An enhanced degenerated shell finite element (FE), which has been developed for inelastic analysis of reinforced concrete structures is described in this paper. Generally, Reissner-Mindlin (RM) assumptions are adopted to develop the degenerated shell FE so that transverse shear deformation effects is considered. However, it is found that there are serious defects such as locking phenomena in RM degenerated shell FE since the stiffness matrix has been overestimated in some situations. As remedies of locking phenomena, reduced integration, incompatible mode and assumed strain method have been used. Especially, the assumed strain method has been successfully used in many FEs. But contrarily, there is a few investigation on the performance of the assumed strains in the inelastic analysis of concrete structures. Therefore, shell formulation is provided in this paper with emphasis on the terms related to the stiffness matrix based on assumed strain method and microscopic concrete material model. Finally, the performance of the present shell element is tested and demonstrated with several numerical examples. From the numerical tests, the present result shows a good agreement with experimental data or other numerical results.