The banking scene in India is dominated by Public Sector and Private Sector Banks. The share of Private Sector Banks is increasing by every passing day.
Maharashtra state tops by a share of 25% (a quarter) of all Private Sector Bank loans. Maharashtra has the advantage of having the city of Mumbai, the economic capital of Mumbai. Mumbai works as the engine of all the banking activity in India. Apart from Mumbai, Maharashtra has many other business centres requiring high level of banking support. These cities are Thane, Pune, Nagpur, Aurangabad and Nashik. Apart from Industry, Mumbai is the hub of trade and services as well.
With 12% share, Tamil Nadu ranks at No.2 position of Private Sector Bank’s lending. Apart from the capital Chennai, Tamil Nadu has many other industrial centres such as Tirupur, Coimbatore, Erode, Salem and Hosur etc.
Karnataka, with 9% of lending share is at the third position. Bangaluru, the capital city which is also known as the Silicon Valley of India is a large industrial and service sector (especially IT) hub of the country. Mysuru and Mangalore are some other large economic centres of the state.
At the 4th position with 5% share are the states of Gujarat, Telangana, Andhra Pradesh, Kerala and Uttar Pradesh.
Delhi at 4% occupies the fifth position.
Again vying for the sixth position are the states of Rajasthan, Haryana, West Bengal and MP with 3% share each.
Punjab is with 2% and J&K with 1% are at the bottom.
The remaining states have shares lesser than 1% and are not discussed here.
This analysis also acts as a TRUE barometer of the industrial climate of a particular state. Private Sector Banks are more prudent lenders as compared to the Public Sector counterparts. Majority of these banks have their NPA numbers in check vis a vis their Public Sector counterparts and, hence, represent a truer picture of a balanced lending.