New Delhi, May 14 -- The shift in India's banking system has not come through disruption. It has come through accumulation. Over the past decade, private sector banks have increased their share of system deposits from roughly 21% to about 38%, reflecting a steady reallocation of financial intermediation toward institutions that have expanded with consistency rather than speed.

This change is visible in balance sheet growth. Between FY21 and FY25, deposits with private banks rose from about Rs.48 lakh crore to over Rs.85 lakh crore, an increase of roughly 76%. Over the same period, advances grew from approximately Rs.41 lakh crore to Rs.75 lakh crore, or about 85%. Credit growth marginally outpacing deposit growth indicates sustained dema...