Developments in Commercial Banking (Part 1 of 5)

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Developments in Commercial Banking (Part 1 of 5)

ChapterII

1	RBI Standing Liquidity Facilities
2	Assets and Liabilities of Scheduled Commercial Banks
3	Financial Performance of Scheduled Commercial Banks
4	Non-performing Assets
5	Capital Adequacy
6	Indian Banks’ Branches Abroad
7	Foreign Banks in India
8	Regional Rural Banks
9	Local Area Banks
10	Regional Spread of Banking
11	Interest Rates of Scheduled Commercial Banks
12	Diversification in Banking Activities
13	Developments in Payment and Settlement Systems
14	Developments in Technology for Banking
15	Priority Sector Lending
16	Banks’ Liquidations and Amalgamations/Mergers
17	Relaxations to Trade and Industry in Jammu & Kashmir
18	Miscellaneous Developments

The Indian banking system continued to respond pro-actively to the challenges in its operating environment during the year 2001-02. There was a significant improvement in the performance of the commercial banking system, measured in terms of both operating as well as net profits. As at end-March 2002, 97 commercial banks, 196 Regional Rural Banks, 52 scheduled urban co-operative banks and 16 scheduled state co-operative banks were operating in India as scheduled banks (Chart II.1). Simultaneously, in view of the growing concerns about financial stability, prudential norms have been gradually tightened on par with international best practices. Banks have been also accorded greater operational flexibility in conducting their business. As part of the process, commercial banks have adopted several initiatives to strengthen their business practices, including, among others, greater product sophistication, increased customer orientation, improved risk-management, particularly credit risk management techniques, updated management information systems, greater focus on electronic banking channels and diversification into newer business areas. The salient policy measures pertaining to commercial banks are presented in the Annex.

2.2 The net profits of Scheduled Commercial Banks (SCBs), excluding Regional Rural Banks (RRBs), witnessed a noticeable upturn from Rs.6,403 crore in 2000-01 to Rs.11,572 crore in 2001-02 (excluding the impact of the merger, net profits stood at Rs.11,564 crore in 2001-02). The improvement in net profits, notwithstanding increased provisions and contingencies, was largely due to increased profit from treasury management operations in the soft interest rate scenario and the containment in operating expenses. While income of SCBs witnessed an increase of 14.4 per cent, driven largely by 'other income', the expenditure was, by and large, contained on account of the lower operating expenses, resulting from the decline in wage costs (Table II.1).

Table II.1: Bank Group-wise Important Financial Indicators

(Amount in Rs. crore)

Year	Operating	Net		Income	Interest	Other	Expendi-	Interest	Operating		Provisions	Spread
	Profit	Profit			Income	Income	ture	Expended	Expenses		& Contin-	(NII)
	(3+11)	(4-7)		(5+6)			(8+9+11)				gencies
									Total	Of which
										Wage Bill

1	2	3		4	5	6	7	8	9	10	11	12

Scheduled Commercial Banks
1999-2000	18,306.57	7,245.25		1,14,930.47	99,183.88	15,746.59	1,07,685.22	69,040.58	27,583.32	18,442.49	11,061.32	30,143.30
	(1.66)	(0.66)		(10.40)	(8.97)	(1.42)	(9.74)	(6.25)	(2.50)	(1.67)	(1.00)	(2.73)
2000-01	19,756.78	6,403.48		1,32,075.67	1,15,091.13	16,984.54	1,25,672.19	78,140.76	34,178.13	23,218.33	13,353.30	36,950.37
	(1.53)	(0.49)		(10.20)	(8.88)	(1.32)	(9.70)	(6.03)	(2.64)	(1.79)	(1.03)	(2.85)
2001-02	29,814.20	11,572.46	#	1,51,026.08	1,26,969.92	24,056.16	1,39,453.62	87,515.68	33,696.20	21,781.05	18,241.74	39,454.24
Public Sector Banks
1999-2000	13,042.29	5,116.18		90,911.01	79,413.68	11,497.33	85,794.83	55,374.47	22,494.25	16,394.67	7,926.11	24,039.21
	(1.46)	(0.57)		(10.21)	(8.92)	(1.29)	(9.63)	(6.22)	(2.53)	(1.84)	(0.89)	(2.70)

