Growth and Evolution of the Industry

Indian Banking sector consist of 27 public banks, 21 private banks, 49 foreign banks and 56
regional rural banks. Indian Banking sector has registered strong growth in the past decade.
Demand for loans has grown for both corporate & retail, particularly in service, real estate,
consumer durables & agriculture allied sectors. Government efforts to promote banking
technology and expansion in rural areas have significantly improved the financial inclusion in
the past few years. Sectorial level employment data(2017) suggests that Bank are providing
huge employment opportunities in the country, nearly around 21% of total employment and is
among the top 5 best growing sectors of India.

 Banking Sector Continues to Grow at a Healthy Pace

 Growth in Credit take-overs

During FY07-18, the total lending by banks has increased from US $429.92 billion to
$1347.18 billion at a CAGR of 10.94%.

The high demand is aided by strong economic growth, rising disposable incomes,
increasing consumerism & easier access to bank credit.
 Growth in Indian bank Deposit:

Deposit has reached US$1.7 trillion in the FY18 at a CAGR of 11.66%

Strong growth in savings, rising disposable income levels, improved banking system,
digitalization, etc.

 Banking Sector Assets (US $Billion):

Assets base of total banks has increased at a CAGR of 5.97 % to US$ 2.22 trillion during
FY13-18 with interest income CAGR of 6.61% over FY09-18.
 Evolution of Industry

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalized and well-regulated. The financial and economic conditions in the country are far
superior to any other country in the world. Credit, market and liquidity risk studies suggest that
Indian banks are generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. RBI’s new measures may go a long way in
helping the restructuring of the domestic banking industry.

The digital payments system in India has evolved the most among 25 countries with
India’s Immediate Payment Service (IMPS) being the only system at level 5 in the Faster
Payments Innovation Index (FPII).