Trade Analytics
Banking
Total credit extended in India reached US$ 1.3 trillion as of Q3 FY19.

Indian Banking Industry Analysis

Latest update: January, 2020

Growth

 

Last Updated: January, 2020

The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44 foreign banks, 44 regional rural banks, 1,542 urban cooperative banks and 94,384 rural cooperative banks, in addition to cooperative credit institutions. As on March 31, 2019, the total number of ATMs in India increased to 2,21,703 and is further expected to increase to 407,000 by 2021. As of 2017, 80 per cent of the adult population has bank accounts. As on March 31, 2019 the number of debit and credit cards issued were 925 million and 47 million, respectively.

Assets of public sector banks stood at Rs 72.59 lakh crore (US$ 1,038.76 billion ) in FY19. As per Union Budget 2019-2020, Provision coverage ratio of banks reached highest in 7 years. As per RBI, as of January 10, 2020, India recorded foreign exchange reserves of approximately US$ 461 .21 billion.

Deposits as of Jan 2020, stood at Rs 133.24 lakh crore (US$ 1,906.45 billion) and credit to non-food industries reached Rs 100.23 lakh crore (US$ 1.43 trillion) as on January 31,2020.

Indian banks are increasingly focusing on adopting integrated approach to risk management. The NPAs (Non-Performing Assets) of commercial banks has recorded a recovery of Rs 400,000 crore (US$ 57.23 billion) in FY2019, which is highest in last four years. 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.

As per Union Budget 2019-20, investment-driven growth requires access to low cost capital which an requires investments of Rs 20 lakh crore (US$ 286.16 billion) every year.

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. In June 2019, RBI sets average base rate of 9.18 per cent for non-banking financial companies and micro finance institutions borrowers for quarter beginning of July.

The total equity funding of microfinance sector grew at the rate of 42 year-on-year to Rs 14,206 crore (US$ 2.03 billion) in 2018 -19.

Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) stood at Rs 1.06 lakh crore (US$ 15.17 billion) with 37.34 crore accounts  registered. In May 2018, the Government of India provided Rs 6 lakh crore (US$ 93.1 billion) loans to 120 million beneficiaries under Mudra scheme. As of November 2019, the total number of subscribers was 19 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. As of September 2018, Department of Financial Services (DFS), Ministry of Finance and National Informatics Centre (NIC) launched Jan Dhan Darshak as a part of financial inclusion initiative. It is a mobile app to help people locate financial services in India.

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. Transactions through Unified Payments Interface (UPI) stood at 1.2 billion in November 2019 worth Rs 1.89 lakh crore (US$ 27.08 billion).

As per Union Budget 2019-20, the government has proposed fully automated GST refund module and an electronic invoice system that will eliminate the need for a separate e-way bill.

Indian Banking Industry Report (January, 2020)
Download PDF Download PDF  (Size: 622.53 KB )

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

Agri Export Policy - Towards smoother trade, wider global presence

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg SUSTAINABLE AGRICULTURE - TURNING TO ORGANIC AND NATURAL FARMING
IBEF, Knowledge Centre

Agriculture and its allied sector are crucial for the development of a country, especially for India where it is the largest source of livelihood. The sector plays a majo...

author_logo-ibef1.jpg Digital India: Power To Empower
IBEF, Knowledge Centre

The global economy is presently going through the fourth Industrial Revolution, also known as the Digital Revolution. This revolution is changing not only the way we inte...

author_logo-ibef1.jpg India's leapfrog strategy from BS-IV to BS-VI
IBEF, Knowledge Centre

The Ministry of Road Transport and Highways (MoRTH) issued a draft notification of Bharat Stage (BS) VI emission standards in 2016 for all major on-road vehicle categorie...

author_logo-ibef1.jpg Television Industry in India
IBEF, Knowledge Centre

Television was first introduced in India on September 15, 1959 with the help of UNESCO. Since then the television industry has witnessed transformation with advancement i...

author_logo-ibef1.jpg Indian Tourism Industry: An Insight
IBEF, Knowledge Centre

During the celebration of 73rd Independence Day, Prime Minister Mr Narendra Modi addressed the nation from the Red Fort and underlined that India ‘has mu...

author_alok_kirloskar1.jpg From smart water pumps to drones: Technology is changing Indian farms!
Alok Kirloskar, Executive Director, Kirloskar Brothers Limited

Disruptive technologies and innovations in application engineering are fast changing farming practices in India. From preparing the land to sowing, to reaping and mentori...

ideas More

Ideas

Zomato: Top Of The Food Chain
Zomato, an Indian start-up is in the business of online food ordering. It initially launched Foodiebay.com in Gurugram in 2008, a website that scanned menus and provided ratings and recommendations on....

JOIN IBEF.org

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

Error

Already a member?
Login / Retrieve Password