Private Banks Narrow Gap with PSBs Private banks increased their loan market share to 40% by March 2025, narrowing the gap with PSBs, whose share fell to 52.3%. Total banking loans rose 78% in five years to ₹187.76 lakh crore. Deposit market share of PSBs declined to 57.3%, while private banks improved to 36.2%, indicating growing customer preference for private lenders.