Developments in Commercial Banking (Part 1 of 4)

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Developments in Commercial Banking (Part 1 of 4)

Chapter II

1	Reserve Bank Standing Liquidity Facilities
2	Assets and Liabilities Structure of Scheduled Commercial Banks
3	Financial Performance of Scheduled Commercial Banks
4	Non-Performing Assets
5	Capital to Risk-Weighted Assets Ratio (CRAR)
6	Equity Capital and Subordinated Debt
7	Indian Banks’ Branches Abroad
8	Foreign Banks’ Branches in India
9	Regional Rural Banks
10	Local Area Banks
11	Regional Spread of Banking
12	Interest Rates of Scheduled Commercial Banks
13	Diversification in Banks’ Operations
14	Developments in Retail Banking
15	Priority Sector Lending
16	Supervisory Developments
17	Frauds/Robberies

The scheduled banking structure in India consists of banks that are listed in the Second Schedule of the Reserve Bank of India Act, 1934. These scheduled banks comprise commercial banks, regional rural banks, urban co-operative banks and state co-operative banks. As at end-March 2001, 100 commercial banks, 196 regional rural banks, 51 urban co-operative banks and 16 state co-operative banks were operative in India as scheduled banks (Chart II.1). This chapter discusses the operations and performance of commercial banks (including public sector, private sector and foreign banks), and regional rural banks in India for the financial year 2000-01.

2.2 During the year 2000-01, the Indian banking sector continued to respond to the emerging challenges of increased competition and uncertainties. While the prudential and supervisory norms are being brought in conformity with international best practices to further strengthen the stability of the banking system, the ongoing reforms provide greater operational flexibility to commercial banks. In their business strategy, commercial banks exhibited a greater emphasis on product diversification, customer orientation, thrust towards retail banking, adoption of information technology for improved service, better management information systems and risk management, and strategic mergers and acquisitions across bank groups. The major policy measures pertaining to commercial banks during the year are given in Annexure. The overall financial performance of the scheduled commercial banks (SCBs), excluding RRBs, during the year under review, however, was marked by a decline in net profits reflecting higher operating expenses, a deceleration in ‘other income’ and higher provisions and contingencies. The increase in operating expenses was largely due to allocations for voluntary retirement scheme (VRS). Among the major financial parameters of the banking sector, the growth in income during 2000-01 was 14.9 per cent while that in expenditure was 16.7 per cent. Growth in other income decelerated to 8.8 per cent from 23.5 per cent in the previous year while operating expenditures accelerated to 23.9 per cent from 8.8 per cent, thereby affecting the net profits of the banking sector (Table II.1).

2. 3 In the total assets of all SCBs, excluding RRBs, public sector banks (PSBs) continued to have a dominant share of 79.5 per cent as at end-March 2001 with nationalised banks accounting for 48.4 per cent and the State Bank of India (SBI) and its seven associate banks accounting for 31.1 per cent. The share of private sector banks in the total assets of SCBs stood at 12.6 per cent, with that of old and new private banks being 6.5 per cent and 6.1 per cent, respectively. Foreign banks accounted for the remaining 7.9 per cent (Chart II.2).

1. Reserve Bank Standing Liquidity Facilities

2. 4 The Reserve Bank has been providing accommodation to SCBs in the form of standing liquidity facilities on certain specific considerations. These comprise Collateralised Lending Facility (CLF), export credit refinance to banks and liquidity support to Primary Dealers (PDs). The Liquidity Adjustment Facility (LAF), introduced since June 5, 2000, has emerged as an effective and flexible instrument for influencing liquidity on a day-to-day basis. It could be made more effective only when it becomes the primary instrument of liquidity adjustment and the standing liquidity facilities are gradually replaced with the LAF. The replacement of these facilities has to be structured in stages over a reasonable period so that the transition to LAF as the primary instrument does not cause any serious operational problems for banks and PDs to adjust their asset-liability positions smoothly.

