Banks have to grow 5-fold: McKinsey

Domestic banks will have to scale up their asset size five times over the next five years,if they want to cope with demand for capital from an economy that is clipping at near double-digits,says an industry report.

The report,prepared by McKinsey & Company,says the No 1 bank in the country (without naming State Bank) will have to scale up its asset size to USD 800-900 billion by 2015 from the current size of USD 200 billion (March 2009),while the No 10 will have grow to USD 90-100 billion by then.

The report further says the No 1 Chinese lender will have to grow its size to USD 4,000-4,500 billion by 2015,up USD 1,700 billion in 2009,while that of the No 10 lender will be USD 800-900 billion against the present USD 190 billion.