Banking

The banking sector is the most dominant sector of the financial system in India, and with good valuations and increasing profits, the sector has been among the top performers in the markets. According to a FICCI survey, the chief strong point of the Indian banking industry is the regulatory system, which has enabled India to carve a place for itself in the global banking scene. The regulatory systems of Indian banks are rated above China and Russia; and at par with Japan and Singapore.
The public sector banks (PSBs) maintained its dominance in the banking system. As on March 31, 2008, PSBs accounted for 69.9 per cent of the aggregate assets and 72.7 per cent of the aggregate advances of the Scheduled Commercial Banking (SCB) system. An exceptional feature of the reform of the public sector banks was the course of their financial restructuring.
Furthermore, a report "Opportunities in Indian Banking Sector", by market research company, RNCOS, forecasts that the Indian banking sector will grow at a healthy compound annual growth rate (CAGR) of around 23.3 per cent till 2011.
Banking, financial services and insurance (BFSI), together account for 38 per cent of India's outsourcing industry (worth US$ 47.8 billion in 2007). According to a report by McKinsey and NASSCOM, India has the potential to process 30 per cent of the banking transactions in the US by the year 2010. Outsourcing by the BFSI to India is expected to grow at an annual rate of 30–35 per cent.