Banking

About Banking

The Banking sector is vital to India's financial system and economic growth. Indian banks serve diverse customers ranging from retail to corporate and government entities. The sector includes both public sector banks (PSBs) and private banks, each playing important roles in financial inclusion and credit distribution. Recent reforms in Indian banking, including GST implementation and demonetization, have led to digitalization and formalization of the financial system. Digital banking services, mobile banking, and fintech partnerships have transformed customer experience and expanded banking services to remote areas. Indian banks are increasingly focused on asset quality improvement, capital adequacy, and risk management. The sector has seen consolidation with mergers creating larger banking entities. Rising interest rates and loan growth present opportunities for profitability expansion. Banks are investing in technology infrastructure to enhance service delivery and reduce costs. The growth of credit in retail, agriculture, and micro-credit segments remains strong. Regulatory oversight has strengthened the resilience of the banking system. Housing loans, auto loans, and consumer credit continue to drive retail advances. The recovery of non-performing assets (NPAs) has been gradual but steady. Banking sector stocks are considered defensive and offer dividend income to investors.