2000-01	13,801.68	4,316.94		1,03,499.36	91,129.44	12,369.92	99,182.42	61,693.19	28,004.49	20,929.17	9,484.74	29,436.25
	(1.34)	(0.42)		(10.05)	(8.85)	(1.20)	(9.63)	(5.99)	(2.72)	(2.03)	(0.92)	(2.86)
2001-02	21,672.93	8,301.24		1,17,248.75	1,00,721.54	16,527.21	1,08,947.51	69,153.77	26,422.05	19,045.38	13,371.69	31,567.77
	(1.88)	(0.72)		(10.14)	(8.71)	(1.43)	(9.43)	(5.98)	(2.29)	(1.65)	(1.16)	(2.73)
Nationalised Banks
1999-2000	7,203.15	2,437.00		56,896.43	50,234.01	6,662.42	54,459.43	35,477.41	14,215.87	10,468.28	4,766.15	14,756.60
	(1.30)	(0.44)		(10.27)	(9.06)	(1.20)	(9.83)	(6.40)	(2.57)	(1.89)	(0.86)	(2.66)
2000-01	8,062.06	2,095.09		64,126.52	56,977.36	7,149.16	62,031.43	38,789.64	17,274.82	13,142.78	5,966.97	18,187.72
	(1.29)	(0.33)		(10.23)	(9.09)	(1.14)	(9.90)	(6.19)	(2.76)	(2.10)	(0.95)	(2.90)
2001-02	12,953.25	4,851.75		72,485.95	61,975.51	10,510.44	67,634.20	42,597.86	16,934.84	12,316.55	8,101.50	19,377.65
	(1.83)	(0.69)		(10.26)	(8.78)	(1.48)	(9.58)	(6.03)	(2.40)	(1.74)	(1.15)	(2.74)
State Bank Group
1999-2000	5,839.14	2,679.18		34,014.58	29,179.67	4,834.91	31,335.40	19,897.06	8,278.38	5,926.39	3,159.96	9,282.61
	(1.74)	(0.80)		(10.11)	(8.67)	(1.44)	(9.32)	(5.91)	(2.46)	(1.76)	(0.94)	(2.76)
2000-01	5,739.62	2,221.85		39,372.84	34,152.08	5,220.76	37,150.99	22,903.55	10,729.67	7,786.39	3,517.77	11,248.53
	(1.42)	(0.55)		(9.77)	(8.47)	(1.30)	(9.21)	(5.68)	(2.66)	(1.93)	(0.87)	(2.79)
2001-02	8,719.68	3,449.49		44,762.80	38,746.03	6,016.77	41,313.31	26,555.91	9,487.21	6,728.83	5,270.19	12,190.12
	(1.94)	(0.77)		(9.96)	(8.62)	(1.34)	(9.19)	(5.91)	(2.11)	(1.50)	(1.17)	(2.71)

Table II.1: Bank Group-wise Important Financial Indicators (Contd.)

												(Amount in Rs. crore)

Year				Operating	Net		Income	Interest	Other	Expendi-	Interest	Operating		Provisions	Spread
				Profit	Profit			Income	Income	ture	Expended	Expenses		& Contin-	(NII)
				(3+11)	(4-7)		(5+6)			(8+9+11)				gencies
												Total	Of which
													Wage Bill

