There is no doubt in my mind that if the economic growth engine has to churn out a powerful performance, banks would, necessarily, have to be the prime mover. The domestic credit provided by the banking sector in India stands at an abysmally low level compared to many of our emerging Asian peers, let alone the advanced economies.
There is enormous scope for the banks to expand their business to areas/sectors hitherto lacking formal credit. 2  BIS central bankers’ speeches  Domestic Credit of the Banking Sector to GDP (in %)  10. Banks have to develop the ability to maintain high growth levels over a sustained period of time. They also need to develop strong linkages with the real sector.