 "Analysts cautious on top 3 private banks")
Weakening growth in loans or credit, continued stress on asset quality and cuts in lending rates have impacted profitability at banks, both in the private and public sector.
Public sector banks' (PSBs') problems are more structural and will resolve only when they become self-sustained, especially the mid and smaller ones. Large private banks seem to be faltering on a key strength, their hitherto healthy pre-provisioning operating profits. Growth in this metric has been coming down over the past two quarters for most of the large ones (see table).
While the drop in the latest December quarter could be attributed partly to demonetisation and
