Sector Snapshot · Banks

India's Banking System Goes Fully Digital

A fast-read primer on India's banking sector — the backdrop against which we benchmark every company's cost structure in this category.

Rs 26.84 lakh cr
UPI transaction value, Feb 2026
20.39 bn
UPI transaction volume, Feb 2026
49%
UPI's share of global real-time payments
Rs 2,08,36,572 cr
Total bank credit, Feb 2026
65%
Digital payment share projected by 2026 (BCG)

Reach Is Expanding on Every Front

More machines, more digital rails, more of the country brought into the formal banking system.

ATM Deployment (million machines)

2022 → 2024

1.24m
2022
1.46m
2024

Structure of the Banking System

Number of institutions by category

12
PSU Banks
21
Private Banks
44
Foreign Banks
11
Small Finance Banks

What's Pushing the Sector Forward

Digital infrastructure, steady credit growth, and supportive policy are reshaping the sector.

Digital Leadership
  • UPI is the world's largest real-time payment system (IMF, Dec 2025)
  • UPI accounts for 49% of global real-time payment transactions
  • Digital payments projected to reach 65% of transactions by 2026
Business Fundamentals
  • Loan growth averaged 11.77% between 2012 and 2025
  • India's fintech industry (~US$110bn in 2024) projected to reach ~US$420bn by 2029
Policy Support
  • RBI cut the policy repo rate to 5.5% in June 2025
  • Unified Lending Interface (ULI) launched to widen credit access

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

Companies We Benchmark in This Sector

Listed Indian Banks companies in tDoBe's cost-benchmarking coverage.

HDFC Bank
ICICI Bank
SBI
Kotak Mahindra Bank
Axis Bank
Union Bank of India
Punjab National Bank
Bank of Baroda
Canara Bank
Indian Bank
IDBI Bank
Federal Bank
AU Small Finance
IndusInd Bank
IDFC First Bank
Yes Bank
Indian Overseas Bank
Bank of India

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Banks Report
Compiled from public government and industry sources, February 2026 update · Figures rounded · tDoBe sector snapshot, for informational purposes