Digital platforms to drive 20% of Indian banks' profit by 2020

Digitisation will happen sooner rather than later.

According to CLSA, although FY15 was a challenging year, Indian banks continued to make investments in new areas, most prominent of which was digitisation. This has emerged as a clear vertical within banks, with business heads reporting directly to CEOs and acting as the centroide for all funcional departments - front and back.

CLSA's review shows that the cover pages of six out of 13 banks' annual reports highlighted their emphasis on digital platforms.

Here's more from CLSA:

We forecast by the fiscal year ending in March 2020, digital platforms would drive US$400-500bn of banks' balance sheets and 20% of profit. 

However, given the progress so far and the pipeline of new launches, it is quite likely that our estimates will be met sooner, rather than later.