India’s Leading BFSI & FinTech Companies 2024

[ BANKING SECTOR OVERVIEW ] India’s Leading BFSI and FinTech Companies 2024 5 scheduled commercial banks witnessed healthy growth in FY2023. The Indian banking sector also remained well capitalized during the year and reported the lowest GNPA since FY2015. NBFCs also witnessed healthy expansion in their balance sheets led by double digit credit growth in FY2023. In case of insurance sector, All the sector overviews in this publication endeavor to provide an overview of the Indian BFSI & FinTech industry, highlighting sector performance in FY23. Given that the industry has gone through a seismic shift over the years, the sector overviews also attempt to take stock of the changes each sector has faced over the last decade. Moreover, the sector overviews identify and elaborate on the key game changers that will redefine the BFSI & FinTech industry in the next five years. BANKING SECTOR OVERVIEW INDIAN BANKING SECTOR OVER THE LAST DECADE India’s banking sector has undergone a paradigm shift over the last decade driven by the enhanced role of digital technology, changes in lending pattern and asset quality. It has also transitioned from the branch banking to simple automation of paperwork in bank branches and to today’s branchless banking. PERFORMANCE OF INDIAN BANKING SECTOR BASED ON KEY INDICATORS ASSETS/LIABILITIES The assets/liabilities of scheduled commercial banks (SCBs) have witnessed tremendous growth during the last decade (FY2014- FY2023) as compared to the previous decade. During FY2014- FY2023, total assets/liabilities of SCBs have grown by ` 133 trillion as compared to ` 76 trillion during FY2004-FY2013. In fact, the growth in assets/liabilities of SCBs in the last decade surpasses that achieved in the previous six decades. Total assets/liabilities witness robust growth ( ` trillion) Source: RBI, Dun & Bradstreet Research BANK CREDIT Growth in gross bank credit (food & non-food) of SCBs almost stagnated during FY2014-FY2023 after witnessing an impressive growth in the preceding decade. Gross bank credit registered a CAGR of 8.6% during FY2014- FY2023 as against 20% during FY2004-FY2013. This can largely be attributed to the stressed assets position in the last decade as well as abysmally low credit offtake during the pandemic period. Dun & Bradstreet