INSIGHTS Retail Banking

Segment Wise Analysis Industry Analysis Industry Drivers

Assets ($ bn, Return on Assets Buyers Medium: Ease of switching
Segment companies based on service quality Revenue Drivers Cost Drivers Growth Drivers
March ‘17) (%, March ‘17) Power
Public Banks 1518.46 -0.47 Suppliers Low: Industry is regulated by RBI and
Power its norms Easy accessibility Investment in Strong GDP growth
Private Banks 558.92 1.02 through ATMs and security systems (7% CAGR expected
Low: Stringent regulatory norms & net banking due to cyber threat over 2012–17)
Foreign Banks 125.52 0.60 New
customer preference for reputed
Entrants financial services companies
Key Trends Convenience
Threat of Low: Few substitutes available for Cut in repo rate by
Investment in banking through
• Majority of the banks already meet capital substitutes financial products RBI, and further
requirements of Basel III development of technological
cuts expected,
• SMAC, CRM and data warehousing will drive the Competitive cloud technology advancements,
High: Compete on financing rates, reducing interest
next wave of technology in banks and Big Data attracting new
rivalry deposit rates, investment services rates
• Indian banks are expanding in the rural areas under customers
Pradhan Mantri Jan Dhan Yojna Top Players (By Assets) Adoption of Big Loss from NPAs is
• With entry of foreign banks, banks are increasingly Data to identify >11%, implying the
Growth in
looking at consolidation • State Bank of India (Rs. 2,674,380.65 cr) disposable income,
demand, price banks are at the
• In adoption of mobile banking, India holds 4th rank • HDFC Bank(Rs. 863,840.19 cr) raising demand for
points for new brink of being risk
across the globe • ICICI Bank (Rs. 771,791.45 cr) personal credit
services, and ROI assets