Dear public sector banks, don’t uncork the bubbly just as yet
A close look at some of the banks' bad loan pile-ups will tell you that the party time has not yet arrived
What Rajiv Kumar, secretary, department of financial services in finance ministry, said last week on India’s public sector banks (PSBs) should be music to the ears of investors. The recovery of bad loans at PSBs has gained momentum in the June quarter; their operating profits have risen and the overall asset quality has improved. Besides, the provision coverage ratio of these banks has gone up to 63.8%, he has pointed out.