Breaking the Glassing Ceiling: The Case for Women Leaders in Indian Banking

Anu Aggarwal is responsible for P&L across ECM, M&A, Lending, Transaction Banking, Foreign Exchange, and DCM on a PAN India basis at Kotak Mahindra Bank. A member of the leadership team, she helped build the Corporate Banking franchise. Anu previously worked with Citibank NA and is a director on multiple boards. She holds an MBA from Jamnalal Bajaj Institute.

Women (could also) run the world.

In the bustling financial hubs of India’s metros, a quiet revolution is underway — confirming this truth. Women are increasingly stepping into leadership roles in India’s banking sector, bringing with them fresh perspectives and a unique set of skills.

A study by the CFA Institute and CFA Society India stamps some numbers on these notions. In India’s financial service companies, a little over 21% of employees and 15% of KMPs are women.

Yet, despite significant strides forward, the journey towards true gender parity in financial leadership remains a work in progress. And the room for improvement in gender diversity is particularly generous at the top echelons of the industry.

The good news: A rising tide lifts all boats

This is just as true for gender parity as it is for the economy. Research continuously reminds us that with women also in charge, companies can thrive and grow across all levels.

Companies with gender-diverse leadership teams outperform their less diverse counterparts. McKinsey found that gender diversity was directly tied to better financial performance — and businesses that offered more seats for women at the executive table were 25% more likely to record better top-line figures.

However, the path to the top for women in Indian banking is not without its challenges. The same study by the CFA Institute found that women in finance progressed slower in their careers than women in other sectors.

Then, we have the elephant in the room vying for attention: the gender pay gap. At first glance, things look quite acceptable because women make 97% of what men earn overall. But something bizarre happens at the top. When women make it to the executive suite, the rose-tinted glasses come off and their earnings nosedive to just 52% of their male counterparts’. It’s no wonder that many women think twice about gunning for the corner office. Who wants to climb the corporate ladder only to find half their paycheck missing when they get to the top?

However, you may want to play the devil’s advocate and ask the loaded question: Why do women deserve an equal seat at the table? Here’s why.

Women leaders bring two aces to the game: Emotional intelligence + empathy

Women can crunch the numbers, sure. But they can also read the room, connect with people and lead with empathy. This is not a recent development, either. A nearly decade-old study by Hay Group found that women had the lead in 11 out of 12 traits of emotional intelligence — including flexibility, empathy, teamwork and conflict management. In the high-stakes world of banking, these soft skills are power moves.

Women in leadership are not just good for morale, they are great for business too. Gallup reports that 72% of employees with women as bosses felt valued at work and 67% of them hit the elusive jackpot of job satisfaction (as opposed to 61% of employees with men as bosses, if we’re keeping score.

We also need to look beyond the numbers and view the market the way our customers see it. With women holding the purse strings for a significant portion of consumer spending, having other women in decision-making roles can be a winning move.

The catch? It takes two to tango (and level the playing field)

Paving the road for women in leadership is not a burden to be borne by one gender alone. It’s a shared responsibility. And the role of male allies in this journey cannot be overstated. Men in leadership positions can be on the right side of history by joining the cause for gender parity and actively advocating for equitable policies and practices.

By normalising women in positions of power and influence, we can rewrite the story for the next generation and create role models they can look up to. The road towards this equitable future may be challenging, but the rewards it holds are immeasurable — for businesses, for women, and for society as a whole.

The future I envision is best encapsulated in the words of Sheryl Sandberg: “In the future, there will be no female leaders. There will just be leaders.” For India’s banking sector, that future cannot come soon enough.