PSU banks losing lead relationships to private banks, says study

SBI is the only outlier in this trend, which has moved faster and made more progress than other PSU banks

Public sector banks, weighed down by their respective non-performing assets (NPAs), are losing lead banking relationships with Indian corporate entities to their private counterparts, says a study conducted by Greenwich Associates, a banking consultant group.

“As of 2016, 20 per cent of the large Indian corporates participating in the Greenwich Associates Annual Corporate Banking Study said they used at least one public sector bank as a lead corporate bank. By 2018, that share had fallen to 15 per cent. The bulk of those relationships went to private sector banks”, says the study.

Further analysing the performance of individual banks, the study reveals