Banking and Finance

The magnitude of expansion of banking sector could be gauged from the fact that every single point rise in GDP brings with it 3 times expansion. And the Trillion Dollar economy racing to elevate to higher growth curve will definitely create immense opportunities and off course Challenges before the country.

The global economy is recovering from the worst financial crisis since the great depression and this Crisis has affected not only America but also European Union, U.K and Asia. Due to globalization, the Indian economy cannot be insulated completely from the present financial crisis in the developed economies. However, The Indian economy looked to be relatively insulated from the global financial crisis that surfaced in late 2000s. India has displayed the ability to recover from recession faster than the US or any other developed country. It is still the world’s second fastest growing economy and the credit goes to Indian Banking sector that plays a pivotal role in pushing the GDP growth rate over 8% per annum and The magnitude of expansion of banking sector could be gauged from the fact that every single point rise in GDP brings with it 3 times expansion.

Indeed, Indian economy was not affected much from global economic turmoil but it can’t be undermine that many of the severe challenges are clouding on the head and ready to jostle Indian economy. The current account deficit is likely to widen in the current financial year that started in April due to higher imports especially of oil, high inflation despite continuous raising the policy rate, Government budget deficit, huge FII outflow along with political uncertainty & corruption have been emerged as new challenges for Indian economy and needless to say it, directly or indirectly, broadens the responsibility of Reserve Bank of India & Indian banking sector. If the current precarious situation goes down from bad to worse, our economy could also experience slowdown.

Keeping in view these growing and significant issues, IBCHAM (Indian Business Chamber) has decided to constitute a separate and dedicated national council for banking & financial sector to take on the emerging challenges and opportunities of the financial sector and provide intellectual & workable road map for the competent authorities to protect and encourage the growth of its all stakeholders.