Retail Banking Industry in India 2020

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Scheduled commercial banks (SCBs) recorded INR 1,20,490.95 Bn deposits in FY 2020, expanding at compound annual growth rate (CAGR) of 3.96% during the FY 2017-FY 2020 period.

Description

Scheduled commercial banks (SCBs) recorded INR 1,20,490.95 Bn deposits in FY 2020, expanding at compound annual growth rate (CAGR) of 3.96% during the FY 2017-FY 2020 period. Credit off-take of SCBs amounted to INR 1,37,321.69 Bn in FY 2020, expanding at a CAGR of 20.17% during the FY 2017-FY 2020 period. The COVID-19 pandemic and the current economic slowdown in the country are expected to adversely affect the credit off-take of scheduled commercial banks in FY 2021. However, initiation of the big bank merger program by the Government of India and the introduction of various economic relief packages are likely to increase the business value of the major public sector banks in the country.

Various government initiatives, such as 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 2019, in terms of deposits, public sector banks held the highest market share (~68.85%), followed by private sector banks. In FY 2019, SCBs opened around 4,518 new branches in tier I cities across India, which accounts for ~46.79% of the overall new branches opened in 2019. In 2019, public sector banks had around 78,420 on-site ATMs and about 27,840 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 Such as opening zero-balance savings accounts for the low-income population group in rural areas. Government-led, bank-based pension and insurance schemes including Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana have 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 volumes 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 transactions through unauthorized cheques increased in India in FY 2019 compared to FY 2018. This, in turn, has led to customers’ dissatisfaction and loss of trust on web-based banking.

Companies covered
Axis Bank Limited
Bandhan Bank Limited
Bank of Baroda Limited
HDFC Bank Limited
ICICI Bank Limited
Indian Bank
Kotak Mahindra Bank Limited
Ratnakar Bank Limited
State Bank of India Limited
Yes Bank Limited

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Additional information

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Format

Table of Contents

Chapter 1: Executive summary

Chapter 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
4.2. Credit off-take of scheduled commercial banks for FY 2017-FY 2020
4.3. Current banking rates set by the RBI (FY 2021)
4.4. Deposits in scheduled commercial banks during FY 2017-FY 2020
4.5. Region-wise and population group-wise distribution of aggregate deposits with scheduled commercial banks – FY 2019 Q4 vs FY 2020 Q4

Chapter 5: Market segmentation
5.1. Category-wise segmentation of SCB’s – In terms of deposit (FY 2019)
5.2. ATM service-wise segmentation – On-site vs off-site (FY 2019)
5.3. Area-wise segmentation of scheduled commercial bank ATMs (FY 2019)
5.4. Newly opened scheduled bank branches – Tier-wise (FY 2019)

Chapter 6: Impact of COVID-19
6.1. Current market scenario
6.2. COVID-19 regulatory measures

Chapter 7: Key performance indicators
7.1. Assets of scheduled commercial banks for FY 2017– FY 2019
7.2. Retail loans credited by scheduled commercial banks– In terms of amount outstanding (FY 2020)
7.3. Interest income of scheduled commercial banks during FY 2018 and FY 2019
7.4. Payment system indicators (FY 2019)
– Based on value
– Based on volume

Chapter 8: Competitive benchmarking
8.1. Indian 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.

8.2. Axis Bank
8.3. Bandhan Bank
8.4. Bank of Baroda
8.5. HDFC Bank
8.6. ICICI Bank
8.7. Kotak Mahindra Bank
8.8. Ratnakar Bank
8.9. Yes Bank

Chapter 9: Market influencers
9.1. Market drivers
9.2. Market challenges

Chapter 10: Competitive landscape
10.1. Axis Bank
– Company information
– Business description
– Products/services
– Key people
– Financial snapshot
– Key ratios
– Key financial performance indicators
– Key business segments
– Key geographical segments
Note: Note: Similar information covered for all other companies.
10.2. Bandhan Bank
10.3. Bank of Baroda
10.4. HDFC Bank
10.5. ICICI Bank
10.6. Indian Bank
10.7. Kotak Mahindra Bank Limited
10.8. RBL Bank Limited
10.9. State Bank of India
10.10. Yes Bank

Chapter 11: Appendix
11.1. Research methodology
11.2. About Netscribes
11.3. Disclaimer

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