12 per cent increase in the share of private banks in banking sector lending

MUMBAI: The country's private sector banks accounted for 2.50 per cent of total lending in the last financial year on the back of accelerated growth in credit growth. In the 2016-17 financial year, the share was 4.50 per cent, according to RBI data. The lending share of private banks has increased by 12 per cent in the last five years.

Private sector banks are seeing higher loan growth compared to other banks. Five years ago, their share of total lending was 4.50 per cent.

Lending to private sector banks grew by 8.10 per cent in the last fiscal. Among public sector banks, the figure was 8.50 per cent. Lending by foreign banks declined by 2.50 per cent, compared to a growth of 3.50 per cent in FY2017.

In the last financial year, the overall growth rate of lending in the banking sector in the country was 4.50 per cent as against 7.50 per cent in the financial year 2015-16. Lending has been slow due to Corona's impact on the country's trade and industry.

The data also shows that 3% of the total lending in the banking sector is done through urban bank branches.

Meanwhile, banks have so far disbursed 50 per cent of their loans under the Rs 5 lakh crore credit guarantee scheme announced last year for small businesses affected by the corona, according to a Crisil report.

Under the scheme, banks have released Rs 7.5 lakh crore. To provide benefits to more segments of the scheme, the government on Monday increased its limit by an additional Rs 1.50 lakh crore.