2.5 In the first stage, effective June 5, 2000, the Additional Collateralised Lending Facility (ACLF) to banks and Level II support to PDs were replaced by variable rate repo auctions with the same day settlement. Stage II envisages replacement of Collateralised Lending Facility (CLF) and Level I support to PDs by variable rate repo auctions. As this has to be achieved through various stages, a package of measures was announced in the annual Policy Statement in April 2001 encompassing changes in operating procedures of LAF, a strategy for smooth transition of call money market to pure inter-bank market and a comprehensive programme for rationalisation of liquidity support available to the system as also a set of complementary measures in money and government securities markets. In this stage, the total entitlement under standing liquidity facilities (CLF and export credit refinance) was split into normal facility (constituting two-third) and the back-stop facility (constituting one-third) with effect from May 5, 2001. While liquidity under normal facility is available at the Bank Rate, back-stop facility is provided at a variable daily rate linked to liquidity adjustment facility (LAF) operations/ National Stock Exchange (NSE) - Mumbai Inter-Bank Offer Rate (MIBOR).

Table II.1: Bank Group-wise Important Financial Indicators
(Amount in Rs. crore)
Year	Operating	Net	Income	Interest	Other	Expenditure	Interest	Operating		Provisions	Spread
	Profit	Profit		Income	Income		Expended	Expenses		& Contin-	(NII)
	(3+11)	(4-7)	(5+6)			(8+9+11)		TotalOf which		gencies
								Wage Bill
1	2	3	4	5	6	7	8	9	10	11	12
Scheduled Commercial Banks

1998-99	13,810.69	4,490.34	1,00,062.00	87,312.04	12,749.96	95,571.66	60,904.99	25,346.32	16,649.52	9,320.35	26,407.05

	(1.45)	(0.47)	(10.52)	(9.18)	(1.34)	(10.05)	(6.41)	(2.67)	(1.75)	(0.98)	(2.78)

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	19,747.04	6,424.10	1,32,078.24	1,14,951.13	17,127.11	1,25,654.14	78,151.87	34,179.33	23,205.53	13,322.94	36,799.26

	(1.52)	(0.50)	(10.20)	(8.88)	(1.32)	(9.70)	(6.04)	(2.64)	(1.79)	(1.03)	(2.84)

Public Sector Banks

1998-99	10,560.79	3,253.85	78,850.36	69,417.42	9,432.94	75,596.51	47,839.75	20,449.82	14,839.66	7,306.94	21,577.67

	(1.37)	(0.42)	(10.24)	(9.01)	(1.22)	(9.82)	(6.21)	(2.66)	(1.93)	(0.95)	(2.80)

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	13,792.95	4,316.94	1,03,498.93	90,983.98	12,514.95	99,181.99	61,692.75	28,013.23	20,929.17	9,476.01	29,291.23

	(1.34)	(0.42)	(10.05)	(8.84)	(1.22)	(9.63)	(5.99)	(2.72)	(2.03)	(0.92)	(2.84)

Nationalised Banks

1998-99	5,912.73	1,788.19	49,500.95	44,291.27	5,209.68	47,712.76	30,856.91	12,731.31	9,346.79	4,124.54	13,434.36

	(1.22)	(0.37)	(10.22)	(9.15)	(1.08)	(9.85)	(6.37)	(2.63)	(1.93)	(0.85)	(2.77)

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	8,053.33	2,095.09	64,126.52	56,967.11	7,159.41	62,031.43	38,789.64	17,283.55	13,142.78	5,958.24	18,177.47

	(1.28)	(0.33)	(10.23)	(9.09)	(1.14)	(9.90)	(6.19)	(2.76)	(2.10)	(0.95)	(2.90)

State Bank Group

1998-99	4,648.06	1,465.66	29,349.41	25,126.15	4,223.26	27,883.75	16,982.84	7,718.51	5,492.87	3,182.40	8,143.31

	(1.63)	(0.51)	(10.27)	(8.79)	(1.48)	(9.76)	(5.94)	(2.70)	(1.92)	(1.11)	(2.85)

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	39,372.41	34,016.87	5,355.54	37,150.56	22,903.11	10,729.68	7,786.39	3,517.77	11,113.76

	(1.42)	(0.55)	(9.77)	(8.44)	(1.33)	(9.22)	(5.68)	(2.66)	(1.93)	(0.87)	(2.76)
Old Private Sector Banks

1998-99	792.15	311.46	7,362.14	6,493.40	868.74	7,050.68	5,087.73	1,482.26	919.95	480.69	1,405.67

	(1.21)	(0.48)	(11.24)	(9.92)	(1.33)	(10.77)	(7.77)	(2.26)	(1.41)	(0.73)	(2.15)

