Sign in Subscribe
Banks (Finance)

India's Banking Sector Grows with Purpose, Shaping Country's Economic Ascent

Strategic Insights

— 1 min read

India's banking sector is transforming, driven by resilient growth, innovative technologies, and inclusive lending practices. The 3rd Banking Transformation Summit, presented by Nucleus Software, brought together regulators, bank leaders, and fintech innovators to chart the sector's future. Keynote speakers highlighted the sector's potential to power India's economic rise and contribute to the country's goal of becoming a developed economy.

Key Takeaways:

  • India's banking sector has demonstrated strong resilience and growth, with credit expanding at an average of 10.5% over the last five years.
  • Retail lending now constitutes 32% of total credit, while credit to MSMEs has grown steadily to form 18% of total lending as of March 2025.
  • India's economic rise demands banking muscle, with the country aiming to feature among the world's top 10 banks.
  • RBI Deputy Governor M. Rajeshwar Rao emphasized the sector's role in promoting inclusive growth, citing the need for affordable credit, insurance, and investment options for every citizen.
  • Parag Bhise, CEO of Nucleus Software, stressed the need for banking to be more than digital, combining technology, resilience, and inclusivity to build trust at scale.
  • The summit featured discussions on key issues shaping the sector, including navigating slower credit growth, improving scale and sustainability, and extending credit to underserved segments.
  • Vishnu R. Dusad, Managing Director of Nucleus Software, highlighted India's position as a global leader in digital banking, with UPI processing over 2,000 crore transactions worth Rs. 24.85 lakh crore in August 2025.
  • The summit concluded with a shared view that India's banks are not just growing, but growing smart, secure, and inclusive, poised to power the country's economic ascent.

Statistics:

  • 10.5% - average annual credit expansion over the last five years.
  • 32% - retail lending as a percentage of total credit.
  • 18% - credit to MSMEs as a percentage of total lending as of March 2025.
  • 40% - MSME credit needs currently met.
  • 2,000 crore - daily UPI transactions processed.
  • Rs. 24.85 lakh crore - value of UPI transactions processed in August 2025.
  • 30% - contribution of MSMEs to India's GDP.

Sources:

  • CNBC-TV18 3rd Banking Transformation Summit
  • RBI Deputy Governor M. Rajeshwar Rao
  • Ministry of Finance Secretary (FS) M. Nagaraju
  • Parag Bhise, CEO & Executive Director, Nucleus Software
  • Vishnu R. Dusad, Managing Director & Co-founder, Nucleus Software
  • Shereen Bhan, Managing Editor, CNBC-TV18
  • Zarin Daruwala, Former CEO, Standard Chartered Bank
  • Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank

Read more