Assets of public sector banks (PSBs), in percentage terms, between fiscal years 2003 and 2007, have grown at a much lower pace, when compared with the rate amongst private banks.
Total assets of 22 PSBs showed a compounded annual growth rate (CAGR) of 15.99% during the period, as against the 29.41% of 17 private banks, a Financial Express study showed.
In actual value terms, total assets of PSBs steadily increased by 81% from Rs 12,36,063 crore in 2002-03 to Rs 22,37,169 crore in 2006-07. On the other hand, total assets of private banks grew much higher by 180.5% and from Rs 2,55,158 crore to Rs 7,15,671 crore during the same period.
The simple growth in PSBs? assets was lower in all the years as compared to the growth in the total asset of private banks.
In PSBs, the growth was 13.86% in 2003-04, 15.65% in 2005, 13.32% in 2006 and 21.28% in 2007 whereas for private banks the rate was at 24.18%. 24.65%, 36.42% and 32.80% respectively.
Among the 22 PSBs, the highest CAGR in assets was in Syndicate Bank (26.89%), followed by Allahabad Bank (24.63%) and State Bank of Mysore (24.05%). The total assets of Syndicate Bank increased by 159.3% to Rs 89,277 crore in 2006-07 from the level of Rs 34,435 crore in 2002-03. The lowest CAGR was witnessed in the case of State Bank of India at 10.79%, followed by Bank of Maharashtra at 11.85%.
In the case of private banks, the highest CAGR in assets was noted in Kotak Mahindra Bank at 74.20%, followed by Centurion Bank of Punjab at 55.31% and Axis Bank at 39.04%. Total assets of Kotak Mahindra Bank increased from Rs 2,162 crore in 2002-03 to Rs 19,916 crore in 2006-07. The lowest CAGR was seen in Development Credit Bank (4.61%), followed by Dhanalakshmi Bank (13.11%) and ING Vysya Bank (13.90%).