Over the past decade, public sector banks have lost major ground in deposits, with their share dropping from 76.3% to 56.3%. Private banks, by contrast, have steadily absorbed the shift, rising from about 20% to nearly 35%—suggesting a growing preference among depositors, especially wealthier customers.
More than $6 billion in fresh FDI has flowed into India’s private banks, including Yes Bank and Federal Bank, signaling renewed global confidence. Analysts point to improving credit quality, cost moderation, and early signs that private capex could be reviving. Together, these factors are fueling a more bullish outlook for the sector as investors re-rate growth and stability.
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