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	1,479.97	522.84	9,091.21	8,052.11	1,039.10	8,568.37	5,931.92	1,679.32	1,037.49	957.13	2,120.19

	(1.75)	(0.62)	(10.75)	(9.52)	(1.23)	(10.13)	(7.01)	(1.98)	(1.23)	(1.13)	(2.51)

New Private Sector Banks

1998-99	684.28	397.05	4,130.49	3,540.88	589.61	3,733.44	2,776.94	669.27	119.97	287.23	763.94

	(1.78)	(1.03)	(10.72)	(9.19)	(1.53)	(9.69)	(7.21)	(1.74)	(0.31)	(0.75)	(1.98)

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	1,368.97	639.41	7,504.26	6,444.25	1,060.01	6,864.85	4,759.12	1,376.17	248.85	729.56	1,685.13

	(1.74)	(0.81)	(9.53)	(8.18)	(1.35)	(8.71)	(6.04)	(1.75)	(0.32)	(0.93)	(2.14)

Foreign Banks

1998-99	1,773.47	527.98	9,719.01	7,860.34	1,858.67	9,191.03	5,200.57	2,744.97	769.94	1,245.49	2,659.77

	(2.32)	(0.69)	(12.69)	(10.27)	(2.43)	(12.00)	(6.79)	(3.59)	(1.01)	(1.63)	(3.47)

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	3,105.15	944.91	11,983.84	9,470.79	2,513.05	11,038.93	5,768.08	3,110.61	990.02	2,160.24	3,702.71

	(3.05)	(0.93)	(11.77)	(9.30)	(2.47)	(10.84)	(5.66)	(3.05)	(0.97)	(2.12)	(3.64)

Notes:	1.	The numbers of scheduled commercial banks (excluding RRBs) in 1998-99, 1999-2000 and 2000-01 were 105, 101 and 100, respectively.
	2.	The numbers of foreign banks in 1998-99, 1999-2000 and 2000-01 were 44, 42 and 42, respectively.
	3.	The numbers of old private banks in 1998-99, 1999-2000 and 2000-01 were 25, 24 and 23, respectively.
	4.	The numbers of new private banks in 1998-99, 1999-2000 and 2000-01 were 9, 8 and 8, respectively.
	5.	Figures in brackets are percentages to Total Assets.
	6.	NII - Net Interest Income.
	7.	Scheduled commercial banks data for 1999-2000 are as reported in the balance sheets for 2000-01 and hence may not tally with those reported in the Report on Trend and
		Progress of Banking in India 1999-2000, to the extent the figures for 1999-2000 have been revised by some banks.

2.6 In order to further strengthen LAF, a pure inter-bank call/notice money market coupled with the growth of a deep and liquid repo/reverse repo market for non-bank participants, was envisaged. Accordingly, effective May 5, 2001, non-banks are permitted to lend, up to 85 per cent of their average daily lending during 2000-01 in a reporting fortnight.

2.7 With full-fledged LAF and the gradual discontinuation of segmented standing facilities at pre-determined interest rates, the Reserve Bank would gain greater flexibility in the daily liquidity management.

Export Credit Refinance

2.8 During 2000-01, the export credit refinance limits of banks decreased from Rs.10,579 crore (30.6 per cent of outstanding export credit eligible for refinance at Rs.34,576 crore) as on March 24, 2000 to Rs.7,192 crore (18.5 per cent of outstanding export credit eligible for refinance at Rs.38,765 crore) as on March 23, 2001 (Appendix Table II.1). The general trend in utilisation of export credit refinance by banks was, on an average, downward, except during August to November 2000, when the utilisation ranged higher between 80 per cent and 96 per cent, owing to tight liquidity conditions.

2.9 Effective from the fortnight beginning May 5, 2001, scheduled commercial banks are provided export credit refinance to the extent of 15.0 per cent of the outstanding export credit eligible for refinance as at the end of the second preceding fortnight. The existing refinance limit as on May 4, 2001 as per the old formula will constitute the minimum limit available to a bank up to March 31, 2002. During the period April-September 2001, it ranged between Rs. 1,135 crore (12.4 per cent of the limits) and Rs. 4,973 crore (69.8 per cent of the limits). Utilisation of this facility remained low on account of improvement in overall liquidity conditions during the period.

