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Banks (Finance)

Nationalised Banks Dominate India's Scheduled Commercial Bank Credit Landscape

Strategic Insights

— 2 min read

In 2008-09, nationalised banks in India accounted for 50.5% of the total credit given out by scheduled commercial banks, standing at over Rs 1,436,769 crore (US$306.965 billion), according to the Indian Reserve Bank's report. This share increased from 48.8% in March 2008. The total credit of scheduled commercial banks in 2008-09 was Rs 28,47,713.12 crore. The State Bank of India (SBI) and its associates accounted for almost a quarter of the total credit, with an amount outstanding of Rs 6,57,255.04 crore or 23.1%. Private sector banks had an outstanding of Rs 5,19,137.69 crore or 18.2% of the total credit, while foreign banks' share decreased to 5.9% during 2008-09.

Key Takeaways:

  • Nationalised banks held 50.5% of the total credit in 2008-09, a significant increase from 48.8% in March 2008.
  • The total credit of scheduled commercial banks in 2008-09 reached Rs 28,47,713.12 crore.
  • The State Bank of India (SBI) and its associates accounted for 23.1% of the total credit, with an amount outstanding of Rs 6,57,255.04 crore.
  • Private sector banks held 18.2% of the total credit, with an amount outstanding of Rs 5,19,137.69 crore.
  • Foreign banks' share in the bank credit decreased to 5.9% in 2008-09 from 6.7% in 2007-08.
  • Regional rural banks accounted for 2.3% of the total credit, with an amount outstanding of Rs 66,828.91 crore.
  • Scheduled commercial banks had 1,100 crore credit accounts in 2008-09, with nationalised banks accounting for 32% of them.

Statistics:

  • Rs 1,436,769 crore (US$306.965 billion) - total credit by nationalised banks in 2008-09 (Source: Indian Reserve Bank).
  • 50.5% - share of nationalised banks in total credit (Source: Indian Reserve Bank).
  • 48.8% - share of nationalised banks in total credit in March 2008 (Source: Indian Reserve Bank).
  • Rs 28,47,713.12 crore - total credit of scheduled commercial banks in 2008-09 (Source: Indian Reserve Bank).
  • Rs 6,57,255.04 crore - amount outstanding from SBI and its associates in 2008-09 (Source: Indian Reserve Bank).
  • 23.1% - share of SBI and its associates in total credit (Source: Indian Reserve Bank).
  • Rs 5,19,137.69 crore - amount outstanding from private sector banks in 2008-09 (Source: Indian Reserve Bank).
  • 18.2% - share of private sector banks in total credit (Source: Indian Reserve Bank).

Sources:

  • Reserve Bank, 2009 - "Basic Statistical Returns of Scheduled Commercial Banks in India".
  • (PTI) - "Nationalised banks account for 50.5% of total credit".

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