Report Overview

India Retail Banking Market - Industry Trends & Forecast Report, 2029

India retail banking market size was estimated at USD 115.42 billion in 2022. During the forecast period between 2023 and 2029, the size of India retail banking market is projected to grow at a CAGR of 5.4% reaching a value of USD 166.78 billion by 2029. Major growth drivers for the India retail banking market include an increasing urbanization, rising disposable incomes, and technological advancements. Increased urban migration prompts evolving banking needs, while rising incomes amplify demand for banking services. Technological advancements, including online banking and digital payments, reshape customer interactions. The government's efforts to merge prominent banks and implement diverse economic stimulus plans are expected to enhance the commercial worth of the predominant public sector banks within the nation. Numerous governmental endeavors, including the expansion of banks' public service outlets in rural regions, the Pradhan Mantri Jan Dhan Yojana initiative, as well as the provision of free credit and debit cards featuring conservative transaction thresholds, are propelling the advancement of the retail banking domain.

India Retail Banking Market – Overview

India retail banking market refers to the sector within India's financial industry that provides a wide range of banking services directly to individual consumers and small businesses. It encompasses various financial products and services tailored to meet the personal and business banking needs of customers. These services include savings accounts, checking accounts, loans, mortgages, credit cards, debit cards, personal financial management, and electronic banking options like online banking and mobile apps. The market is influenced by factors such as urbanization, rising disposable incomes, technological advancements, and government initiatives aimed at enhancing financial inclusion and accessibility. The growth of the India Retail Banking Market is driven by evolving consumer preferences, economic trends, and regulatory developments that shape the landscape of retail banking services in the country.

India Retail Banking Market

Growth Drivers

Deepening Penetration of Smartphones and Mobile Internet

India retail banking market's growth is fueled by the escalating reach of smartphones and the internet. This digital expansion enables banks to provide accessible and convenient digital banking services to a broader population. With smartphones becoming ubiquitous and internet connectivity expanding, customers can conduct a range of banking activities, from fund transfers to loan applications, seamlessly. This technological integration enhances customer experiences and operational efficiency while reducing costs. The trend also promotes competitive offerings and streamlined services. Overall, the increasing penetration of smartphones and the internet plays a pivotal role in propelling the India retail banking market's expansion, ensuring convenience, accessibility, and improved services.

Restraints

Increasing Competition from Non-banking Financial Institutions (NBFIs)

India retail banking market's growth encounters a hurdle in the form of rising competition from non-banking financial institutions (NBFIs). These entities, which operate outside the traditional banking framework, offer a diverse range of financial services that attract customers seeking alternative options. NBFIs often provide innovative and specialized services, posing a challenge to traditional banks. This competition compels retail banks to enhance their offerings, technology, and customer experience to maintain their market share. The influence of NBFIs necessitates a strategic response from retail banks to ensure sustained growth and customer retention amidst the evolving financial landscape.

Impact of COVID-19 on India Retail Banking Market

Covid-19 pandemic had a positive impact on the India retail banking market. Lockdowns and social distancing measures disrupted traditional banking operations, prompting an accelerated shift toward digital banking. Banks faced increased demand for online services, highlighting the importance of digital readiness. Loan repayment challenges emerged due to economic hardships, leading to asset quality concerns. The pandemic emphasized the need for robust risk management. Government relief measures and RBI interventions mitigated some effects. In sum, COVID-19 expedited digital transformation, altered customer behavior, posed credit risks, and underscored the essentiality of adaptive strategies in the India retail banking market.

India Retail Banking Market

Segmental Coverage

India Retail Banking Market – By Type

By type, the India retail banking market is divided into Public Sector Banks, Private Sector Banks, Foreign Banks, Community Development Banks, and Non-banking Financial Companies (NBFC) segments. The private sector banks segment is expected to hold the highest share in the India retail banking market by type during the forecast period. It can be attributed to can be attributed to its adeptness in adapting to the evolving dynamics and responsiveness of market conditions. The private sector comprises a diverse range of banks and financial institutions that compete intensely to establish a prominent position in the market. Private banks frequently possess a heightened capability to allocate resources to technology, infrastructure, and promotional endeavors, enabling them to introduce inventive products and services to entice clientele. The fierce competition inherent to the private sector compels banks to consistently enhance their suite of offerings, augment customer experiences, and fortify their overall value proposition. This phenomenon substantiates their prevailing influence and supremacy within the market landscape.

India Retail Banking Market – By Service

Based on service, the India retail banking market is divided into Saving and Checking Accounts, Transactional Accounts, Personal Loans, Home Loans, Mortgages, Debit & Credit Cards, ATM Cards, and Certificates of Deposits segments. The saving and checking account segment held a highest market share by service. Banking serves as a secure repository for deposits and oversees the management of funds and essential transactions to fulfill daily objectives. Day-to-day expenses are covered using a checking account, a specific type of bank account. These accounts have no withdrawal limitations and offer easy accessibility. By consistently depositing funds into a savings account, individuals can accumulate savings and bolster their financial well-being. This platform provides a means to store money that isn't immediately required.

India Retail Banking Market – By Region

Regionally, the India retail banking market is divided into North India, South India, East India, and West India.

