New private banks outshine nationalised banks in 2011-12.

Byline: Biswa Swarup Misra

Overall economic growth has dipped from 8.5 per cent in 2010-11 to 6.5 per cent in 2011-12.

The slowdown has impacted the business growth of the banking system.

Excluding window dressing by banks, deposits and advances grew 13.4 per cent and 17 per cent in 2011-12 respectively compared to 15.9 per cent and 21.5 per cent in 2010-11. In such a scenario how have the nationalised banks (NBs) and new private banks (NPBs) fared?

Business Growth: Business growth can be seen from the perspective of deposits and advances. The NPBs were more aggressive than NBs both on both deposit mobilisation and credit disbursement.

Compared to a 15 per cent growth for NBs, deposits of NPBs grew …