Collateralised Lending Facility

2.10 The CLF limits of banks decreased from Rs.3,028 crore as on March 24, 2000 to Rs.657 crore as on March 23, 2001. The daily average utilisation of CLF ranged between Rs.171 crore (13.0 per cent of the limits) and Rs.487 crore (74.1 per cent of the limits). For the period April-October 2001, it ranged between Rs.45 crore (6.9 per cent of the limits) and Rs.239 crore (36.4 per cent of the limits).

Special Facilities

2.11 In the wake of liquidity crisis faced by a few co-operative banks, the Reserve Bank announced, as a temporary measure, a special collateralised liquidity facility for short periods to co-operative banks. Five co-operative banks had approached the Reserve Bank for special liquidity facility during May 14 - June 13, 2001. An amount of Rs. 149.38 crore was sanctioned, out of which Rs. 45 crore was availed and repaid. A private sector bank approached the Reserve Bank with a request for special liquidity support for a short period to tide over its temporary liquidity mismatches. The Reserve Bank after an assessment of the bank's overall assets position, extended a temporary and special collateralised credit facility of Rs.463.50 crore for 81 days ending June 30, 2001.

2. Assets and Liabilities Structure of Scheduled Commercial Banks

2.12 The assets and liabilities of SCBs are analysed on the basis of two sources of data, viz., audited balance sheets of banks and returns submitted by banks under Section 42(2) of the Reserve Bank of India Act, 1934. As per the balance sheet data during the year 2000-01, the assets of SCBs, excluding RRBs, increased by 17.1 per cent compared with a growth of 16.3 per cent during 1999-2000. The shares of investments and loans and advances in total assets of SCBs were 38.0 per cent and 40.6 per cent, respectively. During the year under review, the liability structure of SCBs underwent marginal changes. On the liabilities side, capital of SCBs in total liabilities declined from 1.7 per cent at end-March 2000 to 1.5 per cent at end-March 2001, and reserves and surplus declined marginally from 3.9 per cent to 3.8 per cent. The share of deposits in total liabilities increased to 81.5 per cent from 81.1 per cent over the year. Bank group-wise details of the consolidated balance sheets are presented in Tables II.2 , II 3, II 4 II.5. As per Section 42(2) returns, the ratio of cash and balances with RBI to aggregate deposits of SCBs declined to 6.8 per cent as on the last reporting Friday of March 2001, from 7.7 per cent in the comparable period of the previous year, reflecting the reduction in cash reserve ratio of banks during the year (Table II.6).

Deposits

2.13 The aggregate deposits of SCBs during 2000-01(reported under Section 42(2) of the Reserve Bank Act) registered a growth rate of 18.4 per cent (Rs.1,49,274 crore) as compared with that of 13.9 per cent (Rs.99,319 crore) in 1999-2000. This higher growth rate of deposits in 2000-01 can partly be attributable to the inflow of deposits (Rs. 25,662 crore) under the India Millennium Deposits (IMD) scheme. The growth rate of deposits, excluding the IMD inflows, was 15.2 per cent. Both, demand and time deposits recorded higher growth rates of 11.9 per cent and 19.5 per cent, respectively, during 2000-01 as compared with the growth of 8.5 per cent in demand deposits and 15.0 per cent in time deposits in the previous year (Table II.6).