1				2	3		4	5	6	7	8	9	10	11	12

Old Private Sector Banks
1999-2000				1,333.42	591.68		8,282.11	7,065.08	1,217.03	7,690.43	5,362.85	1,585.84	1,017.48	741.74	1,702.23
				(1.82)	(0.81)		(11.33)	(9.66)	(1.66)	(10.52)	(7.33)	(2.17)	(1.39)	(1.01)	(2.33)
2000-01				1,475.75	502.15		9,091.20	8,054.57	1,036.63	8,589.05	5,931.92	1,683.53	1,049.57	973.60	2,122.65
				(1.75)	(0.59)		(10.76)	(9.53)	(1.23)	(10.16)	(7.02)	(1.99)	(1.24)	(1.15)	(2.51)
2001-02				2,516.19	1,004.49		10,946.04	8,725.33	2,220.71	9,941.55	6,494.96	1,934.89	1,178.28	1,511.70	2,230.37
				(2.70)	(1.08)		(11.74)	(9.36)	(2.38)	(10.67)	(6.97)	(2.08)	(1.26)	(1.62)	(2.39)
New Private Sector Banks
1999-2000				1,243.85	569.42		5,407.46	4,478.31	929.15	4,838.04	3,326.60	837.01	163.36	674.43	1,151.71
				(2.11)	(0.97)		(9.18)	(7.60)	(1.58)	(8.21)	(5.64)	(1.42)	(0.28)	(1.14)	(1.95)
2000-01				1,368.96	639.41		7,498.23	6,437.61	1,060.62	6,858.82	4,752.76	1,376.51	249.55	729.55	1,684.85
				(1.74)	(0.81)		(9.52)	(8.17)	(1.35)	(8.71)	(6.03)	(1.75)	(0.32)	(0.93)	(2.14)
2001-02				2,112.07	774.62	#	9,871.40	7,823.41	2,047.99	9,096.78	5,813.23	1,946.10	434.80	1,337.45	2,010.18
				(1.21)	(0.44)		(5.66)	(4.48)	(1.18)	(5.22)	(3.33)	(1.12)	(0.25)	(0.77)	(1.15)
Foreign Banks
1999-2000				2,687.01	967.97		10,329.89	8,226.81	2,103.08	9,361.92	4,976.66	2,666.22	866.98	1,719.04	3,250.15
				(3.24)	(1.17)		(12.47)	(9.93)	(2.54)	(11.31)	(6.01)	(3.22)	(1.05)	(2.08)	(3.92)
2000-01				3,110.39	944.98		11,986.88	9,469.51	2,517.37	11,041.90	5,762.89	3,113.60	990.04	2,165.41	3,706.62
				(3.05)	(0.93)		(11.74)	(9.27)	(2.47)	(10.81)	(5.64)	(3.05)	(0.97)	(2.12)	(3.63)
2001-02				3,513.01	1,492.11		12,959.89	9,699.64	3,260.25	11,467.78	6,053.72	3,393.16	1,122.59	2,020.90	3,645.92
				(3.13)	(1.33)		(11.56)	(8.65)	(2.91)	(10.23)	(5.40)	(3.03)	(1.00)	(1.80)	(3.25)

#	The profit after tax for 2001-02 of ICICI Bank includes about Rs. 8 crore attributable to ICICI, ICICI Personal Financial Services Ltd. and ICICI Capital Services Ltd. for March 30 and March 31, 2002.
Notes:		1.	The number of Scheduled Commercial Banks (excluding RRBs) in 1999-2000, 2000-01 and 2001-02 were 101, 100 and 97, respectively.
		2.	The number of Foreign Banks in 1999-2000, 2000-01 and 2001-02 were 42, 42 and 40, respectively.
		3.	The number of Old Private Banks in 1999-2000, 2000-01 and 2001-02 were 24, 23 and 22, respectively.
		4.	The number of New Private Banks for the years 1999-2000, 2000-01 and 2001-02 were 8 in each year.
		5.	Figures in brackets are percentages to Total Assets.
		6.	NII - Net Interest Income.
		7.	Scheduled Commercial Banks data for 2000-01 are as reported in the balance sheets for 2001-02 and hence may not tally with those reported in the Report on Trend and Progress of Banking in India, 2000-01, to the extent the figures for 2000-01 have been revised by some banks

2.3 Certain other features of the performance of commercial banks are the following. First, buoyed by favourable policy announcements, housing loans showed an accelerated growth of 38.4 per cent and with the result, the share of credit to housing increased three-fold from 3.8 per cent in 2000-01 to 11.6 per cent in 2001-02. Second, in the face of slowdown in industrial activity, banks have aggressively increased the share of credit towards ‘other non-priority sector personal loans’. This has doubled over the same period from 4.9 per cent to 10.0 per cent. Third, provisions and contingencies (P & C) of SCBs witnessed a rise of 36.6 per cent in 2001-02. The sharp increase in P & C, especially provisioning for NPAs, in the light of the gradual tightening of prudential norms, reflects the growing awareness on the part of banks to set aside larger quantum against impaired assets.

