Public sector banks lead in ATM transactions; private nanks dominate e-com payments

Public sector banks (PSBs) continue to command a dominant share in traditional cash-based transactions through ATMs and cash deposit machines (CRMs), while private sector banks maintain their stronghold in the digital payments space, particularly e-commerce, according to the latest data from Indus Equity.

The report revealed that the total value of ATM and CRM transactions in May 2025 stood at ₹2.45 lakh crore, a decline from ₹2.63 lakh crore recorded in March 2025.

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Of this, public sector banks accounted for a substantial 67.52% share, up from 67.03% in March. Private sector banks held 30.35% of the market in May, down from 30.78% in March, while small finance banks and others contributed 1.33% and 0.79%, respectively.

Despite the dip in overall ATM and CRM transaction value, PSBs have marginally increased their market share, underscoring their continued dominance in cash-based banking services.

In contrast, the digital payments landscape tells a different story. The total value of online (e-commerce) transactions in May 2025 was ₹1.32 lakh crore, slightly down from ₹1.43 lakh crore in March.

Private sector banks led the segment with a 73.75% share, though this marked a slight decrease from their 75.35% share in March.

Public sector banks, while still trailing, improved their position in the digital space, increasing their market share in online transactions from 18.84% in March to 20.44% in May.

Foreign banks contributed 5.31% to online transaction value, while payment banks and small finance banks accounted for just 0.47% and 0.02%, respectively.

The data indicates a clear dichotomy in the Indian banking landscape — with PSBs continuing to lead in legacy transaction methods and private banks excelling in digital channels.

However, the growing digital footprint of PSBs suggests early signs of a strategic shift toward e-commerce and online banking.

Industry experts believe this trend could intensify as PSBs accelerate their digital transformation initiatives and aim to close the gap with private sector counterparts in the fintech-driven economy.