A Dun & Bradstreet report on 'India's top banks' has said that old-time private sector banks in India such as the Federal Bank, South Indian Bank and City Union Bank are losing their market share to new age banks such as ICICI Bank, HDFC Bank and Axis Bank, Business Standard has reported citing the Press Trust of India.
According to the report, the old-time private sector banks have been recording a growth of 7.1% in assets, 6% in deposits and 12% in advances while new age banks posted an average annual growth of 38.7% in assets, 38.8% in deposits and 39.9% in advances. The industry average growth was about 25% for deposits and 31% for advances.
However, the older private banks have registered a better growth in profits than their new age counterparts at an average of 30%.
The report has that the Indian banking sector remains fragmented, with the top 10 banks accounting for 65% and about 40 banks sharing 27% of the assets.
Dun & Bradstreet has claimed to have covered 80 scheduled commercial banks, including 28 public sector banks, 23 private sector banks and 29 foreign banks in the study.
The report has ranked ICICI Bank and SBI as the best banks in the private and public sectors respectively. Citibank has been declared as the best foreign sector bank, but Standard Chartered Bank has beaten it in terms of profitability.