Table II.2: Consolidated Balance Sheet of Scheduled Commercial Banks
(Amount in Rs.crore)
			As on March 31, 2000		As on March 31, 2001
Item			Amount	per cent	Amount	per cent
				to total		to total
1			2	3	4	5
Liabilities
1. Capital			18,435.19	1.67	19,094.70	1.47
2. Reserves & Surplus			43,451.85	3.93	48,646.77	3.76
3. Deposits			8,96,695.70	81.11	10,55,233.47	81.49
	3.1	Demand Deposits	1,28,490.43	11.62	1,39,685.99	10.79
	3.2	Savings Bank Deposits	1,87,977.20	17.00	2,18,716.01	16.89
	3.3	Term Deposits	5,80,228.07	52.49	6,96,831.47	53.81
4. Borrowings			45,140.85	4.08	55,421.01	4.28
5. Other Liabilities and Provisions			1,01,740.79	9.20	1,16,578.00	9.00
Total Liabilities			11,05,464.38	100.00	12,94,973.95	100.00
Assets
1. Cash and balances with RBI			84,927.75	7.68	84,503.53	6.53
2. Balances with banks andmoney at call and short notice			81,218.30	7.35	1,05,899.62	8.18
3. Investments			4,12,081.46	37.28	4,91,907.84	37.99
	3.1	In Govt. Securities (a+b)	2,86,523.54	25.92	3,52,679.30	27.23
		a. In India	2,84,619.10	25.75	3,50,638.83	27.08
		b. Outside India	1,904.44	0.17	2,040.47	0.16
	3.2	In other approved Securities	25,009.00	2.26	23,947.68	1.85
	3.3	In non-approved Securities	1,00,548.92	9.10	1,15,280.86	8.90
4. Loans and Advances			4,44,124.64	40.18	5,25,682.94	40.59
	4.1	Bills purchased & discounted	42,357.14	3.83	50,223.79	3.88
	4.2	Cash Credit, Overdrafts, etc.	2,43,823.72	22.06	2,85,747.26	22.07
	4.3	Term Loans	1,57,943.78	14.29	1,89,711.89	14.65
5. Fixed Assets			15,294.44	1.38	16,208.90	1.25
6. Other Assets			67,817.79	6.13	70,771.12	5.47
Total Assets			11,05,464.38	100.00	12,94,973.95	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, 2000		As on March 31, 2001		As on March 31, 2000		As on March 31, 2001		As on March 31, 2000		As on March 31, 2001
			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			14,233.68	1.60	14,547.08	1.41	13,197.88	2.38	13,511.28	2.16	1,035.80	0.31	1,035.80	0.26
2. Reserves & Surplus			31,818.73	3.57	35,358.25	3.43	17,334.98	3.13	18,998.94	3.03	14,483.75	4.31	16,359.31	4.06
3. Deposits			7,37,280.53	82.78	8,59,376.33	83.45	4,80,992.51	86.79	5,47,258.83	87.30	2,56,288.02	76.19	3,12,117.50	77.47
	3.1 Demand Deposits		1,02,423.38	11.50	1,11,138.18	10.79	57,008.07	10.29	60,638.84	9.67	45,415.31	13.50	50,499.34	12.53
	3.2 Savings Bank Deposits		1,71,129.96	19.22	1,96,906.73	19.12	1,15,932.31	20.92	1,33,047.88	21.22	55,197.65	16.41	63,858.85	15.85
	3.3 Term Deposits		4,63,727.19	52.07	5,51,331.42	53.54	3,08,052.13	55.58	3,53,572.11	56.40	1,55,675.06	46.28	1,97,759.31	49.09
4. Borrowings			19,425.33	2.18	20,084.40	1.95	8,864.93	1.60	8,679.36	1.38	10,560.40	3.14	11,405.04	2.83
5. Other Liabilities and Provisions			87,841.78	9.86	1,00,403.53	9.75	33,815.42	6.10	38,443.71	6.13	54,026.36	16.06	61,959.82	15.38
Total Liabilities			8,90,600.05	100.00	10,29,769.59	100.00	5,54,205.72	100.00	6,26,892.12	100.00	3,36,394.33	100.00	4,02,877.47	100.00
Assets
1. Cash and balances with RBI			70,791.53	7.95	69,866.39	6.78	45,577.96	8.22	45,341.37	7.23	25,213.57	7.50	24,525.02	6.09
2. Balances with banks
And money at call and short notice			64,807.92	7.28	82,851.54	8.05	32,892.16	5.94	35,958.21	5.74	31,915.76	9.49	46,893.33	11.64
3. Investments			3,33,192.09	37.41	3,94,107.33	38.27	2,12,123.51	38.28	2,36,915.01	37.79	1,21,068.58	35.99	1,57,192.32	39.02
	3.1 In Govt. Securities (a+b)		2,37,188.78	26.63	2,91,556.16	28.31	1,45,642.03	26.28	1,66,991.57	26.64	91,546.75	27.21	1,24,564.59	30.92
		a. In India	2,35,358.41	26.43	2,89,592.62	28.12	1,44,132.59	26.01	1,65,317.70	26.37	91,225.82	27.12	1,24,274.92	30.85
		b. Outside India	1,830.37	0.21	1,963.54	0.19	1,509.44	0.27	1,673.87	0.27	320.93	0.10	289.67	0.07
	3.2 In other approved Securities		23,521.23	2.64	22,318.71	2.17	15,966.52	2.88	15,065.56	2.40	7,554.71	2.25	7,253.15	1.80
	3.3 In non-approved Securities		72,482.08	8.14	80,232.46	7.79	50,514.96	9.11	54,857.88	8.75	21,967.12	6.53	25,374.58	6.30
4. Loans and Advances			3,54,071.19	39.76	4,14,627.96	40.26	2,24,818.43	40.57	2,64,237.43	42.15	1,29,252.76	38.42	1,50,390.53	37.33
	4.1 Bills purchased & discounted		27,872.87	3.13	34,124.56	3.31	16,088.07	2.90	17,953.87	2.86	11,784.80	3.50	16,170.69	4.01
	4.2 Cash Credit, Overdrafts, etc.		2,00,180.77	22.48	2,32,719.96	22.60	1,24,693.75	22.50	1,47,912.93	23.59	75,487.02	22.44	84,807.03	21.05
	4.3 Term Loans		1,26,017.55	14.15	1,47,783.44	14.35	84,036.61	15.16	98,370.63	15.69	41,980.94	12.48	49,412.81	12.26
5. Fixed Assets			10,019.73	1.13	10,456.26	1.02	7,126.45	1.29	7,411.10	1.18	2,893.28	0.86	3,045.16	0.76
6. Other Assets			57,717.59	6.48	57,860.11	5.62	31,667.21	5.71	37,029.00	5.91	26,050.38	7.74	20,831.11	5.17
Total Assets			8,90,600.05	100.00	10,29,769.59	100.00	5,54,205.72	100.00	6,26,892.12	100.00	3,36,394.33	100.00	4,02,877.47	100.00
Source:Balance sheets of respective banks

