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The forecast period holds promising growth prospects for India's banking sector, driven by several factors including the country's burgeoning population, the seamless experience offered by digital banking, heightened awareness of structured loans, and subsidized interest rates.Speak directly to the analyst to clarify any post sales queries you may have.
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Banking Landscape and Regulatory Framework
The Reserve Bank of India (RBI) plays a pivotal role in overseeing India's banking ecosystem, which encompasses both cooperative and commercial banks. Commercial banks are further categorized into Scheduled Commercial Banks (SCBs) and Non-Scheduled Commercial Banks. Cooperative banks encompass urban and rural entities. SCBs encompass private, public, foreign banks, as well as Regional Rural Banks (RRBs).Key Role of Public Sector Banks (PSBs)
India's Public Sector Banks (PSBs) constitute a significant segment of government-owned financial institutions. These banks, majority-owned by the Government of India's Ministry of Finance or state finance ministries, wield considerable influence in lending and deposit activities. While PSBs have traditionally dominated, the rise of private sector and foreign banks has brought increased competition to the market.
Distribution of Deposits and Bank Assets
Public sector banks (PSBs) retain around 70% of total deposits, with private sector banks accounting for the bulk of the remaining share. The Indian banking landscape includes a diverse array of institutions, such as public sector banks, private sector banks, foreign banks, regional rural banks, urban cooperative banks, and rural cooperative banks.Rising Assets and Regulatory Initiatives
Banking assets across all sectors have demonstrated growth in the period from 2020 to 2022. By March 2022, the combined assets of the entire banking industry, inclusive of public and private sector banks, foreign banks, small finance banks, and payment banks, reached USD 29.08 billion. Notably, public and private sector banking assets stood at USD 17.05 billion and USD 9.89 billion, respectively, in 2022. The establishment of the Public Credit Registry (PCR) by the RBI, a comprehensive credit database accessible to all stakeholders, is a significant regulatory initiative expected to strengthen the industry. Additionally, the passage of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill is set to further fortify the banking sector.Financial Inclusion and Technological Advancements
The 'Pradhan Mantri Jan Dhan Yojana (PMJDY),' a major government initiative for financial inclusion, has led to the opening of 45.60 crore bank accounts by June 1, 2022. The cumulative deposits in Jan Dhan bank accounts totaled Rs. 1.68 trillion (USD 21.56 billion). With rising income levels, the demand for banking services in rural areas is poised to increase, fueling sectoral expansion. India is also a global leader in Android-based mobile lending apps, boasting 82% of such apps worldwide, with 887 active lending apps currently in operation.Mergers and Acquisitions Shaping Industry Dynamics
Mergers and acquisitions have reshaped the Indian banking landscape in recent years, as private and public sector banks have undergone transformative phases to address industry competition. Such activities enhance the capital base of the anchor bank, augmenting its access to funds and enabling more stringent lending criteria. Efficiency and operational scaling are additional advantages, as technological and financial gaps are filled through such integration, minimizing costs and optimizing branch operations.Prominent Industry Examples
Notable instances include HDFC Bank's merger with HDFC Limited in April 2022 and Kotak Mahindra Bank's acquisition of a 9.98% stake in KFin Technologies for digital banking in November 2021. Government initiatives also play a role, as exemplified by the consolidation 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 with Punjab National Bank (PNB) and the amalgamation of Indian Bank with Allahabad Bank.Expanding Outreach for Industry Growth
A key priority for India's government is expanding banking access while embracing digitalization. The Pradhan Mantri Jan Dhan Yojana program, a cornerstone initiative, has facilitated financial services accessibility for disadvantaged groups. By allowing people without savings accounts to open accounts without minimum balance constraints, the program has contributed to financial inclusion. The push for rural banking expansion continues to be championed by the government and the RBI.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.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
India Banking industry, By Total Deposits in India, (Value), 2015-2022:
- By Deposit Type
- By Bank Type
- By Region
- By End Use Sector
- By Bank Type
- By Region
India Banking industry, By Total Assets, (Value), 2015-2022:
- By Type of Banks
India Banking industry, By Total Foreign Currency Reserves in India, (Value), 2015-2022
- By Type of Reserve
India Banking industry, By Total Number of ATMs in India, (Volume), 2015-2022
- By Bank Type
India Banking industry, By Total Interest Income and Other Income, (Value), 2015-2022
- By Type of Banks
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in India Banking industry.Available Customizations
The following customization options are available for the report:- Detailed analysis and profiling of additional market players (up to five).
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Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Total Number of Banks in India, (Volume), 2015-2022
5. Total Deposits in India, (Value), 2015-2022
6. Total Credit/Lending in India, (Value), 2015-2022
7. Total Assets, (Value), 2015-2022
8. Total Foreign Currency Reserves in India, (Value), 2015-2022
9. Total Number of ATMs in India, (Volume), 2015-2022
10. Total interest income and other income, (Value), 2015-2022
11. Market Dynamics
13. Market Trends & Developments
14. SWOT Analysis
17. Competitive Landscape
18. Strategic Recommendations/Action Plan
19. About the Analyst & Disclaimer
Companies Mentioned
- 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
