The growth of private sector lenders has outpaced that of their peers and have managed to grab more market share, according to a Dun & Bradstreet report.
The report points out that the share of private banks increased to 20 per cent in FY15 from 19 per cent a year ago. The increase in market share was on account of 16.7 per cent year-on-year growth, compared with 8.4 per cent growth in public sector banks (PSBs) and 13.8 per cent recorded by foreign banks.
This came at a time when the overall credit growth in the industry had tapered off, thus impacting banks' earnings. In FY15, credit growth reduced to 9.7 per cent compared with 14.5 per cent a year ago. Though retail demand managed to grow, especially for private sector banks, it was the lack in corporate demand that led to a slowdown in bank credit.
