how has globalization impacted the banking sector in india along with current data and statistics in 400 words

Globalization has significantly impacted the banking sector in India, leading to a more competitive and efficient industry.

Firstly, globalization has led to the entry of foreign banks in India, increasing competition. According to the Reserve Bank of India, as of 2020, there are 46 foreign banks operating in India. This has pushed domestic banks to improve their services and products to retain their market share.

Secondly, globalization has facilitated the adoption of advanced technology in banking. The use of digital banking services has surged in recent years. According to a report by the Boston Consulting Group, digital transactions in India are expected to reach $3.3 trillion by 2025, a three-fold increase from 2020. This has improved the efficiency of banking services and made them more accessible to the public.

Thirdly, globalization has led to the liberalization of financial markets. This has allowed Indian banks to raise capital from international markets, strengthening their capital base. According to the World Bank, the capital to assets ratio for Indian banks was 7.1% in 2019, higher than the global average of 6.1%.

However, globalization has also exposed Indian banks to global financial risks. The global financial crisis of 2008 had a significant impact on Indian banks, with the non-performing assets ratio increasing from 2.3% in 2008 to 2.9% in 2009.

In conclusion, globalization has had a profound impact on the banking sector in India. It has led to increased competition, adoption of advanced technology, and liberalization of financial markets, making the industry more competitive and efficient. However, it has also exposed the sector to global financial risks. Therefore, it is crucial for Indian banks to manage these risks effectively to reap the benefits of globalization.