PSBs in a fix

Your editorial “The NPA Denouement” (June 29) has rightly highlighted the impact of additional provisioning to be made for the 12 large non-performing assets (NPAs) accounts where the Insolvency and Bankruptcy Code is to be invoked. Many PSBs already mired with the spiraling pool of NPAs had to bring down the provision coverage ratio below 50 per cent, against the desired level of 70 per cent. Many banks had to record a negative return on assets in FY16 due to additional provisions made after the asset quality review was introduced. In such depleted state of profitability, how many PSBs will