Penetration levels suggest healthy potential and target market still expanding Despite the aggressive growth in most financial segments over the past decade, there is still the under-penetration of most financial products/services. Even though Indian banking credit has enjoyed a significant growth during the period 2003–08, credit penetration remains well below regional benchmarks, which is suggestive of healthy growth potential in the medium term.
Indian financial sector offers structural growth opportunities and an expanding target market. In India, it is the household sector which generates largest savings in relation to the private corporate and public sectors, in that order. A significant proportion of household financial savings is routed through the banking system.