted in greater competition in the banking industry. This increased competition makes it difficult for banks to sustain, succeed and to retain their customers. Banks have to respond to new avenues like mutual funds, foreign exchange, and security broking facilities including the sale of insurance products which could generate substantial fee income and enhance the level of customer service. |