Though the investments increased in absolute terms, if the public sector banks' investments are seen as part of their assets, the banks invested more than in the previous year in terms of investment-to-assets ratio, which increased from 34.81 per cent in 1997-98 to 35.93 per cent in 1998-99. Ten of the public banks - Andhra Bank, Corporation Bank, Oriental Bank of Commerce, State Bank of B&J, State Bank of Hyderabad, State Bank of India, State Bank of Indore, State Bank of Saurashtra, State Bank of Travancore and Union Bank of India - recorded more than 25 per cent growth in investments over the previous year. The only one bank which recorded less than 5 per cent growth was the Syndicate Bank.

Ten public sector banks - Bank of Baroda (Rs 1,403 crore), Bank of India (Rs 1,655 crore), Central Bank of India (Rs 1,672 crore), Oriental Bank of Commerce (Rs 1,104 crore), Punjab National Bank (Rs 2,227 crore), State Bank of Hyderabad (Rs 1,807 crore), State Bank of India (Rs 12,575 crore), State Bank of Travancore (Rs 1,113 crore), Union Bank of India (Rs 2,356 crore) and United Bank of India (Rs 1,258 crore) - recorded an increase of more than Rs 1,000 crore in investments in Government securities. Vijaya Bank's investments in Government securities declined during the year.

Twenty two banks disinvested part of their other approved securities investments. Notable among them are Canara Bank, Central Bank of India, Indian Bank, Punjab National Bank, State Bank of India and UCO Bank.

Regarding investments in bonds and debentures, 10 banks reported an increase of more than Rs 500 crore. Four banks - Central Bank of India (Rs 916 crore), State Bank of India (Rs 2,526 crore), Syndicate Bank (Rs 856 crore) and Union Bank of India (Rs 764 crore) recorded an increase of more than Rs 700 crore.

As regards investments in shares, four banks reported an increase of more than Rs 40 crore. The State Bank of India reported an increase of Rs 320 crore, while 16 other banks disinvested a part of their shares investments during the year. Significant among them are Bank of India, Central Bank of India, Bank of Baroda, Dena Bank, State Bank of B&J, UCO Bank and Vijaya Bank.

In its latest monetary & credit policy, the Reserve Bank of India (RBI) decided to introduce new method for valuation of investments in approved securities which to come into place by April 2000 in three categories - `Held for trading,' `Available for sale' and `Permanent.'

The top five banks in terms of investments as a percentage of assets in 1998-99 were United Bank of India (51.65 per cent), Bank of Maharashtra (46.67 per cent), State Bank of Hyderabad (44.82 per cent), Central Bank of India (43.20 per cent) and Andhra Bank (42.85 per cent). In 1997-98, the corresponding positions were occupied by the United Bank of India (49.42 per cent), Bank of Maharashtra (44.31 per cent), Andhra Bank (42.76 per cent), Allahabad Bank (42.44 per cent) and Central Bank of India (41.83 per cent).

Total investments of United Bank of India increased by 23.9 per cent from Rs 7,176 crore at the end of March 1998 to Rs 8,891 crore at the end of March 1999. Investments in the Government securities amounted to Rs 6,479 crore at the end of March 1999 against Rs 5,221 crore at the end of March 1998. In the case of Bank of Maharashtra, total investments increased from Rs 4,722 crore as on March 31, 1998, to Rs 5,687 crore as on March 31, 1999. The ratio of investments to deposits as on March 31, 1999 is at 52.03 per cent as compared to 51.70 per cent of the previous year.

The Government securities in the total investment stood at Rs 4,157 crore as on March 31, 1999, forming 73.10 per cent of the total investments.

Twenty public sector banks showed a rise in the ratio (investment to assets) in 1998-99. Significant among them are State Bank of Hyderabad (25.38 per cent in 1997-98 to 44.82 per cent in 1998-99), State Bank of B&J (33.17 per cent to 37.17 per cent), State Bank of Travancore (36.14 per cent to 40.17 per cent) and Union Bank of India (35.74 per cent to 38.87 per cent).

Union Bank of India's investments increased from Rs 9,205 crore as on March 31, 1998, to Rs 12,140 crore as on March 31, 1999, registering a rise of Rs 2,935 crore (31.88 per cent). The major component of growth was investments in Government securities and bond and debentures, which accounted for a rise of Rs 3,120 crore.

On the other hand, significant declines in the ratio were witnessed in the case of Syndicate Bank (39.33 per cent in March 31, 1998 to 36.20 per cent in March 31, 1999), Punjab & Sind Bank (41.58 per cent to 40.26 per cent) and Allahabad Bank (42.44 per cent to 41.10 per cent).