Excluding the five large banks, of which the largest bank is government owned, there are around 20 banks among the remaining 35 banks, which together hold a mere 9 percent share in the banking system.
While large banks are improving their performance and converging on bottom-line performance indicators under increased competition, small banks are gradually losing ground because of the lack of scale and operational efficiency. Enhanced competition and the need to substantially grow the lending portfolio to remain commercially viable would eventually pose problems of existence for small banks.