Several factors favour high growth:

Demographic profile favours higher retail offtake - 55% of the population is in the 15-35 years age group

Capital expenditure by the Government and private industry is expected to grow at a high rate

Economic growth of about 10% p.a. in nominal terms

SME lending, a largely untapped market, presents a significant opportunity - SMEs account for 40% of the industrial output and 35% of direct exports

Regulatory and technological enablers leading to high growth:

The Banking system is technologically enabled with RTGS and cheque truncation in place

Improved asset management practices - Gross NPAs to Advances ratio reduced from 24-25% in 1993 to 7-8% in 2004

Investment opportunity across all segments in the Banking and Financial Services sector