PSBs lag behind private banks in deposit growth

Font Size

Print

Feedback

Email

Discuss

Related Articles

HDFC Bank cuts rates for used carsUnion Bank starts auditing branchesPvt banks pip public peers in NPAsBanks likely to retain home loan rates

: Deposits of public sector banks (PSBs) in percentage terms over a period of 5 years has grown at a lower rate between 2002-03 to 2006-07, vis-à-vis an increase in deposits of private banks during the same period.

The deposit figure of 27 PSBs was a compound annual growth rate (CAGR) of 15.95%, while the total deposit of 18 private banks increased by 32.28% in the said period. In actual value terms, the total deposits of PSBs steadily increased by 80.8% from Rs 10,79,164 crore in 2002-03 to Rs 19,50,846 crore in 2006-07. On the other hand, the total deposit of private banks also steadily moved up by 206.1% from Rs 1,73,672 crore in 2002-03 to Rs 5,31,703 crore in 2006-07.

In PSBs, it showed 13.92% in 2003-04, when the total deposit of private banks grew 31.66% in simple terms. When the total deposit of PSBs showed a growth of 15.61% in 2004-05, the total deposits of private banks increased by 26.47%. In the year 2005-06, when the total deposits of PSBs grew 12.31%, the total deposits of private banks increased by 39.6%. In 2006-07, the total deposit of PSBs registered a growth of 22.19%, the total deposit of private banks grew by 31.69%.

Among 27 PSBs, the highest CAGR in deposit was seen in Syndicate Bank (26.55%), followed by State Bank of Mysore (25.02%), and Allahabad Bank (23.66%). The total deposit of Syndicate Bank increased by 156.4% to Rs 78,634 crore in 2006-07 from the level of Rs 30,661 crore in 2002-03.