Indian banking system better than BRIC counterparts

New Delhi: The Indian regulatory system is much better than that of China, Brazil and UK. The risk management systems are more advanced than China, Brazil and Russia and credit quality better than China, Brazil, Russia, UK and the U.S., reveals a survey.

According to a survey by industry body Federation of Indian Chambers of Commerce and Industry (Ficci), the Indian banking system has maintained its resilience and continues to provide growth opportunities. India’s banking technology systems are also considered to be better than Brazil and Russia.

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Some of the major strengths of the Indian banking industry, which makes it resilient in the current economic climate highlighted in the survey, were regulatory system (93.75 percent), economic growth (75 percent), and relative insulation from external market (68.75 percent). However, public, private and foreign banks have reported difficulty in hiring highly qualified youngsters due to high staff cost overheads, poaching of skilled quality staff and high attrition rates.

In the survey, majority of 69 percent of the respondents felt that the Indian banking industry was in an extremely good shape with a further 25 percent felt it was just good while 6.25 percent felt that the performance of the industry was average. The optimism is reflected in the fact that 53.33 percent of the respondents are confident of a growth rate of 15-20 percent for the banking industry in 2009-10 and over 20 percent growth rate for 2014-15.