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Time to act is now! PSBs are fast losing market share to private peers

The truth is - falling market share of state-run banks is not something many will want to comment on record

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Illustration by Binay Sinha

Raghu MohanAbhijit Lele Mumbai
We may be less than a decade away from state-run banks ceding their dominant market share to their private peers. Eight years ago, the former held 72 per cent of the banking systems’ assets; it now stands a tad below 60 per cent. During the same period, private banks hiked it to 32 per cent from about 19 per cent. 

The central bank — for the first time — had in its Report on Trend and Progress of Banking in India (T&P: 2018-19) highlighted the sharp fall in both the incremental and outstanding credit of state-run banks. In FY17, the share