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| The previous financial year was characterised by strong earnings with all major income categories showing significant improvements for the 288 SCBs. However, their balance sheet size recorded slower growth compared with the previous year. |
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| Net profit of these banks jumped by 47.52 per cent to Rs 17,077 crore (Rs 11,576 crore in 2001-02). |
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| "Notwithstanding some dampening of sentiments during the last quarter of 2002-03, the banking industry as a whole witnessed a sharp improvement in performance, driven largely by containment in interest expense," the report said. |
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| Record low interest rates continued to drive the retail and housing segments, boosting both lending and fee-based income of banks. |
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| The significant improvement in the performance of SCBs masks the wide variation in performance across bank groups. |
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| For example, increase in income was the lowest for old private sector banks, owing to a modest increase in interest income. |
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| Foreign banks, on the other hand, experienced a decline in both income and expenses, with decline in the latter outpacing the former. |
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| Taking advantage of the easy liquidity conditions, public sector banks contained their expenses within reasonable levels. |
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| Interest income of these SCBs was up by 10.83 per cent to Rs 1,40,718 crore (Rs 1,26,958 crore) and other income rose by 31.49 per cent to Rs 31,656 crore (Rs 24,074 crore). |
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| Interest expenses edged up 6.95 per cent to Rs 93,607 crore (Rs 87,516 crore) and operating expenses increased by 13.08 per cent to Rs 38,085 crore (Rs 33,679 crore). |
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| SCBs total assets as of March 2003 stood at Rs 16,98,916 crore (Rs 15,36,425 crore). The share of government paper in total assets continued to climb in response to the rally in the gilts market. |
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| The size of bank assets of an economy is a measure of financial maturity. The size of bank assets in relation to gross domestic product (GDP) has important implications for financial development of any economy. |
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| "The ratio of bank assets to GDP at market prices, at about 70 per cent for India, compares favourably with those of developing countries in Asia and Latin America," the RBI said. |
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| The ratio of bank assets to GDP at market prices for Argentina is 54 per cent, Brazil (55 per cent), Mexico (30 per cent), Thailand (117 per cent), Malaysia (166 per cent), the Philippines (91 per cent), UK (311 per cent) and US (66 per cent). |
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