With stiff competition within the Indian banking sector, more and more banks are now introducing new and innovative products and services to distinguish themselves from the rest.

There is no denying the fact that private and foreign banks are penetrating into the Indian market with great force, as they have a better focus on the implementation of modern technologies and providing convenient banking services to their customers. However, the Public Sector Banks (PSBs) still control almost 80 per cent of the business in the country due to their wide network of branches and thus, a better reach to more and more people. Though RBI encourages entry of new private banks and grants licenses to industrial houses, the Public Sector Banks are way ahead of their private counterparts. The RBI is now even permitting mutual funds, non-banking financial companies, bond houses and insurance companies to borrow funds against corporate funds by allowing the sale and repurchase agreements in corporate debt.

State Bank of India (SBI), Bank of India (BoI), Punjab National Bank (PNB), Allahabad Bank and Central Bank of India are among the leading public sector lenders, while Axis Bank, ICICI Bank and HDFC Bank come in the list of leading private banks in India. The stiff competition within the banks has come out as a boon for the customers who are now witnessing a wide range of options to choose from, right from banks to banking services. Banks in India are now passing through a phase of customers' market. Gone are the days, when one used to wait for hours before withdrawing cash from his/her bank account. With the rapid advancement of technologies in the sector, one can execute most of his/her account transactions without visiting the branch. Thanks to Internet banking that has made it all possible.

Within a short span of time, there has been an unprecedented rise in the number of individuals using this facility to check their account balances and statements. What more, the user can also make online payment for his/her bills. That means, a complete peace of mind for the customers. No need to say that Internet banking feature saves the customers from unnecessary time-wastage and is nothing short of a big relief for the banks' customers. Phone banking is another feature that has gained popularity among the Indian masses, which they use to esquire about their accounts. Loans, debit cards, credit cards, insurance and investment plans are among the other services that the banks are providing to their customers and also to lure the new ones.

The Indian banking sector is still in its infancy and has still a long way to go, before it could compete with its Western and European counterparts. Banks in India also managed to tide over the impact of global slowdown and then came out successfully from the Dubai Crisis. In-fact, it won't be an exaggeration to say that banks in India are going great guns and with the entry of private and foreign banks in the sector, the whole scenario is set to change very soon.