Why Banking Cannot Go Fully Digital In India Yet

As India targets a 30 trillion dollar economy under the Viksit Bharat 2047 vision, the banking sector faces a critical challenge — how to scale loan growth nearly tenfold without triggering a surge in bad loans. Speaking at the BT Banking Summit, Nidhu Saxena, MD and CEO of Bank of Maharashtra, emphasises that this growth must be sustainable, compliant and risk-aware. She highlights that banks must carefully balance expansion with strong regulatory discipline, while also preparing for emerging risks, including those linked to rapid digital adoption.

Saxena points out that banks alone cannot fund India’s ambitious growth journey. A broader financial ecosystem, including development finance institutions and innovative financing models, will be essential, particularly for long-gestation infrastructure projects. She also reflects on the digital transformation of banking post-COVID, noting that while technology has improved efficiency and reduced customer acquisition costs, physical branches continue to play a crucial role, especially in rural and semi-urban India. The discussion underlines that India’s path to becoming a developed economy will depend not just on faster credit growth, but on building a resilient and well-balanced financial system.