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Poor performance by public sector banks, says RBI report

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9 years ago

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Reserve Bank of India New Delhi. Photo: UNI

[vc_row][vc_column][vc_column_text]The private sector banks and foreign banks earned net profits, but the public sector banks incurred a loss of Rs 180 billion

Parsa Venkateshwar Rao Jr[/vc_column_text][vc_column_text]The growth in the banking sector for 2015-16—according to RBI’s “Report on the Trend and Progress of Banking in India 2015-16”—fell to 7.7 per cent in 2015-16, from 9.7 per cent in 2014-15.

As the banks, especially the public sector ones, had to provide for the “delinquent loans”, the credit and advances, which is an indirect marker of economic activity, fell to a dismal 2.1 per cent in 2015-16 from 7.4 per cent in 2014-15.

Interestingly, the Current Account and Savings Account (CASA) deposits with private sector banks as well as foreign banks grew better than those with the public sector banks.  The growth of CASA deposits with private sector banks jumped to an impressive three per cent—from over 16 per cent to over 19 per cent.

While the Credit-Deposit (C-D) ratio of the banking sector as a whole remained static at 78 per cent, the C-D ratio of the private sector banks stood at 90.3 per cent.

The banking sector on the whole showed declining earnings on interest and non-interest incomes. It was mainly due to slowdown in the growth of credit. Though the sector is not in the red, profits fell by 60 per cent. The private sector banks and foreign banks earned net profits, but the public sector banks incurred a loss of Rs 180 billion, and net losses amounting to 148 per cent.

But the priority sector lending—which includes weaker sections, small and medium enterprises, agriculture and housing— showed a marked improvement, increasing from 9.3 per cent in 2014-15 to 16 per cent in 2015-16. The target for the priority sector lending was 40 per cent. The public sector banks achieved 39.3 per cent, private sector banks logged 45.1 per cent and foreign banks showed 35.3 per cent.

The recovery of non-performing assets (NPAs) for all the banks fell from Rs 307.92 billion in 2014-15 to Rs 227.68 billion in 2015-16. The public sector banks could recover only Rs 1,897.57 billon in 2015-16, compared to Rs 278.49 billion the previous year.

The report notes that recovery was better through the Lok Adalats and Debt Recovery Tribunals (DRTs) than through the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) channel. The recovery through SARFAESI reduced from Rs 256 billion in 2014-15 to Rs 131.79 billion in 2015-16.

Despite a slowdown in credit growth, the loan portfolio reveals an interesting profile. Loans in the housing sector accounted for 52 per cent, up by 16.4 per cent over the previous year, followed by personal loans, 29.8 per cent, which include educational loans, while auto loans stood at 11.1 per cent.

Meanwhile, the credit sensitive sectors, including capital and real estate, accounted for 20 per cent of the loans. Foreign banks lent 27.7 per cent, which is more than private banks, which stood at 26.3 per cent. The public sector banks loans in this sector were the lowest, at 16.9 per cent. An overwhelming chunk of the loans, 92.5 per cent, in this segment went to the real estate.

The ownership pattern of the banks shows that while the government maintains a majority stake in the public sector banks, 51 per cent, the non-resident shareholding in the PSBs, 11.9 per cent, contrasted with 72.7 per cent in the private sector banks.

Lead Picture: Reserve Bank of India New Delhi. Photo: UNI[/vc_column_text][/vc_column][/vc_row]

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PM Modi pays tribute to Atal Bihari Vajpayee at Sadaiv Atal, says leadership is defined by conduct

PM Modi paid tribute to Atal Bihari Vajpayee at Sadaiv Atal, saying true leadership is defined by conduct and values, not by position.

Published

17 hours ago

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December 25, 2025

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PM Modi pays tribute to Atal Bihari Vajpayee at Sadaiv Atal, says leadership is defined by conduct

Prime Minister Narendra Modi on Thursday paid floral tributes to former Prime Minister Atal Bihari Vajpayee at the ‘Sadaiv Atal’ memorial in New Delhi on the occasion of his 101st birth anniversary. Remembering Vajpayee’s legacy, the Prime Minister said that true leadership is not established by position, but by conduct.

Several dignitaries were present at the memorial to pay homage to the former Prime Minister, who remains one of the most respected figures in Indian politics.

PM Modi remembers Vajpayee’s conduct and values

In a message shared on social media platform X, Prime Minister Modi described Atal Bihari Vajpayee as a statesman whose behaviour, dignity and unwavering commitment to national interest set a benchmark for Indian politics. He said Vajpayee’s life continues to inspire the nation and highlights that leadership is determined by character rather than authority.

The Prime Minister also shared a Sanskrit verse, noting that the actions of great leaders guide society, and said this principle was clearly reflected throughout Vajpayee’s public life.

‘Nation always came first for Atal ji’

Prime Minister Modi further said that Vajpayee’s birth anniversary is an opportunity for everyone to draw inspiration from his life. He highlighted Vajpayee’s conduct, grace, ideological firmness and resolve to place the nation’s interest above all else as an ideal standard for public life.