2.4 Notwithstanding the significant improvement in the overall performance of SCBs, there was wide divergence across bank groups. For example, the increase in income was the lowest for the foreign bank group (8.1 per cent), due to lower growth in their interest income. Foreign bank group also registered a low growth in expenditure (3.9 per cent), arising out of containment in interest expenses. 'Other income' of all bank groups recorded substantial increases reflecting increasing diversification into non-fund based activities. The maximum increase in this aspect was recorded by old private banks (114.2 per cent). The growth in operating expenses was the highest for new private banks, driven largely by increase in wage costs. PSBs, however, registered lower wage costs, due to cost control measures (organisational restructuring, enhancement of IT capabilities, etc.) and the voluntary retirement scheme (VRS) implemented in the previous year. Provisions and contingencies (P & C) increased for all bank groups, excepting in the case of foreign banks, whose provisioning requirements were low on account of improved asset quality.

2.5 During 2001-02, the total assets of SCBs witnessed an increase of 18.5 per cent over the previous year (excluding the impact of merger, the increase in asset growth was 13.4 per cent). Almost all bank groups witnessed double-digit asset growth during the year under review. Out of this, the increase for the PSBs stood at 12.2 per cent. Reflecting the impact of merger, the asset growth in the new private sector bank category witnessed a substantial jump of over 100 per cent over the previous year (excluding the impact of merger, the increase in asset growth was 19.1 per cent). Accordingly, the share of new private banks, which constituted 6.1 per cent of total assets of SCBs during 2000-01 improved to 11.4 per cent during 2001-02. Correspondingly, there was a decline in the shares of PSBs (75.3 per cent in 2001-02 as compared with 79.5 per cent in 2000-01), old private sector banks and foreign banks (Chart II.2).

1. RBI Standing Liquidity Facilities

2.6 The RBI has been providing accommodation to SCBs and primary dealers (PDs) in the form of standing liquidity facilities on certain specific considerations. These facilities comprise (i) export credit refinance (ECR) facility (ii) collateralised lending facility (CLF) to banks (terminated on October 4, 2002) and (iii) liquidity support to PDs. These are in addition to liquidity operations through the liquidity adjustment facility (LAF). The standing liquidity facilities available from RBI are split into: (i) normal facility available at Bank Rate, and (ii) back-stop facility available at variable daily rate at 1 percentage point above reverse repo cut-off rate in LAF auctions, or 2-3 percentage points above repo rate in the absence of emergence of rate at the reverse repo auctions, or 1-3 percentage point above NSE - MIBOR as decided by the RBI, when no bids for repo/ reverse repo auctions have been received/ accepted. While normal facility constitutes two-thirds of total limits under standing liquidity support, back-stop facility comprises one-third. With a view to furthering the progress of phasing out sector-specific standing facility in an environment of low CRR, it was decided that the apportionment of normal and back-stop facilities, which presently is in the ratio of two-thirds to one-third (67:33) would be changed to one-half each (50:50) from the fortnight beginning November 16, 2002.

2.7 The outstanding export credit, which increased from Rs.45,387 crore as on March 23, 2001 to Rs.47,705 crore as on May 4, 2001, declined after some fluctuations to Rs.43,123 crore as on March 22, 2002. As a result, aggregate export credit as percentage of net bank credit dropped from 8.9 per cent to 7.4 per cent over this period. The export credit refinance limit on the other hand which had gone up from Rs.7,192 crore as on March 23, 2001 to Rs.9,221 crore as on June 29, 2001 on account of higher export credit along with change in formula effective the fortnight beginning May 5, 2001, declined subsequently to Rs.9,086 crore as on March 22, 2002 and further to Rs.5,198 crore as on September 20, 2002, reflecting the trend in export credit (Appendix Table II.1).

2.8 The daily average utilisation of export credit refinance (ECR) facility remained subdued during 2001-02 on account of substantial improvement in liquidity conditions in the economy. On fortnightly basis, it ranged between Rs.5,740 crore (69.5 per cent of limits) and Rs.1,135 crore (12.4 per cent of limits) during 2001-02. On average basis, the utilisation of export credit refinance stood at Rs.3,793 crore against the limit of Rs.9,014 crore during 2001-02. The utilisation of export credit refinance, which was subdued in April 2002, picked up somewhat in May 2002 and stood at Rs.2,130 crore as on May 31, 2002 (36.9 per cent of limits). Thereafter, the utilisation of export credit declined and stood at Rs. 11 crore as September 20, 2002 on account of easy liquidity conditions in the economy. ECR remains the only standing facility available for banks since October 5, 2002.

