Private banks are better money managers, state-owned lenders grow faster

They witnessed higher gains from parking funds with RBI and income from investments; as rates rise, space for both would shrink

Analysts believe 2021-22 was the best fiscal year for banking in the country. Both public sector and private banks witnessed profits rise and an improvement in net interest margins. Public sector banks saw higher growth than private sector banks, albeit on a lower base, and gross non-performing assets declined across all banks.

Like the Chinese saying “a crisis is an opportunity riding a dangerous wind”, banks made sure that even though credit growth remained muted during the pandemic, they could come out stronger.

A Business Standard analysis found that even though public sector banks’ profits grew faster than their private sector counterparts,