Through his life and work, Vajpayee demonstrated that excellence and greatness are shaped by values and conduct, not merely by holding office, the Prime Minister said. The remarks were shared with inputs from media.

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Cried over Gaza, not a word on Bangladesh: Yogi Adityanath attacks opposition in UP Assembly

Yogi Adityanath criticised the opposition in the UP Assembly, accusing them of selective outrage over Gaza while remaining silent on violence against Hindus in Bangladesh.

Published

17 hours ago

on

December 25, 2025

By

Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday launched a sharp attack on the Opposition during proceedings in the State Assembly, accusing rival parties of indulging in selective outrage and appeasement politics while remaining silent on incidents involving Hindus in neighbouring countries, particularly Bangladesh.

Referring to recent incidents across the border, the Chief Minister said the Opposition raises its voice on international issues selectively but avoids speaking out when minorities, especially Hindus, are targeted in nearby nations.

“You shed tears over developments in Gaza, but not a single word comes out when a Dalit youth is killed in Bangladesh,” Adityanath said in the Assembly, alleging that such silence exposes the Opposition’s political priorities.

The Chief Minister further claimed that incidents of violence against Hindus would not have occurred had Pakistan and Bangladesh not been created, reiterating that issues are often viewed through the prism of vote bank politics. He said candle marches are organised for global events, but killings of Hindus in Pakistan or Bangladesh do not evoke similar responses.

Adityanath also called for a condemnation resolution in the Assembly, stating that it should ideally come from the Leader of the Opposition. He said such a resolution should clearly condemn the killing and convey a warning to the Bangladesh government.

Allegations over illegal immigration

Targeting the Opposition on the issue of illegal immigration, the Chief Minister alleged that they support Bangladeshi nationals and Rohingyas. He claimed that when authorities take action to expel illegal immigrants, Opposition leaders come out in their defence, alleging that many of them have been facilitated with voter registrations and Aadhaar cards.

Meanwhile, tensions between India and Bangladesh have been visible following recent developments. India summoned the Bangladesh High Commissioner for the second time in a week amid concerns arising from incidents in the neighbouring country.

The summons came in the backdrop of protests in Bangladesh following the killing of student leader Sharif Osman Hadi and the lynching of Dipu Chandra Das in separate incidents. Dipu Das, a 27-year-old youth from Mymensingh district, was beaten to death by a mob over alleged blasphemy on December 18, and his body was later set on fire, triggering widespread outrage.

The Interim Government of Bangladesh condemned the incident. Education Adviser C R Abrar visited the bereaved family on behalf of the government, expressed condolences, and assured them of financial and welfare assistance. The Office of the Chief Adviser also reiterated its resolve to protect all citizens and ensure justice in the case.

The killing has once again raised concerns at the international level over the safety and security of minorities in Bangladesh, with minority groups demanding strict action against those responsible.

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Christmas 2025 wishes for WhatsApp and Instagram status to share joy and warmth

From faith and kindness to love and joy, here are simple Christmas 2025 wishes you can use as WhatsApp and Instagram status messages.

Published

18 hours ago

on

December 25, 2025

By

Merry christmas

As Christmas 2025 is being celebrated across the world, people are marking the occasion by sharing warm messages with family, friends and loved ones. The festival commemorates the birth of Jesus Christ and is observed as a time of faith, kindness and togetherness. Along with prayers, gifts and festive meals, social media platforms like WhatsApp and Instagram have become popular spaces for expressing Christmas greetings.

Christmas is traditionally associated with reflecting God’s love through generosity and compassion, while also strengthening bonds with close ones. Many people choose short, meaningful lines as their social media status to capture the spirit of the day and convey goodwill.

Here is a curated list of loving Christmas 2025 wishes that can be used as WhatsApp or Instagram status messages on the joyful occasion:

  1. Merry Christmas! May your day be filled with love, laughter and your favourite moments.
  2. Wishing you a Christmas as bright and cheerful as your smile.
  3. May your heart be full of joy and your home be filled with love this Christmas.
  4. Sending warm Christmas wishes with a touch of festive magic.
  5. Merry Christmas! May peace and happiness surround you today.
  6. It’s the most wonderful time of the year. Wishing you a Merry Christmas.
  7. May the spirit of Christmas bring love to your heart and warmth to your home.
  8. Wishing you a Christmas that is merry, bright and full of cheer.
  9. May your Christmas be rich with laughter, love and cherished traditions.
  10. Sending love, joy and the warmest Christmas wishes your way.
  11. Merry Christmas! Celebrate the day with family, friends and good food.
  12. Wishing you a Christmas filled with magic, wonder and joy.
  13. May the joy of Christmas stay with you throughout the year.
  14. Wishing you a Christmas as special as you are.
  15. Merry Christmas! Wishing happiness and good fortune always.

These short messages reflect the essence of Christmas 2025 and can be easily shared as status updates to spread positivity and festive warmth.

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