The share of domestic lenders in the global banking space is slated to almost double to 2.8% by 2015 from the present 1.5%, on the back of a 18-20% annual growth, says a McKinsey & Company report.
"The share of the domestic banking industry within the global space will almost double to 2.8% by the end of fiscal 2015. This was 1.5% at the end of FY09", says the McKinsey report, adding the banking and financial sector will remain the mainstay of the economy.
This massive growth will see the underlying assets of the domestic banks touching $three trillion and deposits scaling to around $2.3 trillion, adds the report.
"At the end of FY09, the revenue of the domestic banking industry stood at $2,850 billion, which will scale to nearly $4,000 billion by the end of FY15," the report further said.
The report further says that at least five-six domestic banks will be in the global 100 league over the next decade. Similarly, there will be faster consolidation amongst the banks too.
Currently, the top five banks lead by State Bank of India, ICICI Bank, and Punjab National Bank, will rise further to 66% by the end of this fiscal in terms of market capitalisation from 55% in 2005.
During the past one decade, the revenues of the domestic banks grew more than four-fold from $11.8 billion in 2001 to $46.9 billion in 2010, while their net profit soared nearly nine-fold to $12.06 billion in 2010 from a paltry $1.41 billion in 2001.