India Banking Industry Growth, Share, Size & Analysis 2015- 2022

Summary

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).

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Significant Mergers and Acquisitions in the Industry

In recent years, a variety of private and public sector banks within the Indian banking industry had gone transformational phase of mergers and acquisitions to combat the pertaining industry competition. The capital base of the anchor bank grows as a result of the merger. Furthermore, it provides the bank with access to a bigger money supply, enabling it to decide on stringent lending criteria. Consequently, the government wouldn't need to invest as much money in recapitalization, which would reduce the cost. In terms of operations and efficiency, mergers and acquisitions also assist banks in scaling up. They avoid the need to create such capabilities from scratch by filling in technological and financial gaps. It would also optimize costs between branches.

For instance, HDFC Bank announced a transformational merger with HDFC Limited in April 2022. Similarly, Kotak Mahindra Bank announced in November 2021 that it had successfully acquired a 9.98% stake in KFin Technologies for Rs. 310 crores (USD 41.62 million) for its digital banking. In August 2019, PM Narendra Modi announced a massive merger of India's 10 public sector undertaking (PSU) banks into anchor banks such as the merger of Oriental Bank of Commerce and United Bank of India (UBI) withPSU bank Punjab National Bank (PNB), and merger of ndian Bank with PSU bank Allahabad Bank. Union Bank of India (UBI) became the anchor bank for Corporation Bank and Andhra Bank even as Canara Bank became the anchor bank for the Syndicate Bank.

Expanding banking outreach aids Industry Growth

One of the main goals of the Indian state has been to expand banking outreach while also digitalizing. The Pradhan Mantri Jan Dhan Yojana, one of the largest national programs in recent years, increased the affordability and accessibility of many financial services for economically disadvantaged groups in society. The program makes it possible for people without savings accounts to open an account without having to have a certain minimum balance. For instance, on June 20, 2022, 45.60 crore bank accounts were opened as part of the government's major initiative for financial inclusion, the Pradhan Mantri Jan Dhan Yojana (PMJDY), and 1.68 trillion rupees (USD 21.56 billion) were deposited into Jan Dhan bank accounts. Additionally, the government and RBI have encouraged the banking industry to expand its network into the vast rural interior of the country.

Industry Segmentation

The India Banking industry is segmented based on the Total Number of Banks in India, by Total Deposits in India, by Total Credit/Lending in India, by Total Assets, by Total Foreign Currency Reserves in India, and by Total Number of ATMs in India into Bank Type. The market analysis also studies the Total interest income and other income segmentation to devise the Type of Banks.

Company Profiles

State Bank of India, HDFC Bank Limited, ICICI Bank Limited, Canara Bank, Punjab National Bank, Union Bank of India, Bank of Baroda, Axis Bank Limited, Kotak Mahindra Bank Limited, Bank of India, are among the major market players in India that lead the market growth of the India Banking Market.

Attribute	Details
Base Year	2022
Historic Data	2015 – 2021
Industry Overview	Rising FinTech Companies, Growing demand from Retail Loan Sector, and Government Flagship Programs
Report coverage	Growth factors, and trends
Segments Covered	Total Number of Banks in India Total Deposits in India Total Credit/Lending in India Total Assets Total Foreign Currency Reserves in India Total Number of ATMs in India Total interest income and other income
Regional Scope	North, West, South & East
Key Companies Profiled	State Bank of India, HDFC Bank Limited, ICICI Bank Limited, Canara Bank Ltd., Punjab National Bank, Union Bank of India, Bank of Baroda, Axis Bank Limited, Kotak Mahindra Bank Limited, Bank of India
Customization Scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

In this report, India Banking industry has been segmented into following categories, in addition to the industry trends which have also been detailed below:

India Banking industry, By Total Number of Banks in India, (Volume), 2015-2022:

By Bank Type

Total Number of Private Banks
Total Number of Public Banks
Total Number of Foreign Banks
Total Number of Regional Rural Banks
Total Number of Small Finance Banks

India Banking industry, By Total Deposits in India, (Value), 2015-2022:

By Deposit Type

Total Saving Deposits
Total Current Deposits
Total Term Deposits

By Bank Type

Total Deposits with Public Banks
Total Deposits with Private Banks
Total Deposits with Foreign Banks
Total Deposits with Regional Rural Banks
Total Deposits with Small Finance Banks

By Region

Total Deposits in Central Region
Total Deposits in Eastern Region
Total Deposits in North Eastern Region
Total Deposits in Northern Region
Total Deposits in Southern Region
Total Deposits in Western Region

By End Use Sector

Total Credit/Lending with Industry Sector
Total Credit/Lending with Services Sector
Total Credit/Lending with Agriculture Sector
Total Credit/Lending with Retail Sector

By Bank Type

Total Credit/Lending with Public Banks
Total Credit/Lending with Private Banks

By Region

Total Credit/Lending in Central Region
Total Credit/Lending in Eastern Region
Total Credit/Lending in North Eastern Region
Total Credit/Lending in Northern Region
Total Credit/Lending in Southern Region
Total Credit/Lending in Western Region

