Does India really need a banking giant like JP Morgan, or should it focus on strengthening homegrown financial institutions?
That was one of the key questions posed to AU Small Finance Bank Managing Director & CEO Sanjay Agarwal during a conversation with Tamana Inamdar, Managing Editor, NDTV Profit, at the NDTV Profit Business Leadership Awards.
"India needs more HDFCs, and we aspire to be like that. It is difficult to compare a global player like JPMorgan with an Indian bank because they operate on entirely different platforms. It's like they are playing football and we are playing cricket—how can you judge the game when the scores aren't comparable?" he said, adding that as an entrepreneur, one must respect the Indian context first: the country's unique challenges, and its management style.
Agarwal argued that India's banking sector has evolved into a resilient and well-capitalised system capable of supporting the country's economic ambitions without relying excessively on foreign financial institutions.
"The Indian banking system today is well capitalised, credit growth remains healthy and banks are adequately supporting the needs of industry," Agarwal said during the discussion.
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He attributed this strength to India's emphasis on macroeconomic stability, fiscal discipline and sustained investments in infrastructure, calling them the foundation of the country's long-term growth story.
"Stability is not the absence of shocks; it is the ability to absorb them," he said, adding that the government's commitment to fiscal prudence has continued despite global uncertainties, while capital expenditure has remained a priority.
Agarwal also highlighted India's focus on building long-term economic capacity through investments in skills, employment generation and digital infrastructure.
He pointed to initiatives such as the PM Kaushal Vikas Yojana, the PM Internship Programme, AI labs in Tier-II and Tier-III cities under the IndiaAI Mission, and the PM Vikasit Bharat Rozgar Yojana as examples of policies aimed at creating a future-ready workforce.
According to him, India's growth story is increasingly being driven by its young population, with policy interventions designed to improve employability, expand opportunities and strengthen entrepreneurship.
The conversation comes at a time when global financial markets continue to grapple with geopolitical tensions, inflationary pressures and slowing growth, prompting renewed debate over the role of domestic financial institutions in supporting economic resilience.
While acknowledging external challenges, Agarwal maintained that India's banking system is well-positioned to navigate uncertainty, underscoring the importance of building globally competitive Indian institutions alongside maintaining macroeconomic stability.
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