A year-and-a-half ago, the Reserve Bank of India’s (RBI) asset quality review revealed the ugly underbelly of public sector lenders and showed private sector banks have been more prudent and smart.
Six quarters later, the three-monthly results show private lenders also had an ugly underbelly; they just didn’t expose it.
Private sector banks on an aggregate basis saw their bad loan stock rise 10% on both gross and net basis. Their public sector counterparts reported less than a 1% rise. To be fair, some private sector lenders were better off than everyone and some public sector lenders were the worst performers.
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