We see an opportunity for Indian banks from the shift towards newer and inexpensive payment platforms and better penetration of non- balance sheet products like Credit Cards. Banks that make money through ATM interchange fees are likely to see higher income through debit / credit card transactions. On the other hand, a strong retail customer base, new products and focus can provide healthy wealth-management business.
Penetration levels have improved for debit cards (~40% of savings account customers) and a proper incentive structure should enable strong growth in fee income for all banks. We notice most of the fee income generated in the cards portfolio coming