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Bank accounts opened under the Government’s flagship financial inclusion drive Pradhan Mantri Jan Dhan Yojana (PMJDY) reached 40.05 crore and deposits in Jan Dhan bank accounts stood at more than Rs. 1.30 lakh crore (US$ 18.44 billion).

Indian Banking Industry Analysis

    Last updated on Oct, 11 2021

The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44 foreign banks, 43 regional rural banks, 1,484 urban cooperative banks and 96,000 rural cooperative banks in addition to cooperative credit institutions. As of May 2021, the total number of ATMs in India increased to 214,654.

According to the RBI, bank credit stood at 108.79 trillion (US$ 1.46 trillion) and bank deposits stood at Rs. 155.14 trillion (US$ 2.08 trillion), as of July 16, 2021. Credit to non-food industries stood at Rs. 107.93 trillion (US$ 1.45 trillion), as of July 16, 2021.

Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20.

Total assets across the banking sector (including public, private sector and foreign banks) increased to US$ 2.52 trillion in FY20.

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 FY19, which is highest in the last four years.

RBI has decided to set up Public Credit Registry (PCR), an extensive database of credit information, accessible to all stakeholders. The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been passed and is expected to strengthen the banking sector. Total equity funding of microfinance sector grew 42% y-o-y to Rs. 14,206 crore (US$ 2.03 billion) in 2018-19.

As of July 21, 2021, the number of bank accounts—opened under the government’s flagship financial inclusion drive ‘Pradhan Mantri Jan Dhan Yojana (PMJDY)’— reached 42.76 crore and deposits in Jan Dhan bank accounts totalled >Rs. 1.43 lakh crore (US$ 19.31 billion).

Rising income is expected to enhance the need for banking services in rural areas, and therefore, drive the growth of the sector.

India is the world's largest market for Android-based mobile lending apps, accounting for ~82% of all online lenders worldwide. India currently has 887 active lending apps.

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. In July 2021, Unified Payments Interface (UPI) recorded 3.25 billion transactions worth Rs. 6.06 lakh crore (US$ 81.48 billion).

Indian Banking Industry Report (July, 2021)
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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

 

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