The number of bank branches in aggregate are 127,000, but the number of inhabited villages are 600,000, resulting in poor financial inclusion
The banking industry, for decades, has been granted special privileges by society. It was allowed to put in barely 10% of its own capital and borrow the rest. It was given special treatment by the central bank, whereby it could always be assured of liquidity. It was a club of a few, as not many were granted this privilege, thereby keeping competition low.