Digital transformation has significantly reshaped the Indian banking sector, influencing service delivery, customer engagement, and operational efficiency. The rapid expansion of digital payment systems, particularly mobile banking and the Unified Payments Interface (UPI), has compelled both public and private sector banks to strengthen their digital capabilities. This study examines the extent of digital banking adoption, compares digital transaction performance, and assesses the impact of digital transformation on customer reach and operational efficiency in State Bank of India (SBI) and HDFC Bank over the last three years. The study is based on secondary data collected from Reserve Bank of India (RBI) reports, National Payments Corporation of India (NPCI) statistics, and annual reports of the selected banks. Descriptive and comparative analyses are employed to evaluate trends in UPI transactions, mobile banking users, and digital market share. The findings reveal that SBI leads in terms of digital transaction volume and UPI market share due to its extensive customer base and nationwide presence, while HDFC Bank demonstrates consistent digital growth supported by technological efficiency and customer-centric digital services. The study concludes that digital transformation has positively influenced customer reach and operational efficiency in both banks, though their digital strategies differ in scale and focus. The findings highlight the strategic importance of digital banking in enhancing competitiveness and sustainability in the Indian banking sector.
Karigoleshwar et al. (Wed,) studied this question.