Time running out for PSBs

Business is rapidly shifting to private banks

The Indian banking sector is showing signs of a turnaround after many years. The latest “Report on Trend and Progress of Banking in India 2018-19”, released this week by the Reserve Bank of India, showed that the overhang of stressed assets has declined and fresh slippage in assets quality got arrested. Consequently, the consolidated balance sheet of scheduled commercial banks expanded at a higher pace for the first time since 2010-11. Further, the financial performance of the banking system improved and public sector banks (PSBs), after a gap of three years, reported profits at the net level in the first