Drivers of Bank Penetration: A Bankers’ Perspective

  • Namrata Sandhu, Sandhir Sharma, Dilpreet Singh


Taking India as a case in point, the current study aims to identify the factors that drive bank penetration. The empirical setting of the study was 34 (22 public sector and 12 private sector) Indian banks. Data for the study were collected from senior bank officials (n=404) engaged in the development and/or implementation of strategies. Multivariate data analysis techniques were used for data analysis. A model identifying the drivers of bank penetration was developed and tested. Exploratory factor analysis revealed seven factors that drive bank penetration: supply side innovations, growth and profit objective, social responsibility, competition, demographic dividend, regulatory mandates, and cost effective solutions. Results of multiple regression analysis showed that all these factors except social responsibility were significant in the overall model. Implications of the study are discussed from a policy perspective. The value of this study lies in its ability to push the bank penetration agenda of the policy makers.

How to Cite
Namrata Sandhu, Sandhir Sharma, Dilpreet Singh. (2020). Drivers of Bank Penetration: A Bankers’ Perspective. International Journal of Advanced Science and Technology, 29(11s), 1017 - 1038. Retrieved from