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.