The COVID-19 pandemic has encouraged banking customers to turn towards internet and mobile banking platforms to conduct daily transactions instead of relying on cash. We have compiled the digital banking numbers from the July to September period for four private banks — IDBI Bank, Axis Bank, ICICI Bank and Yes Bank — and for two public sector banks — State Bank of India and Punjab National Bank— to understand the growth in digital payments and digital interactions for banking services. For several private and public sector banks, relevant statistics on the quantum of transactions and users on their respective digital platforms were not available.
Here is a summary of our findings based on data disclosed in the respective investor presentations:
State Bank of India
Around 65% of all transactions processed by country’s largest lender took place on its digital platforms in Q2FY21 compared to 56% in Q2FY20, SBI said in its investor presentation.
UPI: The bank claims to have a 24.83% in UPI volumes, having processed 2.44 billion transactions in Q2FY21 compared to 720.6 million transactions in Q2FY20. It has 120 million users using its UPI service as of September 2020 compared to 74.6 million in September 2019, a growth of 60.85% YoY.
Digital users: The bank has 80.7 million internet banking users as of September 2020, around 22% higher YoY. On the mobile banking side it had 18.3 million mobile banking customers as of September 2020, around 20% higher YoY.
Cards: While SBI Cards and Payment Services handles all of SBI’s credit card business, which has seen a spike in loan defaults, on the debit card side the bank has a 29.69% market share on debit card spends across 288.9 million issued cards. Between April and September 2020, ₹77,942 crore worth of transactions took place on the banks’ debit card network.
SBI’s flagship app YONO has been a delivering strong performance this year, with 28.5 million users, it has helped the bank source a total of 1.4 million new deposits since its inception, around 21,000 new accounts a day. Further, it has helped the bank disburse ₹5,118.01 crore worth of loans in Q2FY21. On a daily basis, around 52,861 YONO cash (or card-less) transactions take place on the YONO platform, the bank said.
Punjab National Bank
PNB’s digital platforms now account for a total of 45% of all transactions as of September 2020, compared to 29.5% in September 2020, it said in its investor presentation.
UPI: The bank processed 420.5 million UPI transactions in Q2FY21 compared to 89.5 million in Q2FY20, it said.
Digital users: There are around 23.6 million internet banking customers as of September 2020 compared to 16.7 million in September 2019, around 41% higher YoY.
Cards: The bank has issued around 360,889 credit cards, and processed 1.4 million transactions in Q2FY21 compared to 1.2 million in Q2FY20. It processed 46 million transactions on the debit card side in Q2FY21 compared to 39.8 million transactions in Q2FY20.
Around 91% of total transactions processed by the bank now take place digitally compared to 86% in the previous year, it said in its investor presentation.
UPI: The bank processed 123 million UPI transactions in H1FY21 compared to 65.5 million in H1FY20, and has 3.5 million customers using its UPI service as of September 2020 compared to 2.36 million as of September 2019.
Digital users: The bank says it has 11.6 million internet banking users as of September 2020, compared to 10.7 million in September 2019, around 8% higher YoY. Further, it says it has 3.25 million mobile banking users as of September 2020 compared to 2.8 million as of September 2019, up by 16% YoY.
The bank says that around 87% of all transactions now take place digitally, compared to 80% in the previous year, it said in its investor presentation.
UPI: It claims it has a 20% market share in UPI transactions as of September 2020 up from 12% in September 2019. The bank processed 996 million UPI transactions in Q2FY21 compared to 320 million in Q2FY20, up by around 311% YoY.
Digital users: While the bank has not disclosed the number of internet and mobile banking users, mobile banking spends have risen by 71% YoY, to ₹2.33 lakh crore in Q2FY21 from ₹1.36 lakh crore in Q2FY20.
Cards: In total, the bank has 6.9 million credit cards in force as of Q2FY21, compared to 6.2 million in Q2FY20, and now commands a 11.5% market share in credit card spends. Overall, credit card spends fell to ₹12,026 in Q2FY21 from ₹19,181 crore in Q2FY20. While debit card spends fell to ₹11,071 crore in Q2FY21 compared to ₹12,672 crore in Q2FY20.
“We have also made significant progress on our digital leadership ambitions with new launches, and continued to gain disproportionate market share in UPI and mobile banking during this lockdown,” said Amitabh Chaudhry, managing director and chief executive officer, Axis Bank during an earnings call. “We continue to maintain our strong positioning in digital payments space. We have a 20% market share in the UPI ecosystem and 18% market share in mobile banking, with total debit and credit card spends up 49% QoQ,” he said.
“The retail credit card spends has been going up quarter on quarter, whereas in line with the soft economy [last year] we reduced limits and de-focussed on the commercial credit card segment. Last year, commercial credit cards contributed 39% to total spends which has reduced to 14%,” said Sumit Bali, president of retail lending and payments, Axis Bank during a media interaction following the banks’ results.
In its investor presentation, the bank said that around 90% of transactions from its savings account customers now take place digitally compared to 87% in the previous year.
UPI: The bank claims to have a 21% market share in UPI transactions, having processed 461 million transactions worth over ₹27,570 crore in Q2FY21 compared to 194 million transactions worth ₹7,116 crore in Q2FY20. This is a growth of 237% YoY in volume terms and 387% YoY in value terms.
Digital users: The bank has not disclosed the number of internet and mobile banking users, however mobile banking transactions have risen by 64.5% YoY, to 366.9 million in Q2FY21 from 223 million in Q2FY20.
Cards: While debit card spends in September 2020 were at 90% of pre-COVID levels, credit card spends in September 2020 were at 85% of pre-COVID levels, the bank said. The bank has 87.4 million debit cards in force and total spends fell to ₹14,576 crore in Q2FY21 from ₹17,490 crore in Q2FY20. Spends on credit cards has increased marginally to ₹20,622 crore in Q2FY21 from ₹20,400 crore in Q2FY20. In total, the bank has 9.3 million credit cards in force as of September 2020.
“Credit card spends have recovered to about 85% of pre-Covid levels in September led by increased spends in categories such as health & wellness, electronics and e-commerce. We expect the momentum in spends to continue on account of the festive season,” said Rakesh Jha, chief financial officer, ICICI Bank during an earnings call.
UPI: The bank processed 662 million UPI transactions in Q2FY21, down from 1.07 billion in Q2FY20, down by around 38% YoY. It claims that it has a market share of over 37% in UPI transactions in its investor presentation.
Digital users: The bank has 1.9 million internet banking users and processed ₹55,408 crore worth of transactions in Q2FY21. On the mobile banking side, it has 1.5 million users and processed around ₹19,843 crore worth of transactions in Q2FY21. Comparable figures for the previous year were not available.
Cards: The bank has around 816,000 credit cards in force and over 3 million debit cards in force. The bank has not published details of card spends for the quarter.
“We continue to be having a leadership position of the technology side. So on the UPI, we are #1 in P2M transactions, 37% market share, continue to be #1. On the IMPS, we are the #1 remitter bank among peer banks,” said Prashant Kumar, managing director and chief executive officer, Yes Bank during an earnings call.