F00-Indian Economy

Comparison Performance of Public Sector Banks as Against Private Sector Bank 2022 as against 2017 for Maharashtra
During the period Branch network of PSB is reduced by 7.82% as against growth in Private Banks by 66.16%.
In case of PSB growth in business is 36.99% while in Pvt Sector 129.08%.
Market Share of PSB has gone down from 69.53% to 57.84% while in case of Pvt Sector it has grown by 26.99% to 37.76%.
Growth in advances in PSB is 23.68% while in Pvt Sector 145.23%.
Growth in Deposits PSB 51.78% Pvt 118.07%
Credit Deposit Ratio PSB has gone down from 111.13% to 90.55% while Pvt has gone up from 75.92% to 85.38%.
This is the period during which banks were put under Prompt Corrective Actions since were in losses due to mounting Non Performing Assets in which major share was of corporates. Thus government had to infuse the capital by providing in the budget i.e. out of the taxes paid by the common man. In the process government asked PSBs to sign the MoU vide which restrictions were put on PSBs such as ban on expansion & recruitment. Thus banking space was made available to Private sector to grow. This is the period during which large scale mergers took place in Public Sector Banks & consequently branches were closed in the name of merger & consequently banking space was made available to Pvt Sector banks & Small Finance Banks. The present Banking Scenerio is the manifistation of misdirected policies. It is the common man who is required to pay the cost for Corporate Debt.
Devidas Tuljapurkar General Secretary MSBEF This email address is being protected from spambots. You need JavaScript enabled to view it.