Table II.4: Consolidated Balance Sheet of Private Sector Banks
(Amount in Rs.crore)
Item		All Private Banks				Old Private Banks				New Private Banks
		As on March 31, 2000		As on March 31, 2001		As on March 31, 2000		As on March 31, 2001		As on March 31, 2000		As on March 31, 2001
		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		1,796.68	1.36	1,877.63	1.15	546.84	0.75	603.91	0.71	1,249.84	2.12	1,273.72	1.62
2. Reserves & Surplus		5,958.65	4.51	6,999.27	4.28	3,369.73	4.61	3,948.28	4.67	2,588.92	4.39	3,050.99	3.87
3. Deposits		1,10,038.63	83.33	1,36,666.66	83.65	63,357.08	86.64	73,746.28	87.17	46,681.55	79.21	62,920.38	79.87
	3.1 Demand Deposits	15,428.81	11.68	16,651.86	10.19	7,424.70	10.15	7,594.76	8.98	8,004.11	13.58	9,057.10	11.50
	3.2 Savings Bank Deposits	12,015.46	9.10	16,180.25	9.90	9,001.15	12.31	10,345.25	12.23	3,014.31	5.11	5,835.00	7.41
	3.3Term Deposits	82,594.36	62.55	1,03,834.55	63.55	46,931.23	64.18	55,806.27	65.96	35,663.13	60.52	48,028.28	60.97
4. Borrowings		6,863.13	5.20	8,519.00	5.21	1,821.22	2.49	1,942.23	2.30	5,041.91	8.56	6,576.77	8.35
5. Other Liabilities and Provisions		7,396.75	5.60	9,317.77	5.70	4,028.07	5.51	4,363.92	5.16	3,368.68	5.72	4,953.85	6.29
Total Liabilities		1,32,053.84	100.00	1,63,380.33	100.00	73,122.94	100.00	84,604.62	100.00	58,930.90	100.00	78,775.71	100.00
Assets
1. Cash and balances with RBI		10,206.33	7.73	10,732.70	6.57	6,362.48	8.70	5,783.83	6.84	3,843.85	6.52	4,948.87	6.28
2. Balances with banks and money at call and
short notice		10,280.91	7.79	12,571.98	7.69	4,941.59	6.76	6,157.93	7.28	5,339.32	9.06	6,414.05	8.14
3. Investments		49,225.58	37.28	62,037.05	37.97	25,712.37	35.16	30,007.96	35.47	23,513.21	39.90	32,029.09	40.66
	3.1 In Govt. Securities (a+b)	30,675.57	23.23	37,812.62	23.14	16,356.59	22.37	20,033.36	23.68	14,318.98	24.30	17,779.26	22.57
	a. In India	30,601.50	23.17	37,736.69	23.10	16,282.52	22.27	19,957.43	23.59	14,318.98	24.30	17,779.26	22.57
	b. Outside India	74.07	0.06	75.93	0.05	74.07	0.10	75.93	0.09	-	-	-	-
	3.2 In other approved Securities	1,239.19	0.94	1,262.82	0.77	1,195.15	1.63	1,177.29	1.39	44.04	0.07	85.53	0.11
	3.3 In non-approved Securities	17,310.82	13.11	22,961.61	14.05	8,160.63	11.16	8,797.31	10.40	9,150.19	15.53	14,164.30	17.98
4. Loans and Advances		54,195.73	41.04	68,058.44	41.66	31,927.50	43.66	37,972.82	44.88	22,268.23	37.79	30,085.62	38.19
	4.1 Bills purchased & discounted	9,884.39	7.49	11,027.34	6.75	4,443.74	6.08	4,996.77	5.91	5,440.65	9.23	6,030.57	7.66
	4.2 Cash Credit, Overdrafts, etc.	28,446.37	21.54	34,922.64	21.38	17,320.19	23.69	19,950.57	23.58	11,126.18	18.88	14,972.07	19.01
	4.3 Term Loans	15,864.97	12.01	22,108.46	13.53	10,163.57	13.90	13,025.48	15.40	5,701.40	9.67	9,082.98	11.53
5. Fixed Assets		2,972.01	2.25	3,469.07	2.12	1,333.35	1.82	1,433.73	1.69	1,638.66	2.78	2,035.34	2.58
6. Other Assets		5,173.28	3.92	6,511.09	3.99	2,845.65	3.89	3,248.35	3.84	2,327.63	3.95	3,262.74	4.14
Total Assets		1,32,053.84	100.00	1,63,380.33	100.00	73,122.94	100.00	84,604.62	100.00	58,930.90	100.00	78,775.71	100.00
Source: Balance sheets of respective banks

