Banking Sector Analysis
SECTOR ANALYSIS
BANKING SECTOR IN INDIA
•
SUMMARY
GROWING LENDING AND DEPOSIT: Total lending and deposits have
increased at CAGR of 22.8 per cent and 21.2 per cent, respectively, during
FY06-13
•
HIGHER ATM PENETRATION: Total number of ATMs in India have
increased to 1,04,500 in 2012 and is further expected to double over the next two years
•
RISING RURAL PENETRATION: With the help of Financial Inclusion Plan
(FY10-13), the banking connectivity in India increased more than threefold to 211,234 villages in 2013 from 67,694, at the beginning of the plan period
•
ROBUST ASSET GROWTH: Total assets has reached USD1.5 trillion in
FY12 from USD1.3 trillion in FY10, with 73 per cent of it being accounted by the public sector
EVOLUTION OF INDIAN BANKING SECTOR
2000
onwards
1956-2000
1936-55
1935
1921
1.Closed market
2.State-owned
Imperial Bank of
India was the only bank existing 1.RBI was established as the central bank of country 2.Quasi central banking role of
Imperial Bank came to an end
1.Imperial Bank expanded its network to 480 branches 2.In order to increase penetration in rural areas, Imperial
Bank was converted into
State Bank of India
1.Nationalisation of
14 large commercial banks in 1969 and 6 more banks in 1980
2.Entry of private players such as ICICI intensifying the competition 3.Gradual technology up gradation in PSU banks 1.Number of banks increased to 26 public sector banks,
21 private sector banks and 43 foreign banks 2. Advent of mobile and internet banking
3.Growing FDI in the Indian banking sector STRUCTURE OF INDIAN BANKING SECTOR
Reserve Bank of India
Banks
Financial
Institutions
State-level institutions All-India financial institutions Other institutions
Scheduled Commercial Banks
(SCBs)
Foreign banks
(43)
Urban cooperative banks (1,674)
Rural cooperative credit institutions (96,751)
Cooperative credit institutions
Public sector banks (26)
Private sector banks (21)
Regional Rural
Banks (RRB)
(62)
NOTABLE TRENDS IN
BANKING SECTOR IN INDIA
•
SUMMARY
GROWING LENDING AND DEPOSIT: Total lending and deposits have
increased at CAGR of 22.8 per cent and 21.2 per cent, respectively, during
FY06-13
•
HIGHER ATM PENETRATION: Total number of ATMs in India have
increased to 1,04,500 in 2012 and is further expected to double over the next two years
•
RISING RURAL PENETRATION: With the help of Financial Inclusion Plan
(FY10-13), the banking connectivity in India increased more than threefold to 211,234 villages in 2013 from 67,694, at the beginning of the plan period
•
ROBUST ASSET GROWTH: Total assets has reached USD1.5 trillion in
FY12 from USD1.3 trillion in FY10, with 73 per cent of it being accounted by the public sector
EVOLUTION OF INDIAN BANKING SECTOR
2000
onwards
1956-2000
1936-55
1935
1921
1.Closed market
2.State-owned
Imperial Bank of
India was the only bank existing 1.RBI was established as the central bank of country 2.Quasi central banking role of
Imperial Bank came to an end
1.Imperial Bank expanded its network to 480 branches 2.In order to increase penetration in rural areas, Imperial
Bank was converted into
State Bank of India
1.Nationalisation of
14 large commercial banks in 1969 and 6 more banks in 1980
2.Entry of private players such as ICICI intensifying the competition 3.Gradual technology up gradation in PSU banks 1.Number of banks increased to 26 public sector banks,
21 private sector banks and 43 foreign banks 2. Advent of mobile and internet banking
3.Growing FDI in the Indian banking sector STRUCTURE OF INDIAN BANKING SECTOR
Reserve Bank of India
Banks
Financial
Institutions
State-level institutions All-India financial institutions Other institutions
Scheduled Commercial Banks
(SCBs)
Foreign banks
(43)
Urban cooperative banks (1,674)
Rural cooperative credit institutions (96,751)
Cooperative credit institutions
Public sector banks (26)
Private sector banks (21)
Regional Rural
Banks (RRB)
(62)
NOTABLE TRENDS IN