Banking Boldly: India’s Play for Global Glory

India’s banking sector is not just growing-it’s growing with purpose. This was the key takeaway from the CNBC-TV18 3rd Banking Transformation Summit, presented by Nucleus Software, where regulators, bank leaders, and fintech innovators convened to chart the sector’s future.

3rd Banking Transformation Summit 2025

RBI Deputy Governor M. Rajeshwar Rao highlighted the sector’s resilience and growth: India’s banking sector has demonstrated strong resilience and growth, with credit expanding at an average of 10.5% over the last five years. Addressing a gathering of banking sector experts and leaders at a banking summit Rao informed that retail lending now constitutes 32% of total credit, while credit to MSMEs which contribute 30% to India’s GDP has grown steadily to form 18% of total lending as of March 2025, reflecting the sector’s important role in driving Viksit Bharat.

Building on this, M. Nagaraju, Secretary (FS), Ministry of Finance, made it clear: India’s economic rise demands banking muscle. “As we transition from the world’s fourth-largest economy to the third, Indian banks must aim for global recognition by featuring among the world’s top 10. This requires building larger institutions with secure capital bases and sustained credit growth,” he said.

Nagaraju stressed that India’s banking sector not only supports economic growth but must also ensure stability and resilience as it scales. By strengthening capital bases and expanding credit sustainably, banks can play a central role in powering India’s rise on the global stage.

RBI Deputy Governor M Rajeshwar Rao elaborated on the inclusive growth trajectory of the sector. “The rise in retail and MSME lending reflects how the sector is deepening its reach and supporting productive growth. The goal is not just universal bank accounts, which Jan Dhan Yojana has largely achieved, but affordable credit, insurance, and investment options for every citizen. Credit directed toward MSMEs, infrastructure, and rural India ensures a Samaveshi Viksit Bharat,” he said.

Rao added further insights on the opportunities ahead. “While 40% of MSME credit needs are currently met, this also represents a huge potential for expansion. Banks and financial institutions have an opportunity to bridge this gap, bringing access to productive sectors and contributing to Bharat’s next phase of inclusive growth,” he said.

Parag Bhise, CEO & Executive Director, Nucleus Software, in his keynote emphasised “Banking today must be more than digital-it must be AI-powered, credit-driven, and purpose-built for Bharat. The future belongs to banks that can combine technology, resilience, and inclusivity to build trust at scale. Together with regulators and financial institutions, we are shaping banking that not only powers India but globalises Bharat.”

CEOs and MDs of over 15 leading Indian banks and financial institutions participated in the summit, engaging in a series of panel discussions on key issues shaping the sector. The discussions kicked off with “Navigating Slower Credit Growth: How Banks Can Boost Lending and Build Bharat“, Dr. Debadatta Chand, MD & CEO, Bank of Baroda; Ashok Chandra, MD & CEO, PNB; Amara Ram Mohan Rao, MD, SBI; Rajiv Anand, MD & CEO, IndusInd Bank; K.V.S. Manian, MD & CEO, Federal Bank and Rajneesh Karnatak, MD & CEO, Bank of India deliberated in conversation with Latha Venkatesh of CNBC-TV18 on strategies to accelerate credit flow, strengthen lending frameworks, and support productive sectors across India.

Next up, the Fintech panel, “Fintech 3.0: Improving Scale & Sustainability”, brought together Anubrata Biswas, MD & CEO, Airtel Payments Bank; Sohini Rajola, ED-Growth, NPCI; Upasana Taku, Co-Founder & CFO, MobiKwik; Santosh Aggarwal, CEO, Paisabazaar; Amrita Sirohia, Co-Founder, INDMoney; and Rishi A. Chhabra, Country Manager, India, Visa, moderated by Ritu Singh of CNBC-TV18. The conversation explored how next-generation fintech solutions, AI-driven analytics, and digital platforms can help banks scale efficiently without compromising on long-term sustainability – a masterclass in growing smart, not just big.

The NBFC panel, “Credit for the Next Billion”, featuring Raul Rebello, MD & CEO, Mahindra Finance; Jairam Sridharan, MD, Piramal Finance; Sudipta Roy, MD & CEO, L&T Finance; and Aseem Dhru, MD & CEO, SBFC, in conversation with Prashant Nair of CNBC-TV18. The panelists explored strategies to extend credit to underserved segments, innovate financing models, and bring the next billion consumers into India’s formal financial ecosystem – proving that when it comes to inclusive finance, the next billion isn’t just a number; it’s an opportunity waiting to be seized.

Adding further industry perspective, Vishnu R. Dusad, Managing Director & Co-founder, Nucleus Software, highlighted India’s position as a global leader in digital banking: “India’s contribution to global real-time payments is a testament to our leadership in digital banking. With UPI processing over 2,000 crore transactions worth Rs. 24.85 lakh crore in August 2025, India is not just adopting technology – we are driving the future of global finance. Our journey is about more than growth; it’s about reshaping banking for both urban and rural India, making financial services truly inclusive and accessible for all,”Dusad said.

Shereen Bhan, Managing Editor, CNBC-TV18, reflected on the summit’s role in shaping critical dialogue. “The summit has become a critical platform for discussing how India can harness technology, credit, and innovation to drive inclusive growth. With banks playing an increasingly central role in the economy, dialogues like these are essential to shaping policies and strategies for a Viksit Bharat,” Bhan said.

The summit also felicitated Zarin Daruwala, Former CEO, Standard Chartered Bank, and Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank, honouring their long-standing contributions to India’s banking sector.

The 3rd Banking Transformation Summit concluded with a shared view: India’s banks are not just growing-they are growing smart, secure, and inclusive, poised to power Bharat’s economic ascent while staking a claim among the world’s top economies.