Competitive Landscape

Major players operating in the India retail banking market include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Punjab National Bank, Bank of Baroda, IndusInd Bank, and IDFC FIRST Bank. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2022 - the Indian banking sector embarked on transformative initiatives to enhance accessibility and services. Prime Minister Narendra Modi inaugurated 75 Digital Banking Units (DBUs) across districts, aiming to extend financial services reach. Proposed in the Union Budget 2023-24, a Central Bank Digital Currency (CBDC) or 'Digital Rupee' offers innovative transaction solutions. The same budget introduced risk-based KYC strategies, adapting to evolving regulatory frameworks.

Scope of the Report

By Type

• Public Sector Banks

• Private Sector Banks

• Foreign Banks

• Community Development Banks

• Non-banking Financial Companies (NBFC)

By Service

• Saving and Checking Accounts

• Transactional Accounts

• Personal Loans

• Home Loans

• Mortgages

• Debit & Credit Cards

• ATM Cards

• Certificates of Deposits

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Retail Banking Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. The growing middle class in India
         2. The increasing penetration of smartphones and the internet
         3. The growing demand for digital banking services
      2. Restraints
         1. The high level of non-performing loans (NPLs)
         2. The increasing competition from non-banking financial institutions (NBFIs)
      3. Opportunities
         1. The growth of the rural banking sector
         2. The increasing demand for wealth management services
      4. Challenges
         1. The need to comply with government regulations
         2. The need to manage risks associated with digital banking
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Retail Banking Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Public Sector Banks
         2. Private Sector Banks
         3. Foreign Banks
         4. Community Development Banks
         5. Non-banking Financial Companies (NBFC)
      2. By Service
         1. Saving & Checking Accounts
         2. Transactional Accounts
         3. Personal Loans
         4. Home Loans
         5. Mortgages
         6. Debit & Credit Cards
         7. ATM Cards
         8. Certificates of Deposits
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Retail Banking Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Service
6. South India Retail Banking Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Service
7. East India Retail Banking Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Service
8. West India Retail Banking Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Service
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Retail Banking Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Retail Banking Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. State Bank of India
    2. HDFC Bank
    3. ICICI Bank
    4. Axis Bank
    5. Kotak Mahindra Bank
    6. Punjab National Bank
    7. Bank of Baroda
    8. IndusInd Bank
    9. IDFC FIRST Bank
    10. Federal Bank
    11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Retail Banking Market Segmentation

Figure 2       India Retail Banking Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       India Retail Banking Market Size, By Value (USD Billion), 2019–2029

Figure 5       India Retail Banking Market Share, By Type, By Value, 2019–2029

Figure 7       India Retail Banking Market Share, By Service, By Value, 2019–2029

Figure 8       India Retail Banking Market Share, By Region, By Value, 2019–2029

Figure 10     North India Retail Banking Market Size, By Value (USD Billion), 2019–2029

Figure 11     North India Retail Banking Market Share, By Type, By Value, 2019–2029

Figure 12     North India Retail Banking Market Share, By Service, By Value, 2019–2029

Figure 13     South India Retail Banking Market Size, By Value (USD Billion), 2019–2029

Figure 14     South India Retail Banking Market Share, By Type, By Value, 2019–2029

Figure 15     South India Retail Banking Market Share, By Service, By Value, 2019–2029

Figure 16     East India Retail Banking Market Size, By Value (USD Billion), 2019–2029

Figure 17     East India Retail Banking Market Share, By Type, By Value, 2019–2029

Figure 18     East India Retail Banking Market Share, By Service, By Value, 2019–2029

Figure 19     West India Retail Banking Market Size, By Value (USD Billion), 2019–2029

Figure 20     West India Retail Banking Market Share, By Type, By Value, 2019–2029

Figure 21     West India Retail Banking Market Share, By Service, By Value, 2019–2029   

List of Tables

Table 1        India Retail Banking Market Size, By Type, By Value, 2019–2029

Table 2        India Retail Banking Market Size, By Service, By Value, 2019–2029

Table 3        India Retail Banking Market Size, By Region, By Value, 2019–2029

Table 4        North India Retail Banking Market Size, By Type, By Value, 2019–2029

Table 5        North India Retail Banking Market Size, By Service, By Value, 2019–2029

Table 6        South India Retail Banking Market Size, By Type, By Value, 2019–2029

Table 7        South India Retail Banking Market Size, By Service, By Value, 2019–2029

Table 8        East India Retail Banking Market Size, By Type, By Value, 2019–2029

Table 9        East India Retail Banking Market Size, By Service, By Value, 2019–2029

Table 10      West India Retail Banking Market Size, By Type, By Value, 2019–2029

Table 11      West India Retail Banking Market Size, By Service, By Value, 2019–2029

Table 12      State Bank of India Company Overview

Table 13      State Bank of India Financial Overview

Table 14      HDFC Bank Company Overview

Table 15      HDFC Bank Financial Overview

Table 16      ICICI Bank Company Overview

Table 17      ICICI Bank Financial Overview

Table 18      Axis Bank Company Overview

Table 19      Axis Bank Financial Overview

Table 20      Kotak Mahindra Bank Company Overview

Table 21      Kotak Mahindra Bank Financial Overview

Table 22      Punjab National Bank Company Overview

Table 23      Punjab National Bank Financial Overview

Table 24      Bank of Baroda Company Overview

Table 25      Bank of Baroda Financial Overview

Table 26      IndusInd Bank Company Overview

Table 27      IndusInd Bank Financial Overview

Table 28      IDFC FIRST Bank Company Overview

Table 29      IDFC FIRST Bank Financial Overview

Table 30      Federal Bank Company Overview

Table 31      Federal Bank Financial Overview

Table 32      Other Prominent Players Company Overview

Table 33      Other Prominent Players Financial Overview