View source for Banking, India: I

=Corporate banking=
==2016-18: PSBs lose ground ==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F07%2F11&entity=Ar02013&sk=CF392E70&mode=text  July 11, 2019: ''The Times of India'']

[[File: Corporate banking, 2016-18- the relative share of private banks, SBI, other government owned banks and foreign banks.jpg|Corporate banking, 2016-18: the relative share of private banks, SBI, other government owned banks and foreign banks. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F07%2F11&entity=Ar02013&sk=CF392E70&mode=text  July 11, 2019: ''The Times of India'']|frame|500px]]

Nationalised banks are losing market share to private banks not just in deposits and credit, they are also rapidly losing their position as lead bank — the lender which calls the shots in lending to businesses — in many corporate relationships. While most corporates have multiple banking relationships, they can have only one bank which sets the terms and conditions for credit facilities.

According to report by Greenwich associates, HDFC Bank and SBI top the list as lead bankers for corporates. Each of these two banks is used for corporate banking services by roughly three-quarters (75%) of large Indian companies. Close behind is ICICI Bank, with a market penetration score of 71%. These three banks also secure the top spots among middle-market banking companies, with HDFC Bank in first place and ICICI and SBI tied in the No. 2 spot.

The report said that weak balance sheets and other immediate challenges like bad loans are preventing PSU banks from making long-term IT investments, which are needed to compete for wholesale banking business in the future. This comes at a time when needs of businesses are getting more complex and they are looking for value-added services. The loss of lead bank status has implications for retail businesses as well as many private banks offer attractive ‘salary account’ schemes for corporates where they are lead banks.

Among foreign banks, Standard Chartered Bank and Citibank are tied with a market penetration of 51–54% among large Indian corporates, followed by HSBC at 50%. In the middle-market space, among foreign banks, HSBC ranks first, StanChart second and Citi a close third.

The nationalised banks (PSBs excluding SBI) have been losing marketshare because almost half of them were placed under prompt corrective action (PCA) by the RBI last year.