IDBI Bank and 10 other banks under PCA near asset quality stability

The net interest income has shrunk sequentially since their loan book is growing at a slow pace or contracting in some cases

Eleven state-owned banks under Prompt Corrective Action (PCA) regime are inching towards gaining stable asset quality. Sequentially, the asset quality profile of these banks seems to be gaining some stability.

Their gross non-performing assets declined in the second quarter (Q2) over the first, indicating that pace of fresh slippages is slowing. Banks have also written off many bad loans for which they made 100 per cent provisions. 

Also, net NPAs and the amount of bad loans yet to be provided have also shrunk sequentially. The provisions for bad loans made in the second quarter were less compared to