In this era of Digital India, it is easy to think that banks would have become completely ‘paperless’ but the truth is that banks’ expenditure on stationery is still very high. According to Groww’s FY25 report, India’s 14 big banks together have spent a total of Rs 3,877 crore on stationery and printing in the last one year. This huge expenditure shows that even after the advent of digital technology, paper work or stationery remains a huge and urgent need for banks. The large network of bank branches and government legal regulations are the biggest reasons for this expenditure.
In the daily work of banks, stationery does not just mean pen and paper. This includes loan agreements, account opening forms, legal documents and many other important things which are necessary for the functioning of bank branches. Now let us see how much each bank has spent. State Bank of India has spent Rs 986.4 crore on stationery. HDFC Bank’s expenditure has been Rs 922.5 crore.
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Axis Bank has spent Rs 373.8 crore. ICICI Bank has shown stationery expenses of Rs 318.5 crore. Bank of Baroda has spent Rs 211.9 crore, Punjab National Bank Rs 173.8 crore and Kotak Mahindra Bank Rs 167.0 crore on stationery. Canara Bank’s expenditure has been Rs 165.9 crore. Union Bank of India has spent Rs 135.3 crore, ADFC First Bank Rs 122.7 crore, IndusInd Bank Rs 114.9 crore, Yes Bank Rs 70.0 crore, AU Small Finance Bank Rs 58.3 crore and Federal Bank Rs 56.2 crore on stationery and printing.
Why is stationery needed even in the digital age?
Nowadays most people send money through mobile apps, yet banks still need a lot of stationery. Many bank functions are still done by visiting branches. People living in villages and elderly customers still consider signing on paper and taking receipts more secure and reliable than online. Apart from this, due to government rules and audits, banks have to keep physical papers and files to keep each of their records safe. These legal requirements are such that banks cannot completely close them down even if they wanted to.
Mathematics of stationery expenses
This expenditure on stationery also affects the profits of banks. For big banks, this expense remains around 1% of their total profits. Some banks like ADFC First Bank have spent 8.05% of their profits on stationery. IndusInd Bank spent 4.46% of its profit on stationery. This expense of Yes Bank was 2.86% and that of AU Small Finance Bank was 2.77%.
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Axis and Federal Bank have spent 1.33% of their profits on stationery. This figure of State Bank of India is 1.22% and that of HDFC Bank is 1.26%. Bank of Baroda spent 1.02%, Punjab National Bank and Canara Bank 0.94%, Kotak Mahindra Bank and Union Bank of India 0.75% and ICICI Bank 0.58% of their profits on stationery. These banks are expanding their branches in new areas and want to add more customers, hence they are paying more attention to the physical work and facilities of the branch.
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