BS Banking Annual 2016: Challenges abound

Banks will need to address issues such as stressed assets, capital adequacy, competition from digital and new players. Time is running out

The repercussions of the shock effects and the surge in liquidity owing to demonetisation are the most important problems in the minds of bankers. While it is natural for the shock to remain centre-stage for some time to come, several other issues beg attention. 

Banks, especially from the public sector, face the monumental task of managing bad loans and getting adequate capital to meet regulatory norms and support growth. Competition from the new kids on the block — be it new banks, small finance banks or payments banks — are challenges. Plus, a strong digital presence is no longer something that