In­dian banks to be among global top 20

The Pak Banker - - Company& -

NEW DELHI: The decade gone by has brought change to In­dia at an un­prece­dented pace. Among the many trans­for­ma­tional de­vel­op­ments of these years, I would pick three that were truly mo­men­tous in their im­pact. First, we crossed per capita GDP of $500 and $1,000 in the same decade.

This had tremen­dous im­pli­ca­tions for sav­ings growth, con­sump­tion de­mand and the abil­ity to fi­nance in­vest­ment in the coun­try. Sud­denly, so many pos­si­bil­i­ties emerged, not only for growth in tra­di­tional busi­ness seg­ments but also for build­ing a whole new set of busi­nesses, to meet the needs as­so­ci­ated with this up­ward mi­gra­tion of large sec­tions of our peo­ple. Sec­ond, In­dia quickly adopted and lever­aged de­vel­op­ments in in­for­ma­tion and com­mu­ni­ca­tions technology, in some cases leapfrog­ging in­ter­me­di­ate stages of devel­op­ment.

This en­abled the quick scale up of new par­a­digms of dis­tri­bu­tion and ser­vice de­liv­ery in a range of ar­eas. Third, the In­dian cor­po­rate sec­tor emerged from a pe­riod of re­struc­tur­ing and repo­si­tion­ing with healthy fi­nances and glob­ally com­pet­i­tive qual­ity and cost met­rics. This en­abled it not only to lever­age on grow­ing do­mes­tic de­mand, but also to ex­pand out­side In­dia, ac­quir­ing back­ward and for­ward link­ages, mak­ing In­dian brands known glob­ally and ac­quir­ing mar­quee global brands.

The fi­nan­cial sec­tor was quick to re­spond to these de­vel­op­ments and meet the emerg­ing fi­nan­cial ser­vices needs of In­dian busi­nesses and house­holds. The rise in house­hold in­comes cre­ated a ro­bust and sus­tained growth op­por­tu­nity for in­ter­me­di­a­tion of sav­ings through a range of prod- ucts, and for fi­nanc­ing house­hold as­set cre­ation.

The fi­nan­cial sec­tor re­sponded to this op­por­tu­nity by ex­pand­ing dis­tri­bu­tion, lever­ag­ing technology for im­proved ser­vice de­liv­ery and in­creas­ing ac­cess to af­ford­able re­tail credit. It part­nered In­dian in­dus­try in its global foray, while de­vel­op­ing ca­pa­bil­i­ties to meet its needs in a range of ar­eas from trea­sury so­lu­tions to technology-en­abled trans­ac­tion bank­ing.

Just as the In­dia of 2010 is very dif­fer­ent from the In­dia of 2001, so will the In­dia of 2020 be very dif­fer­ent from the In­dia of to­day. The dif­fer­ence per­haps is that to­day, based on the ex­pe­ri­ence of the last few years, we have greater con­fi­dence and abil­ity to en­vi­sion what that fu­ture could be, than what we did ten years ago. At cur­rent growth rates, we will dou­ble per capita GDP again in the next ten years. -PB News

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