Private banks increased market share in total deposits while PSBs loses 600 bps over 5 years: UBI Report

New Delhi [India], : Private banks in India have been steadily increasing their share in total bank deposits over the last five years, while public sector banks have witnessed a decline, according to data shared by Union Bank of India.
The report highlighted that in March 2019, public sector banks held 63.2 per cent of the total bank deposits. However, by March 2025, their share fell to 56.3 per cent, a decline of around 600 basis points.
It stated "PVBs continue to increase market share in total deposits while PSBs lost approximately. 600 bps in share during the last 5 years"
During the same period, private banks increased their share from 28.6 per cent to 34.8 per cent. The share of other banks remained almost stable, ranging between 8.1 per cent and 8.8 per cent.
Private banks have seen higher growth in deposits than PSBs, even in rural and semi-urban areas, which were earlier considered strongholds of public sector banks.
The report also said that absolute deposit accretion slowed in FY25, but PSBs managed to capture a higher share of the incremental market.
There are clear regional differences in deposit patterns. In metro areas, the market share of private banks in total deposits is now nearly equal to that of PSBs.
While PSBs still lead in CASA deposits in rural and semi-urban regions, private banks are gradually increasing their share in these areas.
Private banks have already captured a major share of CASA deposits in metro regions and are also gaining ground in urban centres. Private banks are growing faster in urban areas compared to PSBs.
Although PSBs recorded higher growth in current accounts in metro regions, private banks had better overall deposit growth, mainly driven by term deposits.
The report also pointed out that the CASA ratio of private banks is falling at a faster pace than that of PSBs across all regions.
When it comes to year-on-year deposit growth, private banks continue to perform better. In March 2024, private banks saw the highest growth at 20.1 per cent, while PSBs posted a lower growth of 9.4 per cent.
This trend continued in March 2025, with private banks recording 12 per cent growth, compared to 9.3 per cent for PSBs and 10.3 per cent for scheduled commercial banks .
This data indicated that private banks are attracting more deposits and steadily expanding their presence, while public sector banks are losing their earlier dominance in the Indian banking sector.
This article was generated from an automated news agency feed without modifications to text.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Hindustan Times

35 minutes ago

• Hindustan Times

Real estate institutional capital flows expected to decline by 37% to $3.06 bn in H1 this year: JLL

Institutional investments in the Indian real estate market are expected to touch $3.06 billion across 30 deals in H1 2025, reflecting a 37% year-on-year decline, according to JLL. Investment transactions are experiencing extended timelines due to the challenging international economic conditions and political uncertainties. Real estate institutional capital flows expected to decline by 37% to $3.06 bn in H1 this year: JLL. (Photo for representational purposes only)(Pixabay) Despite this moderation, the real estate market demonstrates fundamental resilience, it said. In comparison, the January–June period of 2024 saw investments of $4.89 billion. Foreign investors' share in total institutional investments in Indian real estate is 68 per cent, while domestic players infused 32 per cent during the first half of the 2025 calendar year. In the past, the Americas have consistently been the highest contributors to investments. However, since 2023, there has been a significant decline in the share of investments from institutions domiciled in the USA and Canada. H1 2025 witnessed APAC lead with 37% share, the report said. MMR and Bengaluru attracted almost half of the total investments Geographically, MMR and Bengaluru collectively attracted 54% of the total real estate investments during the first half of 2025, establishing themselves as the dominant investment destinations in the country. This slowdown follows an exceptional CY 2024, which saw investments reach a historic peak, marginally surpassing the previous record of $8.4 billion set in 2007, the report said. Institutional investors continue to participate through public market channels including REITs, QIPs, and investments in listed entities. The standout transaction of 2025 has been Blackstone's significant entry into India's residential real estate sector with approximately $214 million invested to acquire up to 66% of Kolte-Patil Developers, it noted. 'India's real estate sector remains a compelling investment destination, buoyed by both domestic and international confidence despite global economic uncertainties having presented short-term challenges in the first half of 2025. A robust pipeline of deals exceeding $1 billion points to sustained activity ahead," said Lata Pillai, senior managing director, and Head of Capital Markets, India, JLL. While foreign institutional capital continues to dominate, domestic institutional participation has surged since 2023, now capturing 32% market share in H1 2025. Foreign Investors continued to take the centre stage accounting for 68% share of investments, the report said. Residential sector leads with 38% share of total capital flows 'Residential sector leads marginally at 38% share of the total capital flow, marking a notable shift from the historical office sector preference. Within residential investments, equity strategies command 58% of capital flows in H1 2025, (debt instruments accounting for 42%), extending the equity-focused approach that gained momentum in 2024," said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Indian Express

40 minutes ago

• Indian Express

F, M, and J visa applicants to US must make social media accounts public, says Indian embassy

