UPI Transaction: People in India are doing UPI transactions in full swing. Regarding UPI transactions, Boston Consulting Group (BCG) said in Banking Sector Roundup – FY24 that UPI transactions in India have increased by 57 percent on an annual basis. PhonePe and GPay have 87 percent share in the UPI market. Let us know in detail in this report.
Unified Payment Interface (UPI) is people’s first choice for digital payments. According to Boston Consulting Group (BCG) Banking Sector Roundup – FY24, UPI transactions saw a growth of 57 percent year-on-year in FY24. PhonePe and Google Pay have the highest share in this.
According to the report, PhonePe and Google Pay have 86 percent share in the combined market of UPI.
Decrease in debit card transactions
Credit card transactions have doubled in the last three years. At the same time, there has been a decline of 43 percent in debit transactions on an annual basis. The Indian banking system has maintained strong momentum in credit growth. Credit growth has increased by 15 percent and debit growth by 13 percent in FY24.
For the first time in the financial year 2024, the total net profit of the banking sector has crossed Rs 3 lakh crore. All bank groups achieved a growth of more than 1 percent in Return on Assets (ROA). The bank has benefited from high credit growth, good health fee income growth and low credit growth.
Private bank profits grew by 25 per cent year-on-year (YoY), while public sector banks (PSBs) saw a 34 per cent rise in net profit.
Bank will have to pay attention to GNPA
BCG report said that banks need to pay attention to the quality of their assets. Gross non-performing assets of banks have reached an all-time low of 2.8 percent. The report reduced the gross non-performing assets of public sector banks to 3.5 per cent and the GNPA of private banks to less than 1.7 per cent.
According to the report, India’s economic growth for fiscal year 2024 grew at the rate of 8.2 percent, surpassing all estimates. In such a situation, the economic growth for the current financial year i.e. FY25 is expected to be between 6.2 percent to 7 percent on an annual basis. S&P Global Ratings also upgraded India’s sovereign rating outlook to positive from stable.
