The Indian banking sector is poised to become the world's third largest in asset size over the next 14 years. "The domestic banking industry is set for an exponential growth in the coming years with its assets size poised to touch $28,500 billion by the turn of the 2025 from the current asset size of $1,350 billion (2010)" says an IBA-Ficci-BCG report, titled "Being five-star in productivity--Roadmap for excellence in Indian banking, prepared for the Indian Banks Association.
The report further says China will overtake the US as the world's largest banking industry by 2015, when it is expected that the asset size of Chinese banks will be nearly $30,000 billion, while that of the US will be around $28,000
Releasing the report, Bank of Baroda chairman and IBA chief M D Mallya said, "the global banking crisis has highlighted the perils of irresponsible banking and through this theme of productivity excellence, we wanted to focus on the tremendous scope for our banks to improve their productivity and consequently, their profitability."
The report sets out an action agenda for banks, based on insights from an extensive productivity benchmarking exercise conducted across 40 banks which highlights that banks have to strive for excellence on five dimensions: branch sales and service, new channels, lean operations, organizational design and bad debt management.