The United States Monday announced a new requirement for all individuals applying for F, M, or J non-immigrant visas: they must adjust the privacy settings on all their personal social media accounts to 'public'. The move is aimed at enhancing national security through more thorough vetting procedures. 'Every visa adjudication is a national security decision. Effective immediately, all individuals applying for an F, M, or J non-immigrant visa are requested to adjust the privacy settings on all of their personal social media accounts to 'public' to facilitate vetting necessary to establish their identity and admissibility to the United States,' the US Embassy in India (@USAndIndia) said in a post on X. In a follow-up slide in the same post, the embassy noted that the US has already been requiring all visa applicants to provide social media identifiers on both immigrant and non-immigrant visa forms. It added that this data is used in visa screening and vetting processes to identify those who may pose a threat to US national security and would therefore be deemed inadmissible. Effective immediately, all individuals applying for an F, M, or J nonimmigrant visa are requested to adjust the privacy settings on all of their social media accounts to public to facilitate vetting necessary to establish their identity and admissibility to the United States… — U.S. Embassy India (@USAndIndia) June 23, 2025 The change comes amid the imposition of a new travel ban by the US government, which now completely restricts citizens from 12 countries and partially restricts those from seven others. These restrictions cover access to non-immigrant visas, including those for tourism, education, and employment, and are primarily aimed at countries in the Middle East and Africa considered high-risk for security and terrorism-related concerns. However, Indian nationals are not affected by the new travel ban. Despite ongoing tensions in parts of the Middle East, the US has clarified that India is not on the list of countries facing the restrictions. Applications from Indian citizens across categories, including B1/B2 tourist visas, H1B work permits, and F1 student visas, continue to be processed. India, now the largest source of international students in the US for the first time since 2008-09, had over 3.31 lakh students enrolled in American universities in 2024, overtaking China.

Time of India

an hour ago

• Time of India

London emerging as top global destination for Indian tech startups from tier two cities

Live Events Indian entrepreneurs from tier two cities like Chandigarh, Kochi, and Coimbatore, among others, are increasingly tapping the UK as a prominent destination for tech talent and raising venture just the first two months of the new financial year, nine Indian firms have already set up base in London, following 23 in 2024 and 31 in 2023, according to London & Partners, a public-private international trade body. Meanwhile, fresh investments by existing Indian companies like Paytm Mphasis , and WNS are also fuelling the tech ecosystem in the UK capital.'London's appeal as a premier destination for Indian tech companies is driven by three key factors: access to customers, talent, and funding,' Hemin Bharucha, chief representative, Mayor of London, and regional director - India & Middle East, London & Partners – a public-private trade body, told ET. 'India has now been London's top source of investment for three years in a row.'He added that even entrepreneurs from tier two cities like Kochi, Chandigarh, and Coimbatore are increasingly investing in London, seeking access to venture capital and top 2023, Indian firms accounted for 29% of all inward investment projects in the city—more than any other country, data showed. Over the past decade, these companies have generated over 7,800 jobs in London mid-sized IT services leader, Mphasis, announced the opening of its Innovation Centre in London to focus on advanced technologies such as quantum computing , quantum cryptography, and AI. It is a part of Mphasis' broader expansion in the UK, a market where it already serves around 60 clients, primarily in the financial services sector.'For Mphasis, London presents a truly compelling advantage as a vibrant innovation hub,' said Ashish Devalekar, executive vice president and head of Europe, Mphasis. 'Its unique combination of world-class talent, a forward-thinking regulatory environment, and strategic access to both European and global markets made it the ideal location for our innovation hub.'Mphasis plans to double its UK workforce over the next three years, it said in September last enterprise IT services provider BCT Consulting said it is targeting a revenue of £100 million over the next decade from the region. The company, which is present in 20 countries, plans to establish a centre of excellence (CoE) in London and create over 300 jobs.'As a global company driven by innovation, expanding into the UK, particularly London, was a natural step for us,' said Sundar Padmanaban, executive vice president - UKI & Europe, BCT Group. 'From healthcare to financial services, we see London not just as a growth market but as a hub for co-creating future-ready solutions with our clients,' he Thornton's 2024 report revealed a record 971 Indian-owned businesses now operate in the UK, including 505 in London. The Technology, Media, and Telecom (TMT) sector leads the charge, with these companies collectively employing 118,430 people across the UK and generating £68.09 billion in revenue, up from £50.5 billion the year recently signed India-UK Free Trade Agreement (FTA) is expected to further accelerate cross-border investment and innovation. 'The FTA is a landmark moment, it reduces tariffs, facilitates talent movement, and expands market access,' Bharucha India-UK tech corridor is poised to emerge as a global model for collaboration, one that drives innovation and creates high-value jobs, he added.