Private retail banks put up good show

Spike in provisions likely to be short-lived and could reverse for IndusInd Bank and YES Bank

Private sector banks, particularly those having a higher exposure to retail loans, continued to put up a strong performance in the March quarter (Q4). This is even as they complied with the Reserve Bank of India (RBI)’s directive to provide more loans for stressed sectors. The apex bank’s directive has led to private banks such as HDFC Bank, Axis Bank, IndusInd Bank and Yes Bank witnessing a surge between 66 per cent and 121 per cent in their provisions in the quarter compared to the same quarter a year ago. The surge in provisions, however, has failed to dent their