Advantage India
Robust
Demand
* Indian Fintech industry currently is Rs. 9,61,593 crore (US$ 111 billion) and estimated to be at Rs. 36,47,123 crore (US$ 421 billion) by 2029. India has the third largest FinTech ecosystem globally.
* BCG predicts that the proportion of digital payments will grow to 65% by 2026.
* That demand seems particularly strong when it comes to the critical need of protecting consumer data, where incumbent banks have a trust advantage. Some super apps may also turn to banks for access to banking licenses and to meet other regulatory requirements.
Innovation in
Services
* In the recent period, technological innovations have led to marked improvements in efficiency, productivity, quality, inclusion and competitiveness in the extension of financial services, especially in the area of digital lending.
* Digitalization of Agri-finance was conceptualized jointly by the Reserve Bank and the Reserve Bank Innovation Hub (RBIH). This will enable delivery of Kisan Credit Card (KCC) loans in a fully digital and hassle-free manner.
* In Union Budget 2023, the KYC process will be streamlined by using a 'risk-based' strategy rather than a 'one size fits all' approach.
* In September 2023, Hitachi Payment Services launched India's first-ever UPI-ATM with NPCI.
Business
Fundamentals
* The Indian banking industry has been on an upward trajectory aided by strong economic growth, rising disposable incomes, increasing consumerism and easier access to credit.
* Digital modes of payments have grown by leaps and bounds over the last few years.
* As on July 2024, there were 602 banks actively using UPI. The total number of digital transactions during this period amounted to 15.08 billion, with a total value of Rs. 2,10,000 crore (US$ 25.27 billion).
Policy
Support
* The RBI has launched a pilot to digitalize KCC lending in a bid for efficiency, higher cost savings, and reduction of TAT. This is expected to transform the flow of credit in the rural economy.
* In November 2022, RBI launched a pilot project on Central Bank Digital Currency (CBDC).
* In Union Budget 2023, a national financial information registry would be constructed to serve as the central repository for financial and ancillary data.
* In March 2023, India Post Payments Bank (IPPB), in collaboration with Airtel, announced the launch of WhatsApp Banking Services for IPPB customers in Delhi.
HDFC Bank
HDFC Bank Limited is a holding company. The bank offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. It also offers financial services. The bank's segments include treasury, retail banking, wholesale banking and other banking business. The treasury segment primarily consists of net interest earnings from the Bank's investment portfolio, money market borrowing and lending, gains, or losses on investment operations and on account of trading in foreign exchange and derivative contracts. The retail banking segment serves retail customers through a branch network and other delivery channels, as well as through alternative delivery channels. The bank provides its corporate and institutional clients a range of commercial and transactional banking products. The other banking business segment include income from para banking activities.
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ICICI Bank
ICICI Bank Limited is a banking sector company. The bank is engaged in providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. The bank's business segments are retail banking, wholesale banking, treasury, other banking, life insurance, general insurance, and others. Its international banking is focused on providing solutions for international banking requirements of its Indian corporate clients and leveraging economic corridors between India and the rest of the world. The bank caters to the financial need of women entrepreneurs through its Self-Help Group (SHG) programme as part of its microfinance initiatives.
Read MoreState Bank of India (SBI)
State Bank of India provides a range of products and services to individuals, commercial enterprises, large corporates, public bodies and institutional customers. It offers a range of segments like treasury, which includes the entire investment portfolio and trading in foreign exchange contracts and derivative contracts; corporate/wholesale banking, which comprises the lending activities of corporate accounts group, mid corporate accounts group and stressed assets management group; retail banking, which comprises branches in National Banking Group and primarily includes personal banking activities like lending activities to corporate customers having banking relations with branches in the National Banking Group; and other banking business, which includes operations of all non-banking subsidiaries/joint ventures other than SBI Life Insurance Co. Ltd. and SBI General Insurance Co. Ltd.
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