Indian banks will grow at up to 15%: Kamath

Veteran banker K.V. Kamath on Thursday said India's banking industry is poised to grow at 10-15% this year, despite the World Bank warning of a global recession in 2023.

On Tuesday, the World Bank's Global Economic Prospects report mint ANNUAL BANK warned of a global recession this year, adding a sharp and long-lasting slowdown is expected to hit developing countries hard due to elevated inflation, abrupt interest rate spikes, the resurgence of the covid-19 pandemic, reduced investment, and geopolitical tensions caused by Russia's war in Ukraine.

Speaking at an interaction at Mint's 15th Annual Banking Conclave, Kamath sounded bullish on the prospects of the Indian banking system, predominantly on the back of the fast-growing digitalization of financial services.

"Banks have improved both in terms of capital base and the quality of the book. Growth rates (in banking) mimic GDP growth and may be 20% higher.

Deposit growth will be fairly adequate to meet credit growth, which should be around the same number-10-15% this year, depending, of course, on the bank," Kamath said.

Kamath said that in today's environment, saving products, such as mutual funds, are also gaining wide recognition, but eventually, that money comes back to the market either as equity or as debt products to support the industry.

He said there would be double-digit growth in deposits and, therefore, it is an unnecessary fear that low deposit growth in banking will impact the financing for industrial growth.

"Double-digit growth is good growth," Kamath said.