SBI Group constantly losing market share in deposits and advances

Posted By: Religare
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SBI Group constantly losing market share
According to the RBI data for the quarter ended December 2010, the State Bank of India Group has been constantly losing market share in deposits and advances in the last three consecutive quarters.

The decrease in market share of deposit is on the grounds that it has avoided bulk deposits. However, it chose to raise money using retail bonds and private placement bonds. SBI"s market share in deposits stands at 22.1%, the lowest in 2010-11.

The market share in advances stands at 22.7% which is the lowest since June, 2006. The bank has lost the market share to private banks. These banks increased their market share to 5.1% for the quarter ended December, 2010 compared to 4.5% for the quarter ended September, 2010. The share of foreign banks has more or less stayed stable.

Alternately, if we compare the year-on-year picture, public sector banks have raised their market share in deposits to 52.2% against 50.9% in the previous year. In case of advances, their market share has reached 51.6% compared to 50.6% in the previous year.

The rising concern of the credit-to-deposit (CD) ratio stands as a major challenge to RBI. The Central Bank of the country has asked the commercial banks to reduce lending. This ratio stood at 76.5% for scheduled commercial banks against 71.1% a year ago. For the foreign banks, it was 80.3%.

Read more about: sbi, bank, bse, nse
Story first published: Monday, May 23, 2011, 9:30 [IST]
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