Private sector banks' share in loans rises to 36.5% in FY21

Surpass other bank groups in terms of loan growth

Helped by faster pace of credit growth, the share of Indian private banks in total credit rose to 36.5 per cent in the financial year ended March 2021 (FY21) from 35.4 per cent a year ago.

Private sector banks recorded higher loan growth compared to other bank groups. Their share in total credit was 24.8 per cent five years ago, the Reserve Bank of India said in a statement.

Private sector banks' loan growth moderated to 9.1 per cent in FY21, from 9.3 per cent in FY20. Public sector posted a loan growth of 3.6 per cent in FY21, down from 4.2 per cent in FY20. The lending by foreign banks shrunk by 3.3 per cent during 2020-21 as against growth of 7.2 per cent a year ago.

Overall growth of credit in India slowed down in FY21 to 5.6 per cent from 6.4 per cent in FY20 as the economy was hit hard by Covid-19 pandemic and lockdown imposed to contain its spread.

Bank branches in urban, semi-urban and rural areas recorded double-digit credit growth (YoY) in March 2021. The metropolitan branches, which accounted for 63 per cent of bank credit, recorded 1.4 per cent growth in credit, it added.