SBI deposit growth slows down

The State Bank of India (SBI) group floundered on deposit mobilisation in the first quarter ended June 30, 2006, contrary to the trend witnessed by the other public sector banks and private sector banks.

The year-on-year growth in deposits of the country's largest banking group slowed to 12.5 per cent at Rs 4,96,382 crore as on June 30, 2006, from 15.5 per cent as on March 31, 2006, according to quarterly statistics on deposits and credit of scheduled commercial banks.

The deposits of nationalised banks grew by 21.9 per cent as on June 30, 2006 against an increase of 16.2 per cent as on March 31, 2006.

Private sector banks' deposits base as on June 30, 2006 was 40 per cent, up from 28.1 per cent at the end of 2005-06. Foreign banks' deposits rose by a sharp 43.1 per cent at the end of the first quarter of 2006-07, but the increase was marginally slower from 44.9 per cent as on March 31, 2006.

As on June 30, 2006, the total deposits of nationalised banks stood at Rs 10,54,021 crore, private sector banks Rs 4,33,483 crore, foreign banks Rs 1,18,358 crore and regional rural banks Rs 69,832 crore.

Bank branches with deposits of Rs10 crore or more accounted for 51.4 per cent of the total network of over 69,000 branches and a whopping 92.9 per cent of Rs 21,72,046 crore of aggregate deposits as on June 30, 2006.

These branches also accounted for 90.4 per cent of the total bank credit of Rs 15,55,936 crore. Bank branches which extended credit of Rs10 crore or more accounted for 27.6 per cent of the total branch network.

These offices together accounted for 87.5 per cent of total bank credit whereas their share in the aggregate deposits was 69.4 per cent.

The top hundred centres, out of 34,513 banked centres, arranged according to the size of deposits accounted for 67.7 per cent of the total deposits and the top hundred centres arranged according to the size of bank credit accounted for 76.6 per cent of total bank credit.

Aggregate deposits of top hundred centres grew at 27.7 per cent in June 2006 from a year earlier. The annual growth a year earlier was 18 per cent. Growth rate of gross bank credit of top hundred centres was at 34.4 per cent in June 2006 over June 2005, compared to 32.9 per cent growth recorded in June 2005.

Nationalised banks, as a group, accounted for 48.5 per cent of the aggregate deposits, while State Bank of India and its Associates accounted for 22.9 per cent.

The shares of private sector banks, foreign banks and regional rural banks in aggregate deposits were 20 per cent, 5.4 per cent and 3.2 per cent, respectively.

As regards gross bank credit, nationalised banks held the maximum share of 47.6 per cent in the total bank credit followed by SBI and its associates at 22.6 per cent and private sector banks at 20.3 per cent. Foreign banks and RRBs had relatively lower shares in the total bank credit at 6.9 per cent and 2.6 per cent, respectively.