PSBs’ share in banking system balance sheet slips to 54.9% in FY25: RBI report

The share of PSBs in total advances of SCBs increased to 56.2 per cent
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Public Sector Banks (PSBs) saw their contribution to the consolidated balance sheet of Scheduled Commercial Banks (SCBs) dip to 54.9% by March 2025, down from 55.2% a year earlier, according to the Reserve Bank of India’s latest banking sector review.

Private Banks (PVBs) also experienced a marginal reduction, with their share easing to 37.1% from 37.5% during the same period.

Conversely, Foreign Banks, Small Finance Banks, and Payments Banks collectively expanded their presence, increasing their combined share to 6.57% in FY25 from 6.07% in FY24. Within this group, Foreign Banks rose to 1.3% (from 1.19%), Small Finance Banks to 0.08%, and Payments Banks to 0.08%.

PSBs strengthened their position in credit deployment, capturing 56.2% of SCBs’ total advances. However, their share in deposits declined to 58.8% during the period under review. The RBI noted that Private Banks increased their reliance on deposits while reducing borrowings, whereas PSBs reported a drop in deposit contributions to their liabilities.

Meanwhile, Private Banks’ share in total advances decreased to 39.10% (from 40.02%), though their deposit base grew to 35.20% of SCBs’ total deposits.

Published on December 30, 2025