India to be third largest domestic banking sector by 2050: PwC

According to a PriceWaterhouseCoopers report titled Banking In 2050, India could become the third largest banking sector by 2050 after China and US, leaving Japan, UK and Germany behind.

According to the report, “India has particularly strong long-term growth potential.”

Indian banking sector in general and the Reserve Bank of India were applauded post financial crisis for fiscal prudence.


Harsh Bisht, leader (Banking and Capital Markets), PwC India said, “Post downturn, Indian banks have become more efficient due to tighter credit assessment and disbursals, cost efficient model, weeded out non profitable and highly risky portfolios and increased the CASA substantially resulting in lower cost of funds for the bank.”


Indian banks have improved their cost to income ratio by 6 per cent on an average, he added.


India’s largest private sector bank, ICICI Bank improved its cost to income ratio from 53 per cent in 2007 to 38 per cent in 2010, owing to shift in strategy from aggressive growth to cost rationalisation. Continue reading