PSBs may report net profit of Rs 23k-37k crore

Date :15-Mar-2019

After four years of consecutive losses, the state run banks are likely to report a profit of Rs 23,000-37,000 crore in the next financial year, with their gross non performing loans declining to 8.1-8.4 percent by March 2020, says a report. In the last four years, with large capital infusion from the government, the state-run banks have been able to recognise and provide for their stressed assets with a steady decline in their gross NPAs (GNPAs) and net NPAs (NNPAs).

It also helped them in improving their capital ratios which also supported the exit of five PSBs from prompt corrective action (PCA) framework of the Reserve Bank of India. “PSBs are expected to report net profits even though overall profitability will remain weak with return on net worth (RoNW) of 4-6.3 percent,” rating agency Icra said.