Collateralised Lending Facility (CLF)

2.9 The SCBs were provided CLF against collateral of excess holdings of Central government dated securities/treasury bills over their SLR requirements. The extent of liquidity support available to each bank was stipulated at equivalent to 0.125 per cent of its fortnightly average outstanding aggregate deposits 1997-98.

2.10 The utilisation of CLF during 2001-remained low due to easy liquidity conditions the economy. During the above period, daily average utilisation of CLF ranged between Rs.239 crore (36.3 per cent of limit) and Rs.21 crore (3. per cent of limit). On average, banks utilised Rs.124 crore against the limit of Rs.657 crore during the year. As on May 31, 2002, the average utilisation of CLF was Rs.127 crore (19.4 per cent of limits). However, during June 1 to October 2002, utilisation of CLF virtually remained nil The CLF was completely phased out since October 5, 2002. The option to reintroduce the CLF the future has, however, been retained.

2. Assets and Liabilities of Scheduled Commercial Banks

2.11 The assets and liabilities of SCBs are analysed on the basis of two data sources, viz., audited annual accounts and returns submitted by banks under Section 42(2) of RBI Act, 1934. As per the balance sheet data, during the year 2001-02, assets of SCBs (excluding RRBs) recorded a growth of 18.5 per cent (13.4 per cent, excluding the impact of merger). The shares of advances and investments in total assets stood at 42.1 per cent and 38.3 per cent, respectively. On the liability front, the composition underwent marginal changes with a decline in the share of deposits of SCBs from 81.5 per cent in 2000-01 to 78.3 per cent in 2001-02, and an increase in the share of borrowings from 4.3 per cent to 7.0 per cent during the same period. The share of short-term assets (cash and balances with RBI plus balances with banks and call/notice money) also declined over the period from 14.7 per cent to 13.3 per cent. Bank group-wise details of the consolidated balance sheets are presented in Tables II.2, II.3, II.4, II.5.

Table II.2: Consolidated Balance Sheet of Scheduled Commercial Banks

(Amount in Rs. crore)

			As on March 31, 2001		As on March 31, 2002
Item			Amount	per cent		Amount	per cent
				to total			to total

	1		2	3		4	5

	Liabilities
1.	Capital		19,094.71	1.47		21,472.67	1.40
2.	Reserves & Surplus		48,645.12	3.76		62,686.91	4.08
3.	Deposits		10,55,386.43	81.47		12,02,699.42	78.33
	3.1	Demand Deposits	1,39,732.74	10.79		1,53,069.81	9.97
	3.2	Savings Bank Deposits	2,18,712.78	16.88		2,55,597.80	16.65
	3.3	Term Deposits	6,96,940.91	53.80		7,94,031.81	51.71
4.	Borrowings		55,514.58	4.29		1,07,180.18	6.98
5.	Other Liabilities and Provisions		1,16,764.50	9.01		1,41,473.95	9.21

Total Liabilities			12,95,405.34	100.00		15,35,513.13	100.00

Assets
1.	Cash and balances with RBI		84,503.53	6.52		86,760.51	5.65
2.	Balances with banks and
	money at call and short notice		1,05,970.66	8.18		1,17,518.25	7.65
3.	Investments		4,91,755.14	37.96		5,88,058.29	38.30
	3.1	In Govt. Securities (a+b)	3,53,190.33	27.26		4,31,753.46	28.12
		a. In India	3,50,701.18	27.07		4,28,363.38	27.90
		b. Outside India	2,489.15	0.19		3,390.08	0.22
	3.2	In other approved Securities	23,800.91	1.84		21,752.96	1.42
	3.3	In non-approved Securities	1,14,763.90	8.86		1,34,551.87	8.76
4.	Loans and Advances		5,26,150.85	40.62		6,45,743.04	42.05
	4.1	Bills purchased & discounted	50,267.48	3.88		53,609.38	3.49
	4.2	Cash Credit, Overdrafts, etc.	2,85,851.62	22.07		3,21,725.86	20.95
	4.3	Term Loans	1,90,031.75	14.67		2,70,407.80	17.61
5.	Fixed Assets		16,237.29	1.25		20,083.30	1.31
6.	Other Assets		70,787.87	5.46		77,349.74	5.04

