Bank of Baroda bullish on India’s consumption demand prospects, says executive director

Roy said India's digital infrastructure buildup is ahead of that in even developed countries

Bank of Baroda is optimistic about prospects in India as consumption demand, investments and income generation are set to increase, a top official said. “India's burgeoning consumer base, skill availability, favourable demographics, rule of law and strong governance framework makes me bullish on India," Joydeep Dutta Roy, executive director of the state-owned lender, said in an interview with Moneycontrol.

He said India is now the land of opportunities for a large population that is aspirational for a better life and a better future. “This opens up huge possibilities on consumption demand, at-scale entrepreneurship, massive investments (public, private, foreign and domestic), increased income generation, improved education quotient and employability,” Roy said.

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According to Roy, India's digital infrastructure buildup is ahead of that in even developed countries.

"Starting with the identity layer to the financial layer to consent layer and now to the credit layer and e-commerce layer, India's digital transformation is helping achieve things at scale, in faster time and at significantly lower costs," he said.

Consumption demand

Senior officials of India’s third-largest bank said this is one competitive advantage that any other country will find very hard to replicate in quick time.

Earlier, Shanti Lal Jain, managing director of Indian Bank, told Moneycontrol that there’s bullishness on consumption demand in India.

"India has 1.4 billion people. Their income levels are increasing. The middle class is increasing and their spending is up. As a result, demand is growing. This is good for all the world, including India, and more particularly, for the banks," said Jain.

The International Monetary Fund raised its GDP growth forecast for India to 6.1 percent for FY24 from 5.9 percent, “reflecting momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment."

Bank of Baroda reported an 87.7 percent rise in net profit to Rs 4,070 crore for the April-June quarter. The bank’s gross non-performing assets declined to 3.51 percent from 6.26 percent a year earlier.

The lender’s shares, which ended at Rs 190.80 on the BSE on August 21, have gained over 60 percent in a year.