Will the dream run continue for banks?

As the war for deposits escalates, the cost of money will rise and banks' NIM will be under pressure. Also, a few banks may invite trouble by aggressively growing their retail books without necessary

On November 7, Finance Minister Nirmala Sitharaman tweeted: “The continuous efforts of our govt for reducing the NPAs & further strengthening the health of PSBs are now showing tangible results. The 12 PSBs together declared net profit of Rs 25,685 crore in Q2FY23 & total Rs 40,991 in H1FY23, up 50% & 31.6%, respectively (y-o-y).”
 
Public sector banks (PSBs) have never had such a stellar performance. UCO Bank’s net profit in the September quarter is 146 per cent higher than the year-ago quarter. For Bank of Maharashtra, the rise is 103 per cent.
 
These are relatively small banks.