Eco - Size of The Market FV

Managerial Economics | Project-report | Analysis of Indian Banking Sector
Due to the government's consistent efforts to advance banking technology and encourage
expansion in unbanked and non-metropolitan areas, access to the banking system in India has
increased over time. India is anticipated to have the third-largest domestic banking sector by
2050.
Strong economic growth, increased disposable incomes, rising consumption, and greater
access to credit have all helped the Indian banking sector to grow. At the same time, despite
global changes, India's banking industry has held steady, maintaining public trust throughout
time.
Both corporate and retail loans are in greater demand. Services, real estate, consumer
durables, and related industries to agriculture have driven credit expansion. Bank credit
increased by 18.1%, indicating a post-pandemic rebound, and private, new banks are still
gaining market share.
Source: Reserve Bank of India (RBI), Invest India, BCG Report
One of the world's Fintech markets with the quickest growth is India. In India, there are
already over 2,000 DPIIT-recognized Financial Technology (FinTech) companies, and this
number is rising quickly.
The total number of ATMs is estimated to be 2,17,092 as of December 2022. The adoption of
digital assistants, social media tools, and third-party channels is on the rise.
Deposits at all scheduled banks increased by a staggering Rs. 1.98 lakh crore (US$ 24.32
billion) as of May 5, 2023, at a growth rate of 10.2%, according to the RBI's Scheduled
Banks' Statement.
The combined assets of the public and private banking sectors were respectively $1,553.57
billion and $901.3 billion dollars in 2022–2023. Public sector bank assets made for 59.24%
of all banking assets.
Pg. 1 | Team members - Ankit Chakraborty(2023PGW003) Srishti Mishra(2023PGW029) Swagat Khuntia(2023PGW032) Parikshit
Kundu(2023PGW016) Titash Mitra(2023PGW034) Sourav Manna(2023PGW028)
In 2022–2023, public sector banks contributed for more than 56.4% of interest income.
Public banks' interest income totalled $86.7 billion. Private banking industry's interest income
totalled US$ 57.58 billion.
Public sector banks contributed for around 51.4% of other income in 2022–2023. 'Other
income' for public sector banks was US$ 16.76 billion, while US$ 12.4 billion was earned by
the private banking industry.
Source: Indian Bank’s Association
Commercial banks' balance sheets grew at a multi-year high rate in 2021–2022. The
pandemic's effects on banks' financial performance and soundness measures were mitigated
by timely policy support. Profitability has increased sequentially to levels last seen in 2014–
15, as the legacy burden of non–performing assets (NPAs) is reducing. As a result, slippages
have decreased and capital buffers have grown.
After a seven-year pause, the consolidated balance sheet of the scheduled commercial banks
(SCBs) experienced double-digit expansion in 2021–2022. Public sector banks (PSBs)
continue to dominate the consolidated balance sheet, despite some recent deceleration. At the
end of March 2022, they represented 62% of all outstanding deposits and 58% of all loans
and advances made by SCBs.
Consolidated Balance Sheet of Scheduled Commercial Banks:
Investments of SCBs:
Trends in Income and Expenditure of Scheduled Commercial Banks:
Component-wise Capital Adequacy of SCBs:
Resources Raised by Banks through Private Placements:
Movement in Non-Performing Assets:
Classification of Loan Assets by Bank Group:
Sectoral Deployment of Gross Bank Credit by SCBs:
Sector-wise GNPAs of Banks:
Although the proportion of loans to priority sectors in total loans climbed slightly from
35.3% in 2020–21 to 35.8% in 2021–22, their proportion in total GNPAs jumped from 40.4%
to 43.1%, driven primarily by defaults in the agriculture sector. While SFBs lend to the
priority sector with 76% of their total loans, this portfolio accounts for close to 88% of their
NPAs. On the other hand, the priority sector for PVBs produced a significantly lower share of
NPAs.

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Managerial Economics | Project-report | Analysis of Indian Banking Sector

Source: Reserve Bank of India (RBI), Invest India, BCG Report

Source: Indian Bank’s Association

Trends in Income and Expenditure of Scheduled Commercial Banks:

Component-wise Capital Adequacy of SCBs:

Resources Raised by Banks through Private Placements:

Movement in Non-Performing Assets:

Classification of Loan Assets by Bank Group:

Sectoral Deployment of Gross Bank Credit by SCBs:

Sector-wise GNPAs of Banks:

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