Total Assets			12,95,405.34	100.00		15,35,513.13	100.00

Source: Balance sheets of respective banks

Table II.3: Consolidated Balance Sheet of Public Sector Banks

(Amount in Rs.crore)

Item			Public Sector Banks				Nationalised Banks				State Bank Group

			As on March 31, 2001		As on March 31, 2002		As on March 31, 2001		As on March 31, 2002		As on March 31, 2001		As on March 31, 2002

			Amount	per cent	Amount	per cent	Amount	per cent	Amount	per cent	Amount	per cent	Amount	per cent
				to total		to total		to total		to total		to total		to total

1			2	3	4	5	6	7	8	9	10	11	12	13

Liabilities
1. Capital			14,547.08	1.41	15,177.66	1.31	13,511.28	2.15	14,141.86	2.00	1,035.80	0.26	1,035.80	0.23
2. Reserves & Surplus			35,358.25	3.43	42,276.10	3.66	18,998.94	3.03	23,253.09	3.29	16,359.31	4.06	19,023.01	4.23
3. Deposits			8,59,461.95	83.45	9,68,749.32	83.82	5,47,343.50	87.30	6,17,672.68	87.46	3,12,118.45	77.45	3,51,076.64	78.10
3.1		Demand Deposits	1,11,223.79	10.80	1,19,052.32	10.30	60,723.51	9.68	65,783.23	9.31	50,500.28	12.53	53,269.09	11.85
3.2		Savings Bank Deposits	1,96,906.73	19.12	2,28,138.16	19.74	1,33,047.88	21.22	1,53,245.61	21.70	63,858.85	15.85	74,892.55	16.66
3.3		Term Deposits	5,51,331.43	53.53	6,21,558.84	53.78	3,53,572.11	56.39	3,98,643.84	56.45	1,97,759.32	49.07	2,22,915.00	49.59
4. Borrowings			20,108.84	1.95	20,567.37	1.78	8,702.59	1.39	10,515.56	1.49	11,406.25	2.83	10,051.81	2.24
5. Other Liabilities and Provisions			1,00,496.07	9.76	1,08,966.32	9.43	38,431.51	6.13	40,644.82	5.76	62,064.56	15.40	68,321.50	15.20

Total Liabilities			10,29,972.19	100.00	11,55,736.77	100.00	6,26,987.82	100.00	7,06,228.01	100.00	4,02,984.37	100.00	4,49,508.76	100.00

Assets
1. Cash and balances with RBI			69,866.39	6.78	71,407.46	6.18	45,341.37	7.23	44,120.06	6.25	24,525.02	6.09	27,287.40	6.07
2. Balances with banks and
money at call and short notice			82,873.72	8.05	79,474.14	6.88	35,958.20	5.74	31,877.48	4.51	46,915.52	11.64	47,596.66	10.59
3. Investments			3,94,107.33	38.26	4,54,007.90	39.28	2,36,915.01	37.79	2,68,420.61	38.01	1,57,192.32	39.01	1,85,587.29	41.29
3.1	In Govt. Securities (a+b)		2,91,997.88	28.35	3,44,691.24	29.82	1,67,433.29	26.70	1,93,179.82	27.35	1,24,564.59	30.91	1,51,511.42	33.71
	a. In India		2,89,592.62	28.12	3,41,397.65	29.54	1,65,317.70	26.37	1,90,180.35	26.93	1,24,274.92	30.84	1,51,217.30	33.64
	b. Outside India		2,405.26	0.23	3,293.59	0.28	2,115.59	0.34	2,999.47	0.42	289.67	0.07	294.12	0.07
3.2	In other approved Securities		22,318.71	2.17	20,460.80	1.77	15,065.56	2.40	13,815.13	1.96	7,253.15	1.80	6,645.67	1.48
3.3	In non-approved Securities		79,790.74	7.75	88,855.86	7.69	54,416.16	8.68	61,425.66	8.70	25,374.58	6.30	27,430.20	6.10
4. Loans and Advances			4,14,989.36	40.29	4,80,680.54	41.59	2,64,601.54	42.20	3,16,091.12	44.76	1,50,387.82	37.32	1,64,589.42	36.62
4.1	Bills purchased & discounted		34,124.56	3.31	36,583.72	3.17	17,953.87	2.86	20,833.59	2.95	16,170.69	4.01	15,750.13	3.50
4.2	Cash Credit, Overdrafts, etc.		2,32,731.36	22.60	2,67,890.64	23.18	1,47,927.04	23.59	1,77,169.90	25.09	84,804.32	21.04	90,720.74	20.18
4.3	Term Loans		1,48,133.44	14.38	1,76,206.18	15.25	98,720.63	15.75	1,18,087.63	16.72	49,412.81	12.26	58,118.55	12.93
5. Fixed Assets			10,472.99	1.02	10,420.00	0.90	7,427.83	1.18	7,531.11	1.07	3,045.16	0.76	2,888.89	0.64
6. Other Assets			57,662.40	5.60	59,746.73	5.17	36,743.87	5.86	38,187.63	5.41	20,918.53	5.19	21,559.10	4.80

