SYNOPSIS

Title: A STUDY ON COUNTRYS ECONOMIC GROWTH THROUGH BANKS

REFERENCE TO (AXIS BANK)

Abstract

India’s financial sector has faced many challenges in recent decades, with a large, negative, and
persistent credit to GDP gap. We examine how cyclical financial conditions affect GDP growth
using a growth-at-risk (GaR) approach and analyze the link between bank balance sheets, credit
growth, and long-term growth using bank-level panel regressions for both public and private
banks. We find that on a cyclical basis, a negative shock to credit or a rise in macro vulnerability
all shift the distribution of growth to the left, with lower expected growth and higher negative
tail risks; over the long term, the results indicate that higher credit growth, arising from better
capitalized banks with lower NPLs, is associated with higher GDP growth

1. INTRODUCTION OF THE STUDY

India is already the fastest-growing economy in the world, having clocked 5.5% average gross
domestic product growth over the past decade. Now, three megatrends—global
offshoring, digitalization and energy transition—are setting the scene for unprecedented
economic growth in the country of more than 1 billion people.
“We believe India is set to surpass Japan and Germany to become the world’s third-largest
economy by 2027 and will have the third-largest stock market by the end of this decade,” says
Ridham Desai, Morgan Stanley’s Chief Equity Strategist for India. “Consequently, India is
gaining power in the world order, and in our opinion these idiosyncratic changes imply a once-
in-a-generation shift and an opportunity for investors and companies.”

All told, India’s GDP could more than double from $3.5 trillion today to surpass $7.5 trillion by
2031. Its share of global exports could also double over that period, while the Bombay Stock
Exchange could deliver 11% annual growth, reaching a market capitalization of $10 trillion in
the coming decade.
In a new Morgan Stanley Research Bluepaper, analysts working across sectors look at how this
new era of economic development could bring about staggering changes: boosting India’s share
of global manufacturing, expanding credit availability, creating new businesses, improving
quality of life and spurring a boom in consumer spending.

“In a world that is currently starved of growth, the opportunity set in India must be on global
investors’ radar,” says Chetan Ahya, Morgan Stanley’s Chief Asia Economist. “India will be one
of only three economies in the world that can generate more than $400 billion annual economic
output growth from 2023 onward, and this will rise to more than $500 billion after 2028.”

2. NEED OF THE STUDY

It offers payment facilities to various local and international business houses. The banking
sector provides financial stability to the Indian economy. It also offers safe and secure
financial services to help people. The services count money orders, cash deposits, and cash
card services.

3. SCOPE OF THE STUDY

The economic scope covers all the central issues faced by society, including economic
decline and growth, poverty, unemployment, budgeting, etc. Answer. Economics is regarded
as a social science; it studies how people in an economy employ the already scarce resources
with or without using money. The purpose of this study is to examine the long-term
association between banks' performance and the economic growth of a developing economy:
India

4. OBJECTIVES OF THE STUDY

 To It plays an important role in providing funds to different priority sectors like
Agriculture,
 To Small scale industries, trading enterprises, real estate, etc.
 To Indian banking sector helps a lot in business development by developing strong
ties with foreign countries through establishing branches
5. RESEARCH METHODOLOGY
However, the primary goal of central banks is to provide their countries' currencies with price
stability by controlling inflation. A central bank also acts as the regulatory authority of a
country's monetary policy and is the sole provider and printer of notes and coins in circulation

Tools & Data Collection Techniques:

Sources of data- After defining the have a look at questions and growing the research design
plan, the task of statistics amassing started out. Both number one and secondary data were
gathered with a view to construct this challenge report.

Primary Data: Data accumulated from original assets are considered primary records. It is first
accumulated by means of a research agency that makes use of the information for the primary
time.

Here, employees are the key information vendors. Employee personnel interviews are
accompanied by questionnaires to gather the important thing facts. In order to get the vital facts
on points, a trendy set of questions is installed. Primary information are those which are in the
beginning acquired, are of an original nature, and consist of direct commentary or
communication. Visits to the enterprise are used to collect the vital data.

Secondary Data:

Some secondary sources had been used to assemble this information. This statistics may be in
both public and unpublished shape. This facts become accrued from the business enterprise's
annual document and the internet. The secondary information resources are: Trade publications
and periodicals books and newspapers.

Tools: Pie charts, percent analysis, questionnaire surveys, SPSS Excel, and

6. LIMTATIONS OF THE STUDY

 The most significant roadblock to growth in private debt was the lack of access and
ability to assess creditworthiness,
 which therefore restricted banks and Non-Banking Financial Corporations (NBFCs) from
growing their credit book to households
7. CHAPTERIZATION
• Abstract

• Chapter I - Introduction

• Chapter II – Review of Literature

• Chapter III – Research Methodology

• Chapter IV – Theoretical Framework

• Chapter V – Company Profile

• Chapter VI – Research Data Analysis and Interpretation

• Chapter VII – Findings and Conclusions

• Chapter VIII - Suggestions and Recommendations

• Bibliography.