CII in association with its Knowledge Partner, Deloitte released a publication against the backdrop of the ‘7th edition of Banking Colloquium 2014: Fuelling Growth’ organized by CII on 19 September, 2014 at Kolkata.
Emerging from the shadows of recession, a stronger and a resurgent India is well poised to grow at 5 to 7% over world economic growth and continue to power ahead in terms of domestic demand and investment attractiveness.
The relentless push from the banks in the past to expand business led to a breach in their risk management systems and subsequently, increased regulatory focus on improving such systems as well as increased compliance risk and regulation costs. With economic recovery on the horizon, the demand for credit is set to witness a dramatic increase once again in the coming years and therefore, a more robust risk management would be critical in minimizing any fresh slippages or adverse movements in asset quality without deterring the impending growth.
It is also brought out that the next wave of growth would entail ‘inclusive’ participation from all regions and all social groups – especially from the eastern and north-eastern regions that remain on the periphery of the financial mainstream. Government initiatives combined with diligent execution by all commercial banks would surely enable India to enhance financial inclusion and, thus unlock its full demographic potential.
The report will help the industry understand the prospects, challenges and the road ahead in fuelling the growth of the economy with the help of a vibrant banking sector.