Net interest income, which means the spread or differential between interest earned on deployment and interest expended on deposits, for the banking industry went up from 2.73 per cent 1999-00 to 2.84 per cent in 2000-01.
The spread as a percentage of total assets for foreign banks dipped by 18 basis points to 3.64 per cent during the fiscal even as it went up for the industry as a whole. For public banks, the ratio increased from 2.70 per cent to 2.84 per cent. As far as private banks are concerned, it went up from 2.16 per cent to 2.33 per cent.
In the case of nationalised banks, the ratio went up from 2.66 per cent to 2.90 per cent, while in the case of State Bank of India (SBI) and its associates it remained unchanged at 2.76 per cent. Among public banks, the spread was highest for State Bank of Patiala at 4.22 per cent, while it was lowest for Indian Overseas Bank at 1.84 per cent. For SBI, the ratio was at 2.61 per cent in 2000-01 -- marginally down from 2.65 per cent earned in the previous financial year.
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For new private banks, spread as a percentage of total assets increased from 1.95 per cent in 1999-2000 to 2.14 per cent in the last fiscal. In case of old private sector banks the ratio made an improvement to 2.51 per cent in 2000-01 from 2.33 per cent in the fiscal before. Among private banks in 2000-01, the spread was highest at 3.80 per cent for Nainital Bank. Benares State Bank earned the lowest spread at 0.90 per cent. Spread of the new private sector UTI Bank was also low at 0.91 per cent.
In the group of foreign banks, The Toronto Dominion Bank earned the highest spread of 11.52 per cent in 2000-01. For Oman International Bank SAOG, the spread was negative at 0.51 per cent.