PSU Banks Continue To Lead In ATM Transactions, Private Banks Dominates In Digital Space: Report

The public sector banks increased their market share in online transactions from 18.84% in March to 20.44% in May, reflecting a modest improvement in their presence in the e-commerce space.

Image Credit: Freepik

New Delhi: Public sector banks (PSBs) continue to dominate in terms of the value of transactions made through ATMs and cash deposit machines (CRMs), while private sector banks maintain a strong lead in online (e-commerce) transaction value, according to data from a report by Indus Equity.

The report noted that the total value of transactions through ATMs and CRMs stood at ₹2.45 lakh crore in May 2025. Of this, public sector banks accounted for 67.52% of the total ATM and CRM transaction value. Private sector banks held a share of 30.35%, while small finance banks and others accounted for 1.33% and 0.79%, respectively.

However, compared to March 2025—when the total ATM and CRM transaction value was ₹2.63 lakh crore—there has been a decline in the overall transaction value in May.  In March, public sector banks had a slightly lower share of 67.03%, while private sector banks had a higher share of 30.78%. This suggests that public sector banks increased their market share in May, while private banks saw a minor dip.

On the other hand, the value of transactions through online platforms, especially e-commerce, remained heavily dominated by private sector banks. In May 2025, the total value of online (e-commerce) transactions was ₹1.32 lakh crore. 

Of this, private sector banks accounted for almost three-fourths of the transaction value, holding a 73.75% market share. Public sector banks lagged behind with a 20.44% share in online transactions. Foreign banks contributed 5.31%, while payment banks and small finance banks held a negligible share of 0.47% and 0.02%, respectively.

When compared to March 2025 data, the total online transaction value declined slightly from ₹1.43 lakh crore to ₹1.32 lakh crore in May. The share of private sector banks also dipped from 75.35% to 73.75%, though they continued to dominate the segment. 

Interestingly, public sector banks increased their market share in online transactions from 18.84% in March to 20.44% in May, reflecting a modest improvement in their presence in the e-commerce space.

Overall, the data indicates a clear trend: public sector banks continue to lead in traditional cash-based transactions through ATMs, while private sector banks maintain a stronghold in the growing digital payments market driven by e-commerce platforms.