Trend in Return on Assets (RoA) and Return on Equity (RoE)
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Source: RBI data and Dun & Bradstreet Research
Factors Shaping the Indian Banking Industry
Untapped Opportunity – size of Indian market for financial services With a population base of ~ 1.3 billion, with ~50% being in the 15-25 age bracket, India is a huge and growing market for financial services. (Source: Census India). Financial Inclusion is the key catalyst for the next phase of growth in the banking sector. It aims at a widespread of financial services to those people and enterprises that still do not have any access to financial sector services. The objective is to promote financial literacy and consumer protection amongst the masses so that they can take correct financial decisions as this will also help in overall economic progress of the country. India possesses immense opportunity for the growth of financial inclusion as the percentage of banking population accounts for only 53.1% as compared to 93.6% in the United States and 98.8% in Germany for 2015. The proportion of adult population with individual bank accounts has gone up from 35% in 2011 to 53% in 2015.
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