India is expected to double its share of the global banking revenue in the next few years, according to a report released by McKinsey, the knowledge partner for the Bankers' Conference (Bancon) 2010. Bancon is organised by the Indian Banks' Association and is hosted by Central Bank of India.
In 2009, India's banking sector had a 1.5 per cent share of the global banking revenue. This is expected to touch 2.8 per cent by 2015, said Mr Ranjit Tinaikar, Partner with McKinsey and Company, at the curtain raiser of Bancon.
At least five-six Indian banks are expected to figure in the league of top 100 banks in the next decade.
Growth not uniform
Though the Indian banking sector has grown, the growth has not been uniform. The gap between the top performer and the rest of the industry is widening, he said. Among the public sector banks, while the top performer's assets have grown at a compounded annual growth rate of 29 per cent, the median industry growth is only 21 per cent. The share of the top five banks in terms of market capitalisation has increased to 66 per cent in 2010 from 55 per cent in 2005. The pivotal differentiators between the best performers and the rest of the industry would be the distinctive customer experience, human capital management, risk management practices, the use of technology and the operating model, Mr Tinaikar said. Also speaking on the occasion, Mr S. Sridhar, Chairman and Managing Director, Central Bank of India, said the conference would give bankers an opportunity to interact and find solutions.
Mr Alok Misra, Chairman and Managing Director, Bank of India, said almost 51 per cent of the Indian population was financially excluded and it would be a challenge for the banking industry to reach out to them.
Bancon will be held on December 3 and 4 in Mumbai. The seminar will be inaugurated by the RBI Governor, Dr D. Subbarao, with the keynote address being delivered by Mr R. Gopalan, Secretary (Financial Services). The Finance Minister, Mr Pranab Mukherjee, will deliver the valedictory address on the last day of the seminar.
Top bankers, including the chiefs of SBI, ICICI Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India and HDFC Bank, are expected to participate in the meet.
Mr Aditya Puri, Managing Director of HDFC Bank, said the industry would see credit growth of 18-20 per cent growth this fiscal.
Investment demand, which was linked to Government spending, was still to pick up, he said.
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