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Market Size
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).
Download Free Sample Report 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.
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Attribute |
Details |
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Base Year |
2022 |
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Historic Data |
2015 – 2021 |
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Industry Overview |
Rising FinTech Companies, Growing demand from Retail Loan Sector, and Government Flagship Programs |
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Report coverage |
Growth factors, and trends |
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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 |
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Regional Scope |
North, West, South & East |
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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 |
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Customization Scope |
10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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