Govt banks, barring SBI group, increase market share

The government banks increased their market share both in credit and deposit in 2010 as compared to the previous year while State Bank of India (SBI) group’s market share in deposits eroded during the period.

According to latest data released by the Reserve Bank of India today, government banks, barring the SBI group, accounted for 51.9 per cent of the total deposits in the banking system as on March 2010 as compared with 49.5 per cent as on March 2009. In advances, nationalised banks’ market share increased from 50.5 per cent to 52 per cent.

SBI and its six associate banks accounted for 24.1 per cent of the deposit market in 2009, which has come down to 22.5 per cent in 2010. In loans, SBI group’s share remained unchanged at 23.1 per cent.

SBI group experienced single deposit growth of 8.9 per cent in 2010 as compared with 22.6 per cent in case of all other government banks and 16.9 per cent for the entire banking sector. In advances, the SBI group’s growth was 17.3 per cent, as compared with 20.6 per cent of nationalised banks and 17.1 per cent of the industry.

Foreign banks’ market share in advances declined from 5.9 per cent to 4.9 per cent in 2010, while in deposits, their market share marginally increased to 5.2 per cent from five per cent. Other commercial banks, a large part of which are private sector banks, also experienced declining market shares in both advances and deposits.