Mumbai: The share of public sector banks in ATMs deployed in the country has shrunk as they consolidate their network and push digital services, while private lenders have been on expansion mode in a war for deposits.
In the 12 months ended Jan 2024, PSU banks shrunk their ATM network by 1,343 to 1,36,173 machines, while private banks added 3,502 ATMs, taking their network to 79,225.
HDFC Bank has said that it plans to add 1,500 branches during FY25. Other private banks too have announced plans for branch expansion.
The reduction by PSBs has been largely in offsite ATMs, which have shrunk to 93,381 from 96,243 a year ago and 87,160 two years ago. Bankers said that they are going slow on offsite deployment because the cap on charges does not make it profitable to acquire customers of other banks. There is also uncertainty about new regulations that may push up the cost of operations.
The average number of transactions per ATM is around 2,400 and the average withdrawal amount is Rs 4,918 per transaction. Bandhan Bank has the highest average transactions per ATM, 5,269. Among PSU banks, Punjab National Bank has the highest number of ATMs for one lakh debit cardholders, at 30. The lowest number of ATMs per cardholder is Bank of Baroda, at 11. Among large private banks, ICICI Bank has 52 ATMs per lakh cardholders, while HDFC has 38.
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