Table II.5: Consolidated Balance Sheet of Foreign Banks in India
(Amount in Rs.crore)
			As on March 31, 2000		As on March 31, 2001
Item			Amount	per cent	Amount	per cent
				to total		to total
1			2	3	4	5
Liabilities
1. Capital			2,404.83	2.90	2,669.99	2.62
2. Reserves & Surplus			5,674.47	6.85	6,289.25	6.18
3. Deposits			49,376.54	59.63	59,190.48	58.13
	3.1 Demand Deposits		10,638.24	12.85	11,895.95	11.68
	3.2 Savings Bank Deposits		4,831.78	5.83	5,629.03	5.53
	3.3 Term Deposits		33,906.52	40.94	41,665.50	40.92
4. Borrowings			18,852.39	22.77	26,817.61	26.34
5. Other Liabilities and Provisions			6,502.26	7.85	6,856.70	6.73
Total Liabilities			82,810.49	100.00	1,01,824.03	100.00
Assets
1. Cash and balances with RBI			3,929.89	4.75	3,904.44	3.83
2. Balances with banks and money at call and short notice			6,129.47	7.40	10,476.10	10.29
3. Investments			29,663.79	35.82	35,763.46	35.12
	3.1 In Govt. Securities (a+b)		18,659.19	22.53	23,310.52	22.89
		a. In India	18,659.19	22.53	23,309.52	22.89
		b. Outside India	-	-	1.00	0.00
	3.2 In other approved Securities		248.58	0.30	366.15	0.36
	3.3 In non-approved Securities		10,756.02	12.99	12,086.79	11.87
4. Loans and Advances			35,857.72	43.30	42,996.54	42.23
	4.1 Bills purchased & discounted		4,599.88	5.55	5,071.89	4.98
	4.2 Cash Credit, Overdrafts, etc.		15,196.58	18.35	18,104.66	17.78
	4.3 Term Loans		16,061.26	19.40	19,819.99	19.46
5. Fixed Assets			2,302.70	2.78	2,283.57	2.24
6. Other Assets			4,926.92	5.95	6,399.92	6.29
Total Assets			82,810.49	100.00	1,01,824.03	100.00
Source:Balance sheets of respective banks

2.14 During 2001-02 so far, (up to October 19, 2001), aggregate deposits recorded a growth rate of 9.0 per cent (Rs.86,682 crore) as compared with 9.5 per cent (Rs.77,160 crore) in the corresponding period of the previous year.