The Indian banking market is growing at an
astonishing rate, with assets expected to reach US$1 trillion by 2010. An
expanding economy, middle class, and technological innovations are all
contributing to this growth.
A new Celent report, Overview of Indian
Banking Market, examines the impressive growth of this industry,
largely due to an expanding economy and growing consumer middle class in
need of financial services. India's economy is growing at a rate of 8%,
with banking assets increasing at a CAGR of 24% from 2001 to 2006, from
US$374.4 billion in 2003 to US$616.15 billion in 2006. While public sector
banks still dominate India’s banking industry, the private sector is
growing, with global players now actively competing with domestic banks.
The country’s middle class accounts for over 320
million people. In correlation with the growth of the economy, rising
income levels, increased standard of living, and affordability of banking
products are promising factors for continued expansion.
The Indian banking Industry is in the middle of an
IT revolution, focusing on the expansion of retail and rural banking.
Players are becoming increasingly customer-centric in their approach,
which has resulted in innovative methods of offering new banking products
and services. Banks are now realizing the importance of being a big player
and are beginning to focus their attention on mergers and acquisitions to
take advantage of economies of scale and/or comply with Basel II
regulation.
“Indian banking industry assets are expected to
reach US$1 trillion by 2010 and are poised to receive a greater infusion
of foreign capital,” says Prathima Rajan,
analyst in Celent's banking group and author of the report. “The banking
industry should focus on having a small number of large players that can
compete globally rather than having a large number of fragmented
players."
This report provides a detailed overview of the
Indian banking industry, analyzing the various type of participants,
market needs, etc. The report examines the trends and drivers that are
reshaping the market, from technology to maturation. It also details the
various issues that need to be addressed by market participants in order
to seize the tremendous opportunities available in India.
The 44-page report contains 19 figures and 7 tables.
A table of contents is available
online.
