“Many Indian private sector banks including
, And . We are expanding our local branch network, contrary to the expectation that digitization will eliminate the need for physical branches,” said a release by the market intelligence unit.
According to data from S&P Global Market Intelligence, the number of branches operated by private sector banks increased to 16,189 in the year ended March 31, from 14,893 a year ago. HDFC Bank and
HDFC Bank branch expansion increased from 5,608 to 6,342 and Axis Bank branches increased from 4,594 to 4,758. Singapore-headquartered DBS Group Holdings Limited, which has acquired The . There are also plans to expand to smaller cities, to become the largest overseas lender by branches in India in 2020.
“Private sector banks are in expansion mode in India, riding on economic growth that is among the fastest in the world. Their presence is often less in some states and smaller cities,” the report said.
In contrast, state-owned banks, which dominate banking Scenario is trimming their branch networks to improve financial efficiencies and as they continue to strengthen amid the government’s move to curtail their presence in the industry. According to data from S&P Global Market Intelligence, total branches of state-run banks declined to 59,238 as of March 31, from 61,031 at the end of the previous fiscal.
At the same time, both private and public sector lenders in India continue to focus on digital apps, allowing customers to perform basic banking operations without stepping out of their homes. In addition, digital banking also got a boost from the COVID-19 pandemic, which forced a lockdown in many parts of the country, the report said.
While young Indians are adopting mobile phone apps, the older generation and people from smaller towns prefer to deal with bank officials even for routine tasks such as checking account balances or opening deposit accounts.