Private banks score over public sector peers in 2012-13

Banking business in India grew 15 per cent in 2012-13 compared with 17.6 per cent in 2011-12 as real GDP growth decelerated from 6.2 per cent to 5 per cent.

The extent of corrosion in business growth can be appreciated if we consider the growth of the real economy and banking business in the preceding year. The business growth was as high as 25.7 per cent in 2010-11 when growth registered a sturdy 9.3 per cent. The numbers reinforce the notion that behaviour of the banking business mirrors the performance of the real economy

The deceleration in business growth in 2012-13, however, has not been uniform across the banking spectrum. Banks in India can be classified into two broad composite categories — public sector banks and private banks.

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