Reform PSBs

Time is up for directed lending approach

The state of India’s public sector banks (PSBs) has improved in recent quarters. Gross non-performing assets (GNPAs), for instance, have come down from 14.6 per cent in March 2018 to 11.3 per cent in December 2019. The number of PSBs under the Reserve Bank of India’s (RBI’s) prompt corrective action has dropped to four, and 12 reported profits in the first nine months of the current financial year. The provision coverage ratio has also improved. Some of these indicators suggest that the worst may perhaps be over for PSBs as a group. However, they still have a long way to