PSBs Q4 preview: Bond yields may dent treasury income; asset quality eyed

Analysts are bullish on the PSBs' bottom lines on the back of favorable base on NII, a seasonally higher fee quarter, and some recoveries from Bhushan Power

Public sector banks (PSBs) may surprise the Street with a healthy March quarter (Q4FY21) numbers as muted earnings in the previous year, lower provisioning in this quarter, and resolution of key accounts may support the earnings, say analysts. However, relative to their private peers, PSBs may have to take a sharper knock as regards the refund of interest on interest (loan moratorium case), which may dent their net interest income (NII), they fear.

At the bourses, the Nifty PSU Bank index has outperformed on the NSE by surging 23 per cent during the quarter under review as against a 5