Report Description

India's banking industry is anticipated to project robust growth in the forecast period on account of the surging population base of India, digital banking experience, rising awareness for systematic loans and subsidized interest rates.

The RBI is in charge of India's banking system, which consists of cooperative and commercial banks. Scheduled Commercial Banks (SCBs) and Non-Scheduled Commercial Banks are both classified as commercial banks. While cooperative banks include both urban and rural lenders. SCBs are further divided into private, public, and foreign banks as well as Regional Rural Banks (RRBs).

In India, Public Sector Banks (PSBs) is a significant category of government-owned banks. The Ministry of Finance of the Government of India or state ministries of finance of various state governments hold a majority stake (> 50%). In India, public sector banks predominate in loan issuance and deposit collection, though competition has grown significantly over time as the private sector and foreign banks have emerged.

The majority of the remaining deposits were held by private sector banks, with public sector banks (PSBs) accounting for roughly 70% of the total. Furthermore, the cooperative credit institutions of the Indian banking system include 12 public sector banks, 21 private sector banks, 44 foreign banks, 43 regional rural banks, 1,484 urban cooperative banks, and 96,000 rural cooperative banks.

Bank assets increased in all sectors in 2020–2022. In March 2022, the total assets of the banking industry (including public and private sector banks, foreign banks, small finance banks, and payment banks) rose to USD29.08 billion. The combined assets of the public and private banking sectors were respectively USD17.05 billion and USD9.89 billion in 2022. The Public Credit Registry (PCR), a sizable credit database open to all stakeholders, has been established by RBI. It is anticipated that the passing of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill will strengthen the banking industry.

The number of bank accounts opened as of June 1, 2022, under the government's major initiative for financial inclusion, "Pradhan Mantri Jan Dhan Yojana (PMJDY)" reached 45.60 crores, with deposits totaling Rs. 1.68 trillion (USD21.56 billion) in the Jan Dhan bank accountsl. Rising income is anticipated to increase the demand for banking services in rural areas and, as a result, fuel the sector's expansion. With 82% of all online lenders worldwide, India has the largest market for Android-based mobile lending apps. There are currently 887 active lending apps in India. The way credit is distributed in India will undergo significant change as a result of the digital payments revolution. After demonetization, debit cards have largely taken the place of credit cards as the preferred method of payment in India. Unified Payments Interface (UPI) data shows that there were 5.95 billion transactions in May 2022 totaling Rs.10.41 trillion (USD 133.46 billion).