In an uncertain environment, banks are extremely concerned with liquidity risk and concentration & correlation risks and have to develop tools to calculate economic capital that will integrate credit and market risks. Another challenge facing the banking sector is that of compliance and governance. To reduce systemic risk, regulators have placed lot of checks and balances in the sector. From tapping new segments in the SME sector to funding cross-country aspirations as Indian corporates go global, Indian banks are pursuing multiple strategies for growth in an uncertain environment. Banks are also deliberating on social media initiatives to reach out to urban and emerging class and SMAC (social, mobile, analytics and cloud) on a whole could bring a new perspective on customer experience and on creating a sustainable business. This thought-leadership is an attempt to discuss the opportunities and challenges that lie ahead of the Indian banking industry.