Improvement in overall net profit was bouyed by improved performance of the State Bank group, stated the Reserve Bank of India's (RBI) Report on Trend and Progress of Banking in India for 1999-2000. Share of the State Bank group in total net profits stood at 36.6 per cent (32.6 per cent). But, share of nationalised banks declined to 33.4 per cent (39.8 per cent) during the period. As for private sector banks, their share increased to 16.8 per cent (15.8 per cent) and that of foreign banks grew to 13.3 per cent (11.8 per cent).

Total income of SCBs increased by 15.3 per cent to Rs 1,15,386 crore (Rs 1,00,062 crore). Income of state-run banks also increased by around 15.3 per cent to Rs 90,900.4 crore (Rs 78,850.4 crore). Operating profits for the SCBs increased by 33.4 per cent to Rs 18,423.4 crore (Rs 13,810.7 crore), while that of state-run banks increased by 23.7 per cent to Rs 13,064 crore (Rs 10,560.8 crore). Old private sector banks recorded an increase of 80.4 per cent to Rs 1,428.9 crore (Rs 792.2 crore) in operating profit.

The ratio of interest income to total assets declined for all bank groups during the period. Interest income of SCBs grew by around 14 per cent to Rs 99,506.9 crore (Rs 87,312 crore); the State Bank group reported an increase of 25.1 per cent to Rs 29,186.7 crore (Rs 25,126.2 crore).

A compositional shift in some quarters of the banking operations has been experienced in favour of new private sector banks.

New private sector banks reported an increase in income to Rs 5,407.5 crore (Rs 4130.5 crore). Percentage-wise, a 30 per cent increase, which is the highest among all banking groups, has been recorded. This was followed by old private sector banks (18.9 per cent).

The new private sector banks also recorded the highest increase in operating profits at 81.8 per cent to Rs 1,243.3 crore (Rs 684.3 crore). New private sector banks recorded the highest percentage increase (25.1%) to Rs 4,429.2 crore (Rs 3,540.9 crore). Their expenditure also registered the maximum increase (29.6 per cent) to Rs 4,838.1 crore (Rs 3,733.4 crore), refecting overall growth in its operations. However, these banks experienced a setback on the net profit to total assets front: to 0.97 per cent from1.03 per cent. Provisions and contingencies of SCBs grew by 19.3 per cent to Rs 11,117 crore (Rs 9,320.4 crore). Among the banking groups, the new private sector banks again showed the highest increase of 134.8 per cent to Rs 674.4 crore (Rs 287.2 crore), followed by old private sector banks (61%) to Rs 773.8 crore (Rs 480.7 crore).