Total Assets			10,29,972.19	100.00	11,55,736.77	100.00	6,26,987.82	100.00	7,06,228.01	100.00	4,02,984.37	100.00	4,49,508.76	100.00

Source: Balance sheets of respective banks.

Table II.4: Consolidated Balance Sheet of Private Sector Banks

												(Amount in Rs.crore)

	Item		Private Sector Banks				Old Private Sector Banks				New Private Sector Banks

			As on March 31, 2001		As on March 31, 2002		As on March 31, 2001		As on March 31, 2002		As on March 31, 2001		As on March 31, 2002

			Amount	per cent	Amount	per cent	Amount	per cent	Amount	per cent	Amount	per cent	Amount	per cent
				to total		to total		to total		to total		to total		to total

1			2	3	4	5	6	7	8	9	10	11	12	13

Liabilities
1.	Capital		1,877.63	1.15	2,718.86	1.02	603.91	0.71	604.79	0.65	1,273.72	1.62	2,114.07	1.21
2.	Reserves & Surplus		6,999.26	4.29	13,472.08	5.03	3,948.27	4.67	4,806.25	5.16	3,050.99	3.87	8,665.83	4.97
3.	Deposits		1,36,634.57	83.66	1,69,439.55	63.30	73,746.28	87.24	80,447.17	86.29	62,888.29	79.81	88,992.38	51.01
	3.1	Demand Deposits	16,613.84	10.17	20,404.39	7.62	7,594.76	8.98	8,114.22	8.70	9,019.08	11.45	12,290.17	7.04
	3.2	Savings Bank Deposits	16,177.02	9.90	20,120.17	7.52	10,345.25	12.24	11,828.99	12.69	5,831.77	7.40	8,291.18	4.75
	3.3	Term Deposits	1,03,843.71	63.58	1,28,914.99	48.16	55,806.27	66.02	60,503.96	64.90	48,037.44	60.96	68,411.03	39.21
4.	Borrowings		8,695.33	5.32	56,857.57	21.24	2,117.03	2.50	2,725.12	2.92	6,578.30	8.35	54,132.45	31.03
5.	Other Liabilities and Provisions		9,118.60	5.58	25,191.87	9.41	4,113.42	4.87	4,642.46	4.98	5,005.18	6.35	20,549.41	11.78

Total Liabilities			1,63,325.39	100.00	2,67,679.93	100.00	84,528.91	100.00	93,225.79	100.00	78,796.48	100.00	1,74,454.14	100.00

