Mumbai: Public sector banks’ share of ATMs deployed in the country has declined as they consolidate their network and push for digital services, while private lenders have been on expansion mode in a war for deposits.
In the 12 months ended January 2024, PSU banks shrank 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 said it plans to add 1,500 branches during FY25. Other private banks have also announced branch expansion plans.
The reduction in PSBs was mostly in off-site ATMs, which shrank to 93,381 from 96,243 a year ago and 87,160 two years ago. Bankers said they are going slow on off-site deployment because the charge limit is not profitable in acquiring customers from other banks. There is also uncertainty about new regulations that may raise 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 per 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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