V Vaidyanathan on India’s Financial Strength and Investment Opportunities
India’s financial sector grows strong with low inflation, robust banking, digital infrastructure, and huge capital inflow, says IDFC FIRST CEO at Times Network Economic Conclave 2025.
IDFC FIRST CEO highlights India’s financial growth trends
The huge amounts of money that India has put into infrastructure have not only brought down the logistics costs but also made it possible for the country to garner large amounts of capital. This was the view of V Vaidyanathan, MD & CEO of IDFC FIRST Bank, who spoke at the 11th Times Network India Economic Conclave 2025.
When he talked about the financial sector, Vaidyanathan pointed out four main trends that are now shaping the economic and financial situation of the country:
1. Strong Banking System and Growing Capital Pool
“The Indian banking sector is the strongest that it has ever been, with a total net worth of around Rs 20–30 lakh crore and a loan book close to Rs 180 lakh crore,” Vaidyanathan commented. The sector has already attained nearly 2.8 times its size of a decade ago, owing to the challenges of demonetisation and COVID-19. At present, deposits are Rs 240 lakh crore and are increasing at a rate of about 10% a year; while the mutual funds have reached Rs 66 lakh crore. Such a huge base of domestic capital is now the backbone for financial, digital and public infrastructure development all over the country.
2. Unique Low Inflation with High Growth
Vaidyanathan pointed out that India is facing a situation of low inflation and high economic growth, which is uncommon and this setting is very much ideal for the financial industry to sell their capital to the investors much more efficiently than before. This macroeconomic stability acts as a magnet to bring in both local and foreign investments.
3. Growing Market Infrastructure
The emergence of a strong institutional framework has been regarded as one of the major factors that has increased the confidence of the investors. India’s financial system from policy makers to trading platforms is transforming quite quickly, being the basis for easier movement of investment and creating a strong investment environment.
4. Expansion of Digital Infrastructure
The development of digital platforms and technology is another factor that is adding to India’s capacity to lure in investments are the digital ones. Digital infrastructure is changing the manner in which the industries and the investors are dealing with the economy by making financial transactions quicker, more secure, and thereby, more accessible.
