The Saga of Leadership and the Banking Sector


Since 1994, there hasn't been such magnitude of change in the Indian banking sector, such as the one that it is about to undergo in the next couple of years. With 6 major banks looking at changes in the top leadership, the sector is facing an upheaval, while handling the spiral of bad loans and the crackdown on corruption.

Axis Bank has brought in AmitabhChaudhry to replace ShikhaSharma, whereas HDFC Bank and IndusInd Bank are looking to move forward from the successful stints of AdityaPuri and RomeshSobti respectively. ICICI Bank's corporate governance incident has paved way for SandeepBakshi. Last is an unexpected change in YES BANK, as RanaKapoor's term extension has been drastically shortened by the ReserveBankOfIndia.

The importance of good leadership, and the public’s faith in the same is displayed by the fact that investors pay a premium multiple due to the management of these private banks. Second tier private banks such as RBL Bank and AU SMALL FINANCE BANK are looking set to increase their share in the high growth pie that is the private banking sector. This is just the beginning of what promises to be a very interesting phase for the IndianBanking sector