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Retail Banking Industry in India 2019

  • Report

  • 90 Pages
  • November 2019
  • Region: India
  • Netscribes (India) Pvt Ltd
  • ID: 5013100
The retail banking sector, currently comprises a network of ~96,068 branches of public sector, private sector, foreign, regional, rural, and cooperative banks (urban and rural). During the
FY 2014-FY 2019 period, deposit at SCBs expanded at a compound annual growth rate (CAGR) of ~10.39% to reach INR 1,30,430.12 Bn in FY 2019 from its FY 2014 value of INR 79,556.90 Bn.
Various government initiatives like increasing the number of banks’ public service units in rural areas, the Pradhan Mantri Jan Dhan Yojana program, free credit and debit cards with low transaction limits and promotion of technology-based banking systems are driving the growth of the retail banking sector of India.
Major players operating in the Indian retail banking industry include Yes Bank Limited, Axis Bank Limited, Bandhan Bank Limited, State Bank of India Limited and HDFC Bank Limited.

Market Segment Insights
As of FY 2018, in terms of deposit, public sector banks held the highest market share (~70.06%), followed by private sector banks. In FY 2018, SCBs opened around 1,594 new branches in tier I cities across India, which accounts for ~40.37% of the overall new branches opened during the year. During the same period, public sector banks had around 82,730 on-site ATMs and about 63,234 off-site ATMs across India. Among these, most public sector bank ATMs are in the semi-urban regions.

Key growth drivers of the market
In order to increase the penetration of services across India, SCBs have introduced facilities like opening a zero-balance savings account for the low-income population group in rural areas. Government-led, bank-based pension and insurance schemes like Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana have also propelled the growth of the retail banking industry in India.

Owing such customer-centric facilities, the penetration level of the banking sector in India had reached ~80% in FY 2018. The introduction of internet-based banking facilities has made transactions easier, thereby increasing the account-to-account transaction volume across the country.

Key deterrents to the growth of the market
Apart from banking, the popularity of internet-based banking has made it easy for hackers to engage in fraudulent activities. Crimes related to credit card fraud, spamming, spoofing, e-money laundering, ATM fraud, phishing, identity theft and credit through unauthorized cheque increased in India in FY 2019, as compared to that of FY 2018. This, in turn, has led to customers’ dissatisfaction and loss of trust towards web-based banking.

Companies covered
  • Allahabad Bank Limited
  • Axis Bank Limited
  • Bandhan Bank Limited
  • Bank of Baroda Limited
  • HDFC Bank Limited
  • ICICI Bank Limited
  • Kotak Mahindra Bank Limited
  • RBL Bank Limited
  • State Bank of India Limited
  • Yes Bank Limited

Table of Contents

Chapter 1: Executive summaryChapter 2: Socio-economic indicators
Chapter 3: Introduction
3.1. Market definition and structure
3.2. Evolution of the banking sector in India
Chapter 4: Market overview
4.1. India retail banking market overview
4.1.1. Current banking rates set by the RBI (FY 2020)
4.1.2. Credit off-take of scheduled commercial banks during FY 2014-FY 2019
4.1.3. Deposits in scheduled commercial banks during FY 2014-FY 2019
4.1.4. Region-wise and population group-wise distribution of aggregate deposits with scheduled commercial banks – FY 2019 Q1 vs FY 2020 Q1
4.2. India retail banking market segmentation
4.2.1. Category-wise segmentation – in terms of deposit (FY 2018)
4.2.2. ATM service-wise segmentation – on-site vs off-site (FY 2018)
4.2.3. Area-wise segmentation of scheduled bank ATMs (FY 2018)
4.2.4. Newly opened scheduled bank branches – tier-wise (FY 2018)
4.3. Impact of demonetization on Indian retail banking sector
Chapter 5: Key performance indicators
5.1. India retail banking market performance indicators
5.1.1. Assets of scheduled commercial banks during the FY 2014-FY 2018 period
5.1.2. Retail loans credited by scheduled commercial banks – in terms of amount outstanding (FY 2018)
5.1.3. Interest income of scheduled commercial banks for FY 2014-FY 2018 period
5.1.4. Credit cards issued by scheduled commercial banks – based on volume
5.1.5. Debit cards issued by scheduled commercial banks – based on volume
5.1.6. Payment system indicators
  • Based on value
  • Based on volume

Chapter 6: Competitive benchmarking
6.1. Allahabad Bank
  • Total deposits (INR Tn)
  • Savings account deposit (INR Tn)
  • Current account deposit (INR Tn)
  • CASA (INR Tn)
  • Total advances (INR Tn)
  • Total assets (INR Tn)
  • Net interest income (INR Tn)
  • Operating profit (INR Tn)
  • Net profit (INR Tn)
  • Net interest margin (%)
  • Return on assets (%)
  • Return on equity (%)
  • Capital adequacy ratio (%)
  • Tier I capital adequacy ratio (%)
  • Cost of income ratio (%)
Note: Similar information covered for other companies on best effort basis.
6.2. Axis Bank
6.3. Bandhan Bank
6.4. Bank of Baroda
6.5. HDFC Bank
6.6. ICICI Bank
6.7. Kotak Mahindra Bank
6.8. Ratnakar Bank
6.9. Yes Bank
Chapter 7: Development strategies adopted
7.1. Prompt corrective actions
7.2. Pradhan Mantri Jan-Dhan Yojana
7.3. Miscellaneous customer coverage schemes
7.4. Digital India
7.5. Big bank merger
Chapter 8: Market influencers
8.1. Market drivers
8.2. Market challenges
Chapter 9: Competitive landscape
9.1. Allahabad Bank
  • Company information
  • Business description
  • Products/services
  • Key people
  • Financial snapshot
  • Key ratios
  • Key financial performance indicators
  • Key business segments
  • Key geographical segments
Note: Similar information covered for all other public companies. Private companies' data given on best effort basis.
9.2. Axis Bank
9.3. Bandhan Bank
9.4. Bank of Baroda
9.5. HDFC Bank
9.6. ICICI Bank
9.7. Kotak Mahindra Bank
9.8. Ratnakar Bank
9.9. State Bank of India
9.10. Yes Bank
Chapter 10: Appendix
10.1. Research methodology
10.2. About the Publisher
10.3. Disclaimer

Companies Mentioned

  • Allahabad Bank Limited
  • Axis Bank Limited
  • Bandhan Bank Limited
  • Bank of Baroda Limited
  • HDFC Bank Limited
  • ICICI Bank Limited
  • Kotak Mahindra Bank Limited
  • Ratnakar Bank
  • State Bank of India Limited
  • Yes Bank Limited