According to a recent press report the Reserve Bank of India’s quarterly data, has said that SBI group’s share in deposits fell to 21.6 per cent in March 2011 from 22.5 per cent at the end of 2010. Government-owned banks improved their share in deposits from 51.9 per cent to 53 per cent.
Reports said that SBI Groups did not insistently concentrate in raising deposit rates in 2010-11which resulted in slippage of market share. The market share in gross credit also slipped to 22.1 per cent from 23.1 per cent a year before whereas public sector banks raised their share to 52.8 per cent from 52 per cent at the end of March 2010.
Reports added saying that the shift to a base rate regime in July 2010 impacted the short-term loan business. According to the new regime, banks were barred from lending below the base rate, unlike before when banks could offer short loans linked to the Mumbai Interbank Offered Rate (Mibor), often below the benchmark prime lending rate (BPLR).
A SBI official said that due to excess liquidity in the system, the interest on short-term loan rates often ruled below BPLR.