Old private banks losing to new players | india | Hindustan Times
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Old private banks losing to new players

However, old-time private sector banks continue to fare better in the growth of net profits naming ICICI Bank and SBI as the best banks in their respective categories.

india Updated: Mar 12, 2008 21:27 IST

The private banking segment is witnessing a paradigm shift in India, a study has found.

Research firm Dun & Bradstreet's report on 'India's Top Banks' says old private banks such as Federal Bank, South Indian Bank and City Union Bank are losing out in market share to their modern counterparts.

However, old-time private sector banks continue to fare better in the growth of net profits, it said, while naming ICICI Bank and SBI as the best banks in their respective categories.

The D&B report has found that public sector banks accounted for 74 per cent of total deposits, 73 per cent of total advances and 64 per cent of aggregate net profits amongst scheduled commercial banks.

On the other hand, the share of new age private sector banks in these areas was in the range of 15-17 per cent, it said.

The D&B report said the annual growth rate of old-time private sector banks stood at 7.1 per cent in assets, six per cent in deposits and 12 per cent in advances.

Banks such as Federal Bank, South Indian Bank, City Union Bank and Karnataka Bank come under old-time private sector banks, while ICICI Bank, HDFC Bank and Axis Bank are the new-age banks in this space.

New age private sector banks dominated growth league tables with an average y-o-y growth in assets at 38.7 per cent, deposits at 38.8 per cent and advances at 39.9 per cent, the report said.

However, old-time private sector banks fared better in terms of profitability which stood at an average 30 per cent.

The industry average growth was about 25 per cent for deposits and 31 per cent for advances, the report said.