India is amongst the top 10 economies in the world. By end of 2015, India is expected to be a major business hub and the Indian Banking scenario would become the back bone of finanacial development.
Indian Banking Industry has the potential to become the fifth largest banking industry in next 10 years. With India being proposed as the next important business and financial hub, it has brought a revolutionary change in the banking industry. This would see an era of major technological innovations in the banking Industry, with most banking transactions being done online. This adds more speed and accuracy with minimum scope of human error and manipulation.
This revolutionary evolution of banking has reached out to tier 2 and tier 3 cities as well. About 50% banking ATMs are operating in tier 2 and tier 3 cities.
With these growth numbers, banking industry has tremendous potential to grow and hire in India.
- India’s banking sector is currently valued at Rs 81 trillion (US$ 1.31 trillion).
- Indian banks total asset size is recorded at US$ 1.5 trillion in FY12.
- Total banking sector assets have increased at a Compound Annual Growth Rate (CAGR) of 8.2% to USD1.5 trillion during FY10–12.
India has one of the fastest growing Financial services Industry in the world with an asset turnover growth of over 30 % annually. The Indian Financial Services industry has been dominated by banking sector, although its major revenue comes from the Insurance sector. We can definitely see it getting a modern outlook and increasing use of technology.
Product innovations and increasing portfolio of services offered to customers is / are leading to healthy growth in insurance and NBFCs.
- India's life insurance segment collected new business premiums worth Rs 11,742.7 crore (US$ 1.84 billion) for April–May 2013.
- Over FY03–FY12, life insurance premiums expanded at a Compound Annual Growth Rate (CAGR) of 20.1%.
- Total asset under management (AUM) of the mutual fund industry have clocked a Compound Annual Growth Rate (CAGR) of 16.8% over the period FY07-13 to reach US$ 150 billion.
- Non-Banking Financial Company (NBFC) managed a Credit Growth at a Compound Annual Growth Rate (CAGR) of 35 % over FY 2007-12.