Public Sector Banks Outperform Private Banks in ATM Transactions

According to a recent report by Indus Equity, public sector banks (PSBs) are leading when it comes to cash transactions through ATMs and Cash Deposit Machines (CRMs). Meanwhile, private sector banks are ahead in terms of online payments, especially through e-commerce platforms.

ATM & Cash Deposit Machine Transactions – May 2025

• In May 2025, the total value of transactions made through ATMs and CRMs was ₹2.45 lakh crore.
• Out of this:
  • Public sector banks handled 67.52% of the total amount.
  • Private sector banks managed 30.35%.
  • Small finance banks had 1.33%, and
  • Others had 0.79% share.

This means public banks handled most of the cash-related transactions, showing their strong reach, especially in rural and semi-urban areas. Compared to March 2025, when ATM/CRM transactions were higher at ₹2.63 lakh crore, there was a drop in overall usage in May.

• In March:
  • PSBs had a 67.03% share.
  • Private banks had a 30.78% share.

So, while the total cash transaction value dropped, PSBs slightly increased their market share, and private banks saw a small decline.

Online (E-commerce) Transactions – May 2025

When it comes to digital payments and online shopping, private sector banks are clearly in the lead.

• In May 2025, the total value of e-commerce transactions was ₹1.32 lakh crore.
• From this:
  • Private sector banks handled 73.75% of the amount.
  • Public sector banks managed only 20.44%.
  • Foreign banks had 5.31% share.
  • Payment banks and small finance banks had very small shares: 0.47% and 0.02% respectively.

In March 2025, online transactions were higher at ₹1.43 lakh crore. Private banks had a slightly higher share of 75.35%, which means their share dropped a little in May, but they still lead this space.

Interestingly, public sector banks improved their online share from 18.84% in March to 20.44% in May, showing signs of catching up in the digital space.