Banking Operations
A bank is a financial institution that takes public deposits and extends credit to those who need it. They are a substantial part of the financial system, which assists in the overall economic development. In India, banks are broadly classified as scheduled and non-scheduled banks and are regulated under the Banking Regulation Act, 1949. Scheduled banks include all the commercial banks like nationalised, foreign, development, cooperative and regional rural banks. Non-scheduled banks are the banks that do not adhere to the norms prescribed by the Reserve Bank of India (RBI).
The data presented herein refers to the branches of scheduled commercial banks operating in India.
A bank is a financial institution that takes public deposits and extends credit to those who need it. They are a substantial part of the financial system, which assists in the overall economic development. In India, banks are broadly classified as scheduled and non-scheduled banks and are regulated under the Banking Regulation Act, 1949. Scheduled banks include all the commercial banks like nationalised, foreign, development, cooperative and regional rural banks. Non-scheduled banks are the banks that do not adhere to the norms prescribed by the Reserve Bank of India (RBI).
The data presented herein refers to the branches of scheduled commercial banks operating in India.
SUBJECT Variables
NUMBER OF BRANCHES
- The total number of branches of scheduled commercial banks in India increased to 1,54,983 as of Mar'23, a 2.4% growth over the previous year.
- 35% of the total branches of scheduled commercial banks in 2023 were in rural areas, 28.2% in semi-urban areas, 18.1% in urban areas, and 18.7% in metropolitan areas.
NUMBER OF EMPLOYEES
- The total number of employees of scheduled commercial banks in India increased to 1,765,017 in 2021-22, a 7.4% growth over the previous year.
- 42.9% of the total employees across all scheduled commercial banks in 2021-22 were employed by the public sector banks, 42.2% were employed by private sector banks, 1.5% by foreign banks, 5.3% by regional rural banks, and 7.6% by small finance banks.
- The ratio of employees in public sector banks in comparison to other banks has been steadily declining - from 73.8% in 2010-11 to 42.9% in 2021-22. Correspondingly, the ratio of employees in private-sector banks more than doubled from 16.3% to 42.2% during the same period.
RATIOS
Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's management is at using its assets to generate earnings. ROA is calculated by dividing a company’s net income by total assets. Higher ROA indicates more asset efficiency.
- The return on assets (ROA) of all scheduled commercial banks combined was 0.9% in 2021-22, in comparison to 0.7% in 2020-21.
- The ROA of public sector banks rose to 0.5% in 2021-22, reaching the same level as in 2014-15.
- The ROA of private sector banks rose from a decadal low of 0.5% in 2019-20 to 1.5% in 2021-22
- The ROA of foreign banks in 2021-22 dropped to 1.4%
- The ROA of small finance banks dropped to an all-time low of 0.5% in 2021
- The ROA of payments banks rose to -0.3% in 2021-22 from -7.2% a year ago
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