According to a recent RBI report, India’s Banking Sector is sufficiently capitalized and well-regulated, with the financial and economic conditions in India far better than most countries in the world. Further the report also cites the 2008 Global Recession and points out during those turbulent times; Indian Banks proved to be extremely resilient and withstood the global downturn very well when compared to most foreign banks. Another significant achievement of Indian Banking Sector has been according to an IBA-FICCI-BCG report which disclosed that India’s Gross Domestic Product (GDP) growth will make the Indian Banking Industry one of the largest in the world by 2025 and that the domestic banking industry is all-set for a period of sustained growth in the coming years with the assets size all-poised all-set to touch $28,500 billion by the start of 2025. In recent years, the Indian Banking Industry has witnessed several innovative measures including the roll-out of innovative banking models like Payments and Small Finance Banks, aimed at restructuring the domestic banking industry. Currently the Indian Banking Industry is valued at whopping Rs 81 trillion (US$ 1.31 trillion). With the Indian Banking Industry all set to become the fifth largest banking industry in the world by 2020 and third largest by 2025, India’s banking sector future looks extremely bright and growth-oriented.
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