Manoj: Would you like to begin by giving a perspective of Indian financial system versus the financial system in some large countriesthat you think we can be inspired from?
Dr Subramanian: The Indian banking sector can claim credit in domestic comparison. But when it comes to international comparison, I think on most metrics, the Indian banking sector has miles to go.
If you look at the credit penetration metric - private sector credit to GDP, in India, it is about 52-53%. In other words, half of our GDP is out of private sector credit. The average for the OECD (The Organization for Economic Co-operation and Development) economy is of the order of 160%. We are one-third of that average. Now, if you take a section of the country like north-east, and compare it to OECD economies, we are 1-16th of that average.
Again, if you look at the number and scale of banks in India and keep in the mind that India is the 5th largest economy in the world, we should have about 7 or 8 banks in the global top 100. And yet we have only 1 bank in global top 100, and that is 55th rank - State Bank of India.
Look at any large economy, say Japan in 1980s. Japan, in its heyday, had 18 banks in the top 100. Today, similarly, 18 of the top 100 banks are Chinese.
Diese Geschichte stammt aus der March 2021-Ausgabe von Banking Frontiers.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der March 2021-Ausgabe von Banking Frontiers.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Key Russian central bank official leaves
The First Deputy Governor of Bank of Russia Olga Skorobogatova is leaving the central bank in early December.
Better prospects for Swiss banking in 2024, says new study
The year could see revitalization of the banking to some extent, finds the study by Swiss Bankers Association:
Ease of use, personalization & consistent engagement promotes digital loyalty
Murari Lal, Head - Digital Initiatives, Shivalik Small Finance Bank, delves into platforms, loyalty and Al:
From Feet on Street to Fingers on Screen
Nippon India Mutual Fund is driving into newer customer segments by leveraging voice and vernacular as the drivers, reveals the company's Chief Digital Officer Arpanarghya Saha:
Digitization embraces the senior citizens
Among other projects, Shriram Capital completely transformed the 2-wheeler loan origination system, reveals the company's Chief Digital Officer Ajay Thomas:
Making of the most connected bank in Bangladesh
A stream of digital initiatives is transforming Mutual Trust Bank and its customer engagement, reveals Khalid Hossin, who heads the bank's digital banking division:
Digital embraces Archaeological Tourism
Chief Digital Officers are leading tremendous transformation initiatives. Five CDOs reveal their fascinating journey and their ambitious goals:
Tech will bridge Advisory and Education
Venkatesh Naidu, CEO, Bajaj Capital Insurance Broking:
AI bridges Protection and Prevention
Gyanendra Singh, Chief Technology Officer, Aviva India:
Bridging Products & Distribution for Rural Markets
Vikas Mittal, Deputy CEO, and Amit Thapliyal, Chief Technology Officer, Magma HDI General Insurance: