India's public sector banks used to be slow-moving bureaucratic behemoths, ripe for attack by up-and-coming private sector players. But now the sector has been shaken up by the competition and is producing its own examples of efficiency and progress.
Bank of Baroda, which is eighth in The Banker's ranking of Indian banks by Tier 1 capital, is one institution which responded positively to the new banking environment in India. It introduced a factory-type system of processing loans that pools expertise and cuts down decision-making times. Strong risk management has enabled it to navigate tricky areas such as real estate and consumer finance, while also keeping non-performing loans (NPLs) below the industry average. A branding initiative introduced a bright new logo and employed Indian cricket star Rahul Dravid as brand ambassador, helping to rid the bank of the stuffy image left from the old days of Indian public sector banking.
