As margins shrink, corporate banking will also need to change and bankers will have to look at increasing their revenue flow from more off balance sheet activities and raising the ratio of their fee and commission incomes from what it is today.
Banks will also need to align with the vision of the government and look increasingly at project finance and structuring deals that are the result of new policy initiatives, according to Rajan Khetarpal, head of Corporate Banking at the Emirates Bank.
He said that, with the thinning margins, banks in the country today are increasingly looking at more efficient ways of deploying their capital. He also attributed this to be one of the reasons for the growing retail assets of the banks.
