Turnaround in bad loans not in sight yet for PSU banks

CARE Ratings has tabulated results of 30 banks, which have declared Q2, 2018-19 results. The focus was on trends in gross NPAs (non-performing assets) as a per cent of advances. There seems to be an improvement over the last two quarters. Tighter NPA recognition norms led to a surge in bad loans over the last two years. But overall NPAs have reduced and provisioning has also reduced in the last two quarters.

This group of 30 includes most large private and PSU banks including State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), Bank of Baroda, etc.