Trade Analytics
Banking
Total credit extended in India reached US$ 1.3 trillion in Oct-Dec 2017.

Indian Banking Industry Analysis

Latest update: July, 2018

  • Credit off-take has been surging ahead over the past decade, aided by strong economic growth, rising disposable incomes, increasing consumerism & easier access to credit
  • As of Q3 FY18, total credit extended surged to US$ 1,288.1 billion.
  • Credit to non-food industries increased by 9.53 per cent reaching US$ 1,120.42 billion in January 2018 from US$ 1,022.98 billion during the previous financial year.
  • Demand has grown for both corporate & retail loans; particularly the services, real estate, consumer durables & agriculture allied sectors have led the growth in credit.
  • The digital payments revolution will trigger massive changes in the way credit is disbursed in India.^
Growth

Notes: CAGR - Compounded Annual Growth Rate, * - FY18 data upto December 2017, ^ - according to Mr Amitabh Kant, CEO of NITI Aayog
Source: Reserve Bank of India (RBI), Aranca Research;

Last Updated: July, 2018

The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49 foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks, in addition to cooperative credit institutions.

As of Q4 FY17-18, total credit extended by commercial banks surged to Rs 86,825,727 million (US$ 1,347 billion) and deposits grew to Rs 114,792,883 million (US$ 1,781 billion). Assets of public sector banks stood at US$ 1,518 billion in FY17.

Indian banks are increasingly focusing on adopting integrated approach to risk management. Banks have already embraced the international banking supervision accord of Basel II, and majority of the banks already meet capital requirements of Basel III, which has a deadline of March 31, 2019.

Reserve Bank of India (RBI) has decided to set up Public Credit Registry (PCR) an extensive database of credit information which is accessible to all stakeholders. The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been passed and is expected to strengthen the banking sector.

Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) are growing Rs 78,952.09 crore (US$ 11.78 billion) were deposited and 31.95 million accounts were opened in India^. In May 2018, the Government of India provided Rs 6 trillion (US$ 93.1 billion) loans to 120 million beneficiaries under Mudra scheme. In May 2018, the total number of subscribers were 11 million, under Atal Pension Yojna.

Rising incomes are expected to enhance the need for banking services in rural areas and therefore drive the growth of the sector.

The digital payments revolution will trigger massive changes in the way credit is disbursed in India. Debit cards have radically replaced credit cards as the preferred payment mode in India, after demonetisation. Debit cards garnered a share of 86.79 per cent of the total card spending.*

Notes: ^ - as of July 4, 2018, * - as of May 2018

Indian Banking Industry Report (July, 2018)

Download PDF   Download  (Size: 1.2 MB )

Indian Banking Industry Report (June, 2018)

Download PDF   Download  (Size: 1.19 MB )

Click to access the Banking Industry Archived Report

Banking India

Growth in money supply over past few years (US$ billion)
Gross NPAs to Gross Advances in India

 

Posters

Brand India Pharma

BANKING INDIA

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India Now Magazine


The Luxe Edge - Reshaping India's Lifestyle Choices

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_Mr_Vinay_Kalantri_Founder_MD_The_Mobil_Wallet-21.jpg "India has always had a business community not averse to risk-taking"
Vinay Kalantri, Founder and Managing Director, The Mobile Wallet

Interview with Vinay Kalantri, Founder and Managing Director, The Mobile Wallet

Founder and Managing Director of The Mobile Wallet, Vinay Kal...

author_logo-ibef1.jpg Indian fintech start-ups: At the right place, at the right time!
IBEF, Knowledge Centre

Fintech, i.e. the technology that enables banking and financial services, is a very fast growing space in India, especially for the start-up domain. Fintechs are offering...

author_logo-ibef1.jpg India: The land of technology-led start-ups!
IBEF, Knowledge Centre

The Indian technology start-up domain is proudly placed at the fourth largest position in the world. The industry was sized at US$ 35 billion in FY18. Last decade saw eme...

author_logo-ibef1.jpg India: Weaving million success stories!
IBEF, Knowledge Centre

Textiles have been one of the oldest and largest industries in India historically, second only to agriculture, and it generates jobs for millions of people. The current e...

author_Varun-Aggarwal-headshot1.jpg Leading science and technology: The opportunity and the challenges for India
Varun Aggarwal, co-founder and Head of Research, Aspiring Minds | Author of 'India Next'

Today is the most opportune time for India to revolutionise its science and technology ecosystem. The size of our economy provides the capital, manpower and market to inv...

author_Erich-Nesselhauf-MD-CEO-DICV1.JPG "We always firmly believed in the Make in India initiative. We're probably one of the most successful poster examples..."
Erich Nesselhauf, MD & CEO - Daimler India Commercial Vehicles

Daimler India Commercial Vehicle has been able to create a space for its offerings in the already crowded domestic commercial vehicle market. Erich Nesselhauf, MD & C...

ideas More

Ideas

Netmed.com: Just a Click Away
Netmed.com (India ki pharmacy), is an online portal for medicines where one can upload the prescription, order medicines, and get them delivered at the doorstep. The company came into being in 2015 and since then it is trying to make all the modern medicines available and affordable for all with a hybrid inventory/marketplace model...

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password