Good show by private banks, better by PSBs

Whether it is net profit, fee income or bad loans, public sector banks have put up a better show in the June quarter than their private peers

In March 2021, the gross non-performing assets (GNPAs) of the Indian banking system were 7.5 per cent of advances. After setting money aside for provisions, the net NPAs (NNPAs) were 2.4 per cent. Most of the banks could stomach the impact of the Covid pandemic with a brave face in a year when the economy had shrunk and the loan portfolio grew at a record low of 5.6 per cent even as the regulator had frozen repayment of loans for months and allowed banks to restructure loans.
 
The Reserve Bank of India’s latest Financial Stability Report estimates that banks’