An Analysis of Bank Concentration in the Post Second-Generation Banking Sector Reform Period

The present research has made use of Concentration Ratio (CR5) to examine the degree of concentration of the nationalized banks during the post second-generation banking sector reform period (1999–2018). The study has identified Punjab National Bank, Bank of India, Bank of Baroda, Canara Bank and Union Bank of India as the top five nationalised banks which have accounted for approximately 47% share amongst the twenty nationalised banks in terms of total advances granted on an average during 1999 to 2018. The results further revealed that the Concentration Ratio has remained more or less stable during the same time period and it averaged out to be less than 50%, thereby reflecting low level of concentration and the presence of competitive banking structure as far as nationalised banks are concerned in India.