I. Bank-related

1. All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are scheduled banks. These banks comprise Scheduled Commercial Banks and Scheduled Cooperative Banks.

2. Scheduled Commercial Banks in India are categorised into five different groups according to their ownership and / or nature of operation. These bank groups are (i) State Bank of India and its associates, (ii) Nationalised Banks, (iii) Regional Rural Banks, (iv) Foreign Banks and (v) Other Indian Scheduled Commercial Banks (in the private sector).

3. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Co-operative Banks.

4. Regional Rural Banks and Scheduled Co-operative Banks are excluded in bank-wise tables and their summary tables at bank group level. However, details of Regional Rural Banks and Scheduled Co-operative Banks as groups are presented in Tables 2.1 and 2.2.

5. During the year 2006-07, the following changes have taken place in the commercial banking system:

(I) The name of “Chohung Bank” has been changed to “Shinhan Bank” in the Second Schedule to the Reserve Bank of India Act, 1934 with effect from August 12, 2006.

(II) “The Ganesh Bank of Kurundwad Ltd.” has been merged with “Federal Bank Ltd.” with effect
from September 2, 2006.

(III) “United Western Bank” has been merged with “IDBI Ltd.” with effect from October 3, 2006.

(IV) “The Bharat Overseas Bank Ltd.” has been merged with “Indian Overseas Bank” with effect from March 31, 2007.

(V) The name of “UTI Bank Ltd.” has been changed to “Axis Bank Ltd.” with effect from July 30, 2007.

(VI) There were 133 Regional Rural Banks as on March 31, 2006. However due to amalgamation, number of such banks came down to 96 as on March 31, 2007. The detailed list of amalgamated Regional Rural Banks as on August 31, 2007 is given in Table B16.
These changes are reflected in the tables where individual bank’s data are presented.

6. In the bank group-wise classification, IDBI Ltd. has been included in Nationalised Banks.

7. Data relating to Ganesh Bank of Kurundwad Limited for the year 2005-06 is as on January 7, 2006. However, since 'Notes on Account' was not provided in the Balance Sheet as on January 7, 2006, the same has been repeated from the Balance Sheet for 2005-06.

8. Population groups of the banked centres presented in this volume are based on the 2001 census. The population groups are defined as under:

(i) ‘Rural’ group includes all centres with population of less than 10,000

(ii) ‘Semi-urban’ group includes centres with population of 10,000 and above but less than 1 lakh (iii) ‘Urban’ group includes centres with population of 1 lakh and above but less than 10 lakhs (iv) ‘Metropolitan’ group includes centres with population of 10 lakhs and more.

II. Table-related

Tables 2.1 and 2.2 — Data are compiled from the fortnightly “Form-A” returns submitted by the Scheduled Commercial Banks under Section 42(2) of the Reserve Bank of India Act, 1934 and relate to their business in India. Inter-bank deposits / assets of maturity of 15 days and above and up to 1 year are excluded. Data on balances with the Reserve Bank of India are obtained from Weekly Statement of Affairs of the Reserve Bank of India, Department of Government and Bank Accounts.

Tables 2.3, 2.4, 2.5, 4.1, 5.1, 5.2, 5.3 — The deposit figures reported in Tables 2.3, 2.4, 2.5 and 4.1 exclude inter-bank deposits and, therefore, their coverage is different from that of ‘deposits’ reported in table 3.1. The bank credit data in tables 2.3, 2.4, 2.5, 5.1, 5.2 and 5.3 comprise term loans, cash credit, overdrafts and bills purchased and discounted. In addition, the data on bank credit in tables 5.1, 5.2 and 5.3 also include dues from banks.

Tables 2.6 and B11 — Selected financial ratios of Scheduled Commercial Banks (excluding RRBs) are obtained / calculated from the published annual accounts of banks and relate to the year ended March 31 of 2006 and 2007. The ratios 21 and 30 to 35 viz., “return on assets”, “business (deposits plus advances) per employee”, “profit per employee”, “capital adequacy ratio”, “capital adequacy ratio – Tier I”, “capital adequacy ratio- Tier II” and “ratio of net NPAs to net advances” are obtained from “notes on accounts” of published annual accounts of individual banks. They are not aggregated at the bank-group level.

Other ratios are calculated using the following concepts / definitions.

1. Definitions of the concepts used in the ratios are as follow:

(i) Cash in cash-deposit ratio includes cash in hand and balances with RBI

(ii) Investments in investment-deposit ratio represent total investments including investments in non-approved securities

(iii) Net interest margin is defined as the total interest earned less total interest paid (iv) Intermediation cost is defined as total operating expenses (v) Wage bills is defined as payments to and provisions for employees (PPE)

(vi) Operating profit is defined as total earnings less total expenses, excluding provisions and contingencies and

(vii) Burden is defined as the total non-interest expenses less total non-interest income.

2. Items like capital, reserves, deposits, borrowings, advances, investments and assets / liabilities used to compute various financial earnings / expenses ratios (Sr. No. 11 to 29) are averages for the two relevant years.