The document summarizes opportunities and challenges for the banking sector in India. It notes that India has one of the fastest growing economies in the world, fueled by a growing middle class and consumption growth. However, banking penetration remains low compared to other countries, with many opportunities remaining in areas like consumer loans, insurance, wealth management and financial inclusion. The banking sector has grown strongly but still faces challenges in areas like reducing costs, improving governance and transforming to offer more specialized products and services.

1. Doing Business in India The Big Picture A Banker’s Perspective US – India Business Summit November 29, 2006 Dr. Anil K Khandelwal Chairman & Managing Director Bank of Baroda

18. Consumer Loans / GDP(%) Mortgages / GDP(%) Credit Cards / GDP (%) Other Retail Loans / GDP (%) Consumption boom in India In each of the area, huge untapped potential left The Big Picture…

19. Mutual Funds – Global Perspective Mutual Funds as a % of GDP Global Investment Fund Asset Pool Low Penetration – Indian industry still in early stages Source : CLSA Asia Pacific Markets The Big Picture…

20. Life premium/ GDP (%) Source : Swiss Re Report 2005 Insurance Penetration – Global Landscape Non Life premium/ GDP (%) Insurance density (US$ premiums per capita) Low Penetration – A large potential still untapped The Big Picture… 10 10 Indonesia 16 13 China 4.5 18 India 95 188 Malasiya 495 1211 South Korea 1203 1366 Australia 2122 1753 US 1093 2474 France 790 2954 Japan 1311 3287 UK Non Life Life Country

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