The aggregate provision by the public sector (PSU) banks fell by 27% year-on-year due to a sharp double digit drop reported by
, , Canara Bank, and Bank of Baroda. On the other hand, private sector banks reported 51% jump following a sharp increase reported by HDFC Bank, Kotak Bank, Bandhan Bank and . As a result, their share in the total NPAs increased to 42.5% from 26.1% in the year-ago quarter.
The total sample’s net interest income (NII) increased by 4.8% year-on-year to Rs 1.2 lakh crore. A majority of the banks, 20 to be precise, reported higher net interest from the year-ago level. The share of the private banks in the sample’s net interest expanded to 43.8% from 41.7% a year ago.
The sample’s cumulative COVID provisioning increased to Rs 34,641.5 crore in the June quarter from Rs 29,892.8 crore in the previous quarter. Here, the share of PSU banks increased to 34.7% from 26.7% sequentially.
| June ’20 | September ’20 | December ’20 | March ’21 | June ’21 | |
| Loan loss provision (Rs crore) | 39504.8 | 33896.1 | 28828.5 | 65542.2 | 36805.4 |
| Loan loss provision (YoY % change) | -17.0 | -11.0 | -59.6 | 19.5 | -6.8 |
Share of PSU banks in quarterly provisioning (%)
| June ’20 | September ’20 | December ’20 | March ’21 | June ’21 | |
| PSU share (%) | 73.9 | 77.5 | 63.7 | 66.4 | 57.5 |
| Non-PSU share (%) | 26.1 | 22.5 | 36.3 | 33.6 | 42.5 |
Data for a sample of 28 banks. Source: Bank data, ETIG
