Overview of Indian Banking Market
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, , 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.Members of Celent's Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left. Non-members should contact firstname.lastname@example.org for more information.