India’s Rural Economy Is Creating Great Opportunities For Banks: Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank
With only 7.2 crore customers out of the 21 crore credit eligible Indians, the banking sector awaits new growth and opportunities in the country. Panel discussions and keynote addresses at the 11th BW MAGNA Awards 2019 delved further into the future of banking.
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While addressing to the audience at the BW MAGNA Awards 2019, Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank discussed opportunities in the Indian rural economy waiting to be disrupted by banks. During his keynote address he enlightened the room on the topic, “Future of Banking” – The trends and challenges that will shape the industry.
“The government’s focus towards skill development, rural development and affordable housing has evolved the Indian economy. We have witnessed a change in the behavioural patterns of the modern day consumer’s savings and investment plans. The formalization of the economy has resulted in the reduction of physical assets to financial assets. By 2022 the reduction of these assets is said to come down to 35%. There has been in an increase in consumers possessing credit/debit cards which is currently at its peak. Our bank today serves 1.3 crore micro banking customers which has affected the entire nation with regards to savings and credit in the space. Lot of micro credit banking customers have opened with us and we evolved too by providing round the clock customer touch points outside our banking premises. We at Bandhan Bank have 4000 outlets across the country. The next phase of opportunity comes from 18.8 crores eligible customers who seek credit facilities”.
Tax reforms and digitization are key ingredients to boost the economy. The banking sector has tremendous growth in reaching out to the rural areas of India. Chandra Shekhar Ghosh stressed on dispersing technological tools to meet the requirement of Indians living outside the top 8 metro cities.
During his address he also gave importance to involvement of banks with the MSME sector. According to him SMEs and MSMEs are the backbone of the economy creating employment and further growth to the economy. His keynote address was followed by a fireside chat with Dr, Annurag Batra, Editor-in-chief, BW Businessworld and exchange4media at the BW MAGNA Awards 2019.