Indian banks: Five years after the global financial crisis

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The Indian banking system emerged unscathed from the global financial crisis of 2008, but the subsequent economic slowdown (barring 2009-10) has exerted pressure on banks' profitability and capital. Public sector banks, with a 70 per cent market share, were worst hit due to corporate borrowers' declining loan-servicing capacity, their own lax credit appraisal and and the undue advantage they took of the debt restructuring mechanism to defer non-performing asset formation. Private banks, cautious in expanding their balance sheets, fared well. While private banks have seen improvement in asset quality and efficiency parameters, public sector banks have seen declines in both areas. A comparison of how various categories of banks have performed since the crisis.