Challenges from the regulatory perspective Re-orientation of the Indian banking structure 5. As the economy expands, a greater quantum of resources will be needed for supporting the growth process. The Indian banking sector also needs to catch up the likely acceleration in the credit to GDP ratio as the economy expands.
To support the economic growth as envisaged in the 12th Five Year Plan, the banking business needs to expand significantly to an estimated 288 trillion by 2020 from about 115 trillion in 2012 3. Given this, there is a need for reorienting the banking structure to make it more dynamic and flexible, while ensuring safety and systemic stability.