Assets
1.	Cash and balances with RBI		10,732.70	6.57	11,306.23	4.22	5,783.83	6.84	5,296.35	5.68	4,948.87	6.28	6,009.88	3.44
2.	Balances with banks and
	money at call and short notice		12,571.15	7.70	22,425.74	8.38	6,160.24	7.29	6,500.73	6.97	6,410.91	8.14	15,925.01	9.13
3.	Investments		61,891.35	37.89	98,956.83	36.97	29,989.80	35.48	34,030.21	36.50	31,901.55	40.49	64,926.62	37.22
	3.1	In Govt. Securities (a+b)	37,828.54	23.16	62,955.57	23.52	20,033.35	23.70	23,840.20	25.57	17,795.19	22.58	39,115.37	22.42
		a. In India	37,744.65	23.11	62,859.08	23.48	19,957.42	23.61	23,755.83	25.48	17,787.23	22.57	39,103.25	22.41
		b. Outside India	83.89	0.05	96.49	0.04	75.93	0.09	84.37	0.09	7.96	0.01	12.12	0.01
	3.2	In other approved Securities	1,262.80	0.77	1,126.90	0.42	1,177.27	1.39	1,012.49	1.09	85.53	0.11	114.41	0.07
	3.3	In non-approved Securities	22,800.01	13.96	34,874.36	13.03	8,779.18	10.39	9,177.52	9.84	14,020.83	17.79	25,696.84	14.73
4. Loans and Advances			68,110.71	41.70	116,430.11	43.50	37,947.83	44.89	42,285.68	45.36	30,162.88	38.28	74,144.43	42.50
	4.1	Bills purchased & discounted	11,013.64	6.74	10,405.19	3.89	4,981.44	5.89	4,204.38	4.51	6,032.20	7.66	6,200.81	3.55
	4.2	Cash Credit, Overdrafts, etc.	34,894.24	21.36	35,529.74	13.27	19,916.33	23.56	22,415.14	24.04	14,977.91	19.01	13,114.60	7.52
	4.3	Term Loans	22,202.83	13.59	70,495.18	26.34	13,050.06	15.44	15,666.16	16.80	9,152.77	11.62	54,829.02	31.43
5.	Fixed Assets		3,480.73	2.13	7,413.42	2.77	1,433.74	1.70	1,471.98	1.58	2,046.99	2.60	5,941.44	3.41
6.	Other Assets		6,538.75	4.00	11,147.60	4.16	3,213.47	3.80	3,640.84	3.91	3,325.28	4.22	7,506.76	4.30

Total Assets			1,63,325.39	100.00	2,67,679.93	100.00	84,528.91	100.00	93,225.79	100.00	78,796.48	100.00	1,74,454.14	100.00

Source: Balance sheets of respective banks.

Table II.5: Consolidated Balance Sheet of Foreign Banks in India

(Amount in Rs.crore)

Item			As on March 31, 2001		As on March 31, 2002

			Amount	per cent	Amount	per cent
				to total		to total

1			2	3	4	5

Liabilities
1.	Capital		2,670.00	2.61	3,576.15	3.19
2.	Reserves & Surplus		6,287.61	6.16	6,938.73	6.19
3.	Deposits		59,289.91	58.07	64,510.55	57.55
	3.1	Demand Deposits	11,895.11	11.65	13,613.10	12.14
	3.2	Savings Bank Deposits	5,629.03	5.51	7,339.47	6.55
	3.3	Term Deposits	41,765.77	40.90	43,557.98	38.86
4.	Borrowings		26,710.41	26.16	29,755.24	26.54
5.	Other Liabilities and Provisions		7,149.83	7.00	7,315.76	6.53

Total Liabilities			1,02,107.76	100.00	1,12,096.43	100.00

Assets
1.	Cash and balances with RBI		3,904.44	3.82	4,046.82	3.61
2.	Balances with banks and
	money at call and short notice		10,525.79	10.31	15,618.37	13.93
3.	Investments		35,756.46	35.02	35,093.56	31.31
	3.1	In Govt. Securities (a+b)	23,363.91	22.88	24,106.65	21.51
		a. In India	23,363.91	22.88	24,106.65	21.51
		b. Outside India	-	-	-	-
	3.2	In other approved Securities	219.40	0.21	165.26	0.15
	3.3	In non-approved Securities	12,173.15	11.92	10,821.65	9.65
4.	Loans and Advances		43,050.78	42.16	48,632.39	43.38
	4.1	Bills purchased & discounted	5,129.28	5.02	6,620.47	5.91
	4.2	Cash Credit, Overdrafts, etc.	18,226.02	17.85	18,305.48	16.33
	4.3	Term Loans	19,695.48	19.29	23,706.44	21.15
5.	Fixed Assets		2,283.57	2.24	2,249.88	2.01
6.	Other Assets		6,586.72	6.45	6,455.41	5.76

Total Assets			1,02,107.76	100.00	1,12,096.43	100.00

Source: Balance sheets of respective banks