India Banking industry, By Total Assets, (Value), 2015-2022:

By Type of Banks

Total Assets with Public Sector Banks
Total Assets with Private Sector Banks
Total Assets with Foreign Banks
Total Assets with Small Finance Banks
Total Assets with Payments Banks

India Banking industry, By Total Foreign Currency Reserves in India, (Value), 2015-2022

By Type of Reserve

Total Reserve with Foreign Currency Assets
Total Reserve with Gold
Total Reserve with Special Drawing Rights
Total Reserve with Reserve Tranche Position in the International Monetary Fund (IMF)

India Banking industry, By Total Number of ATMs in India, (Volume), 2015-2022

By Bank Type

Total Number of Private Bank ATMs
Total Number of Public Bank ATMs
Total Number of Foreign Bank ATMs

India Banking industry, By Total Interest Income and Other Income, (Value), 2015-2022

By Type of Banks

Total interest income and other income with Public Sector Banks
Total interest income and other income with Private Sector Banks
Total interest income and other income with Foreign Banks
Total interest income and other income with Small Finance Banks
Total interest income and other income with Payments Banks

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India Banking industry.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

India Banking Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Industry Overview

1.2. Key Highlights of the Report

1.3. Industry Coverage

1.4. Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Assumptions and Limitations

3. Executive Summary

3.1. Industry Overview

3.2. Key Segments

4. Total Number of Banks in India, (Volume), 2015-2022

4.1. By Bank Type

4.1.1. Total Number of Private Banks

4.1.2. Total Number of Public Banks

4.1.3. Total Number of Foreign Banks

4.1.4. Total Number of Regional Rural Banks

4.1.5. Total Number of Small Finance Banks

5. Total Deposits in India, (Value), 2015-2022

5.1. By Deposit Type

5.1.1. Total Saving Deposits

5.1.2. Total Current Deposits

5.1.3. Total Term Deposits

5.2. By Bank Type

5.2.1. Total Deposits with Public Banks

5.2.2. Total Deposits with Private Banks

5.2.3. Total Deposits with Foreign Banks

5.2.4. Total Deposits with Regional Rural Banks

5.2.5. Total Deposits with Small Finance Banks

5.3. By Region

5.3.1. Total Deposits in Central Region

5.3.2. Total Deposits in Eastern Region

5.3.3. Total Deposits in North Eastern Region

5.3.4. Total Deposits in Northern Region

5.3.5. Total Deposits in Southern Region

5.3.6. Total Deposits in Western Region

6. Total Credit/Lending in India, (Value), 2015-2022

6.1. By End Use Sector

6.1.1. Total Credit/Lending with Industry Sector

6.1.2. Total Credit/Lending with Services Sector

6.1.3. Total Credit/Lending with Agriculture Sector

6.1.4. Total Credit/Lending with Retail Sector

6.2. By Bank Type

6.2.1. Total Credit/Lending with Public Banks

6.2.2. Total Credit/Lending with Private Banks

6.3. By Region

6.3.1. Total Credit/Lending in Central Region

6.3.2. Total Credit/Lending in Eastern Region

6.3.3. Total Credit/Lending in North Eastern Region

6.3.4. Total Credit/Lending in Northern Region

6.3.5. Total Credit/Lending in Southern Region

6.3.6. Total Credit/Lending in Western Region

7. Total Assets, (Value), 2015-2022

7.1. By Type of Banks

7.1.1. Total Assets with Public Sector Banks

7.1.2. Total Assets with Private Sector Banks

7.1.3. Total Assets with Foreign Banks

7.1.4. Total Assets with Small Finance Banks

7.1.5. Total Assets with Payments Banks

8. Total Foreign Currency Reserves in India, (Value), 2015-2022

8.1. By Type of Reserve

8.1.1. Total Reserve with Foreign Currency Assets

8.1.2. Total Reserve with Gold

8.1.3. Total Reserve with Special Drawing Rights

8.1.4. Total Reserve with Reserve Tranche Position in the International Monetary Fund (IMF)

9. Total Number of ATMs in India, (Volume), 2015-2022

9.1. By Bank Type

9.1.1. Total Number of Private Bank ATMs

9.1.2. Total Number of Public Bank ATMs

9.1.3. Total Number of Foreign Bank ATMs

10. Total interest income and other income, (Value), 2015-2022

10.1. By Type of Banks

10.1.1. Total interest income and other income with Public Sector Banks

10.1.2. Total interest income and other income with Private Sector Banks

10.1.3. Total interest income and other income with Foreign Banks

10.1.4. Total interest income and other income with Small Finance Banks

10.1.5. Total interest income and other income with Payments Banks

11. Market Dynamics

11.1. Drivers

11.1.1. Merger of Public Sector Banks

11.1.2. Flagship Programs by Government

11.1.3. Ease of Availing Loan

11.2. Challenges

11.2.1. Surging Non-Performing Assets (NPA’s)

