Indian banking set to become fifth largest by 2020: KPMG-CII report

Indian banking sector is expected to become fifth largest in the world by the year 2020, KPMG said in a report prepared in association with the Confederation of Indian Industry (CII). "If we look at statistics, India being one of the top 10 economies of the world and with relatively lower domestic credit to GDP percentage provides great opportunity for the banking sector to grow. Indian banking is expected to become fifth largest by the year 2020 and third largest by the year 2025," the KPMG-CII reporton the banking sector said.

It expects bank credit to grow at 17% CAGR (compound annual growth rate) in the medium-term leading to increased credit penetration. The need for having Indian banks among the top global banks is debated recently. The country's largest lender State Bank of India (SBI) is at the 38th position based on the size of assets, while India's largest private sector lender ICICI Bank is at 99th position. These are the only two Indian banks that figure in the list of top 100 banks in the world.

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