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 gathered to discuss the sector’s future.
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.” He added 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, said, “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 stressed that India’s banking sector not only supports economic growth but must also ensure stability and resilience as it scales.
Deputy Governor Rao further elaborated on the inclusive growth trajectory: “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 added, “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.”
Parag Bhise, CEO & Executive Director, Nucleus Software, said, “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.”
The summit saw participation from CEOs and MDs of over 15 leading Indian banks and financial institutions. Panel discussions covered key issues shaping the sector, including strategies to accelerate credit flow, strengthen lending frameworks, and support productive sectors.
The Fintech panel, “Fintech 3.0: Improving Scale & Sustainability”, explored how next-generation fintech solutions, AI-driven analytics, and digital platforms can help banks scale efficiently without compromising sustainability.
The NBFC panel, “Credit for the Next Billion”, focused on extending credit to underserved segments and bringing the next billion consumers into India’s formal financial ecosystem.
Vishnu R. Dusad, Managing Director & Co-founder, Nucleus Software said, “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.”
Shereen Bhan, Managing Editor, CNBC-TV18, said, “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.”
The summit also felicitated Zarin Daruwala, Former CEO, Standard Chartered Bank, and Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank, for their 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.
