The present scenario is an indicative that private sector banks are outruling their public sector peers in terms of asset quality. Rising level of non performing assets (NPA) has been hitting hard on public sector banks (PSBs) since quite some time now.
In the second quarter of this fiscal, the largest lender of the country, State Bank of India posted a 12% dip in net profits and a consecutive surge in NPA level.
On the contrary, private peers like ICICI Bank and HDFC Bank showed a 22% and 31% respective rise in their net profit levels and also improvement in their NPA level.
While NPA level of ICICI Bank dropped to 0.90% from 0.91% earlier, SBI's NPA level stood at 2.04% from 1.61% earlier.