India to rank third in domestic banking by 2050: PwC

India is poised to become the third largest domestic banking sector by 2050 after China and the US, a survey by a leading global accounting and consultancy firm said.

China could overtake the US in terms of the size of their domestic banking sector around 2023, while India's rate of growth, by contrast is expected to overtake that of China's in the long run, as it has more catch-up potential and its working-age population growth will be much stronger in the long-term, the survey by PriceWaterHouse Coopers said.

The combined domestic banking assets of the 'E7' emerging economies of China, India, Brazil, Russia, Mexico, Indonesia and Turkey will exceed those in the G7 countries like USA, Japan, Germany, the UK, France, Italy and Canada, sooner than predicted before the financial crisis, the survey said.

These emerging economies' banking sectors are expected to outgrow those of the developed economies by an even greater margin than PwC had originally projected before the financial crisis.

As per PwC's latest survey, by 2050, E7 countries could have domestic banking assets and profits exceeding those of G7 countries by around 50%.

China and India could have a combined share of around 35% of global banking assets by 2050. The US, Japan and Western Europe are all projected to see large falls in their share of global banking assets in the coming decades,PwC's leader for banking industry, Harsh Bisht said.