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Robust Asset Growth Growing Lending and Deposit Higher ATM Penetration

The Indian banking sector has experienced robust growth in recent years. Total assets increased from $1.52 trillion in FY17 to $1.56 trillion in FY18. Lending and deposits have increased at a CAGR of over 10% during FY07-18. The number of ATMs has also risen significantly and continued expansion of rural banking access points is driving further financial inclusion across India.

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Raza Murad
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41 views

Robust Asset Growth Growing Lending and Deposit Higher ATM Penetration

The Indian banking sector has experienced robust growth in recent years. Total assets increased from $1.52 trillion in FY17 to $1.56 trillion in FY18. Lending and deposits have increased at a CAGR of over 10% during FY07-18. The number of ATMs has also risen significantly and continued expansion of rural banking access points is driving further financial inclusion across India.

Uploaded by

Raza Murad
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Growth

Robust asset Value of public sector bank assets increased to US$ 1.56
growth trillion in FY18 from US$ 1.52 trillion in FY17.

Total lending has increased at a CAGR of 10.94 per cent during


Growing lending FY07-18 and total deposits have increased at a CAGR of 11.66 per
and deposit cent, during FY07-18 and are further poised for growth, backed by
demand for housing and personal finance.

Higher ATM As on March 31, 2019, the total number of ATMs in India
increased to 2,21,703 and is further expected to increase to
penetration 407,000 by 2021.

As of September 2019, 44 regional rural banks are functioning in


the country.
Rising rural RBI has allowed, regional rural banks with net worth of at least
US$ 15.28 million to launch internet banking facilities.
penetration As of September 2018, the Government of India has launched India
Post Payments Bank (IPPB) and has opened branches across 650
districts to achieve the objective of financial inclusion.
INDIAN BANKING SECTOR HAS GROWN AT A HEALTHY
PACE…(1/2)

Growth in credit off-take over past few years


(US$ billion) (as of Sept 2019)
1600
1400.03 1408.21
1400 1347.18
1180.19
1200 1124.86 1149.19
1001.73 1014.75 1038.36
1000 894.16
800
600
400
200
0
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20

 Credit off-take has been surging ahead over the past decade, aided by strong
economic growth, rising disposable incomes, increasing consumerism & easier
access to credit.
 During FY07-18, credit off-take grew at a CAGR of 10.94 per cent.
INDIAN BANKING SECTOR HAS GROWN AT A HEALTHY
PACE…(2/2)

Growth in deposits over past few years


(US$ billion) (as of April 2019)
2000 1866.22
1781.12
1800
1599.34
1600 1459.051466.47
1400 1267.611287.91314.99
1182.45
1200
961.83
1000
807.63 854.28
800
575.72
600 474.18
400
200
0
FY 6 FY 7 FY 8 FY 9 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

 During FY07–18, deposits grew at a CAGR of 11.66 per cent and reached
US$ 1.6 trillion by FY17.
 Strong growth in savings amid rising disposable income levels are the major
factors influencing deposit growth.
Total Banking sector assets (US$ billion)
2500 2358.15
2202.9
1959.98 1957.03
2000 1797.58
1570.54 1518.46 1557.04
1500 1421.4 1347.9
1305
1140.2
1000
666.99
488.1 558.92
500 369.9 415.1
325.9
104.5 122.6 123.5 121.1 125.52 134.12
0
FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

Public Sector Private Sector Foreign Banks Total Assets-RHS

Interest income growth in Indian banking sector


(US$ billion)
120
103.4 102.2 102.9
100

80 76.4
67.1
57.6
60

40 28.7 30.7 31.4


17.9 18.2 20.2
20
6.4 5.8 5.9 7.7 7.8 7.6
0
FY 9 FY 10 FY 11 FY 12 FY 13 FY 14

Private Sector Public Sector Column1


'Other income' growth in Indian banking sector
(US$ billion)
20
17.66 17.8
18
16
14 12.39 12.35
12 10.2 10.7 10.5 10.8 10.37
10 9.85
10 8.9
8 7.4
6.7
5.3 5.5 5.9
6 4.3 4.3
3.73.1
4 2.3 2.3 2.2 2.4 2.46
2.1 2.1 1.86 2.04
2
0
FY 9 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

Public Sector Private Sector Foreign Banks

‘Other income’ for the sector has risen at 7.54 per cent CAGR during FY09-18.

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