Banking Channel Transformation

The total equity funding of microfinance sector grew at

42% y-o-y to Rs 14,206 crore (US$ 2.03 billion) in 2018-19
Retail witnessed growth of ~17% over past 5 fiscals on the
back of continued demand for home loans (~16% CAGR) &
personal loans (~19% CAGR)
Higher slippages and lower recoveries due to pandemic to
increase NPAs by ~150-200 bps to 11-11.5% by fiscal 2021
PCA and Merging banks to need ~Rs. 650 bn of funds to
absorb losses & comply with Basel 3 in fiscal 2021,2022
*Rates as of 13th November 2020

Sources
Deloitte, BCG CRISIL PwC
www.ibef.org www.slalom.com uk.worldline.com