11.2.2. Limited reach in Rural and Semi-urban areas

12. Impact of COVID-19 on India Banking Market

13. Market Trends & Developments

13.1. Rising Fintech Platforms

13.2. Increasing Numbers of Accounts Registration

13.3. Growing investments

13.4. Surging marketing tactics

13.5. Rising demand of Retail Loan Sector

14. SWOT Analysis

14.1. Strengths

14.2. Weaknesses

14.3. Opportunities

14.4. Threats

15. Policy & Regulatory Landscape

16. India Economic Profile

17. Competitive Landscape

17.1. Company Profiles

17.1.1. State Bank of India

17.1.1.1. Company Details

17.1.1.2. Product & Services

17.1.1.3. Financials (As Reported)

17.1.1.4. Digital Banking Services

17.1.1.5. Key market Focus & Geographical Presence

17.1.1.6. Recent Developments

17.1.1.7. Key Management Personnel

17.1.2. HDFC Bank Limited

17.1.2.1. Company Details

17.1.2.2. Product & Services

17.1.2.3. Financials (As Reported)

17.1.2.4. Digital Banking Services

17.1.2.5. Key market Focus & Geographical Presence

17.1.2.6. Recent Developments

17.1.2.7. Key Management Personnel

17.1.3. ICICI Bank Limited

17.1.3.1. Company Details

17.1.3.2. Product & Services

17.1.3.3. Financials (As Reported)

17.1.3.4. Digital Banking Services

17.1.3.5. Key market Focus & Geographical Presence

17.1.3.6. Recent Developments

17.1.3.7. Key Management Personnel

17.1.4. Canara Bank Ltd.

17.1.4.1. Company Details

17.1.4.2. Product & Services

17.1.4.3. Financials (As Reported)

17.1.4.4. Digital Banking Services

17.1.4.5. Key market Focus & Geographical Presence

17.1.4.6. Recent Developments

17.1.4.7. Key Management Personnel

17.1.5. Punjab National Bank

17.1.5.1. Company Details

17.1.5.2. Product & Services

17.1.5.3. Financials (As Reported)

17.1.5.4. Digital Banking Services

17.1.5.5. Key market Focus & Geographical Presence

17.1.5.6. Recent Developments

17.1.5.7. Key Management Personnel

17.1.6. Union Bank of India

17.1.6.1. Company Details

17.1.6.2. Product & Services

17.1.6.3. Financials (As Reported)

17.1.6.4. Digital Banking Services

17.1.6.5. Key market Focus & Geographical Presence

17.1.6.6. Recent Developments

17.1.6.7. Key Management Personnel

17.1.7. Bank of Baroda

17.1.7.1. Company Details

17.1.7.2. Product & Services

17.1.7.3. Financials (As Reported)

17.1.7.4. Digital Banking Services

17.1.7.5. Key market Focus & Geographical Presence

17.1.7.6. Recent Developments

17.1.7.7. Key Management Personnel

17.1.8. Axis Bank Limited

17.1.8.1. Company Details

17.1.8.2. Product & Services

17.1.8.3. Financials (As Reported)

17.1.8.4. Digital Banking Services

17.1.8.5. Key market Focus & Geographical Presence

17.1.8.6. Recent Developments

17.1.8.7. Key Management Personnel

17.1.9. Kotak Mahindra Bank Limited

17.1.9.1. Company Details

17.1.9.2. Product & Services

17.1.9.3. Financials (As Reported)

17.1.9.4. Digital Banking Services

17.1.9.5. Key market Focus & Geographical Presence

17.1.9.6. Recent Developments

17.1.9.7. Key Management Personnel

17.1.10. Bank of India

17.1.10.1. Company Details

17.1.10.2. Product & Services

17.1.10.3. Financials (As Reported)

17.1.10.4. Digital Banking Services

17.1.10.5. Key market Focus & Geographical Presence

17.1.10.6. Recent Developments

17.1.10.7. Key Management Personnel

18. Strategic Recommendations/Action Plan

18.1. Key Focus Areas

18.1.1. Target Segment

18.1.2. Target Services

19. About Us & Disclaimer

Figures and Tables

Frequently asked questions

How is the banking system in India?

The Reserve Bank of India (RBI), commercial banks, cooperative banks, and development banks make up India's banking system (development finance institutions). The foundation of India's financial sector is made up of these institutions, which serve as a gathering place for investors and savers.

Is banking sector growing in India?

Asset quality also significantly increased due to a year-over-year decline in both gross and net non-performing assets. Most private banks experienced double-digit portfolio growth, broadly in line with the growth in credit. In light of this, the Indian banking industry is now perceived as being optimistic.

What are the problems in banking sector?

The banking sector is going through a significant transformation that is being fueled by new competition from FinTechs, evolving business models, increasing pressure from regulations and compliance requirements, and disruptive technologies.

What are the latest trends in banking?

Four emerging banking trends in 2023 are the rising support for digital payments, artificial intelligence, better customer support, and improved user interface.

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