The banking sector is set to foresee both evolution and revolution in the coming future. Only those banks which move with the rapid pace 
of technological development will survive. There is need for the banks to have a low-growth environment across much of thedeveloped world and slowing growth in the developing world. Innovation in technology has already created a revolution across various parts of the banking industry. As per statistics, banks will deliver higher revenues in areas like creating new consumer base, aiding infrastructural venture and developing new range of products. There will be emerging need for the International Banks to choose the appropriate market where they want to expand. As local banks have limited balance so there will be increasingneed for the government to support these local players.
Indian Banking sector
During 2006–2016, time deposits with banks recorded the highest average growth of 12.9 per cent, total money supply rose at a CAGR of 11.14 per cent, narrow money supply (M1) rose at a CAGR of 7.69 per cent to US$ 392.8 billion and broad money supply (M2) increased at a CAGR of 6.49 per cent to US$ 395.3 billion. As per RBI, India’s banking sector is adequately financed and well-regulated. Even the financial and economic conditions are far superior to any other country in the world. According to credit, market and liquidity risk studies, it revealed that Indian banks are generally resilient and can withstand any turmoil.There is commencement of innovative banking models like payments and small finance banks.
Developments and Initiatives Undertaken
In 2016, the Central bank granted in-principle consent to 11 payments banks and 10 small finance banks. RBI is adopting various methodologies in order to restructure the domestic banking industry.India’s firstnovel finance bank called the Capital Small Finance Bank has initiated its operations by launching 10 branch offices in Punjab and targets to increase the number of branches to 29 by 2017 end.State Bank of India (SBI), largest public sector bank of India has opened its first branch in order to aid start-up companies in Bengaluru.Exim Bank of India and the Government of Andhra Pradesh has signed a Memorandum of Understanding (MoU) to foster exports in India.Banks are also persuading their customers to manage their finances using mobile phones.As per data from the RBI, the value of mobile banking transactions in December 2015 increased four times as compared to previous years. The government and the regulator have undertaken several measures to strengthen the Indian banking sector.
Mergers & Acquisitions
Ministry of Finance has planned to inject Rs 5,000 Crore (USD 734 Million) in eight public sector banks in order to enhance their capital, to diminish the burden of loan repayment on farmers, a provision of Rs 15,000 Crore (USD 2.2 Billion) has been made in the Union Budget 2016-17 towards interest subvention.Total banking assets in India are projected to cross USD 28.5 Trillion by 2025. Canada Pension Plan Investment Board (CPPIB) which is an investment management company bought a huge stake in Kotak Mahindra Bank Ltd from Japan-based Sumitomo Mitsui Banking Corporation. FreeCharge, owned by online retailer Snapdeal, has teamed up with Yes Bank and MasterCard to launch FreeCharge Go, a virtual card that allows users to pay for goods and services at online shops.
