PNB scam and banking crisis: NPAs soared, profits plunged for banks

The gross NPA ratio of the industry was at 10.32% (Rs 8.86 trillion) by the end of December 2017 quarter

The financial year 2017-18 started on a great note for the Indian banking. State Bank of India (SBI) broke into global top 50 after merging with itself five of its associate banks. By the fourth quarter of the fiscal year, however, Punjab National Bank was left with nearly Rs 140-billion fraud perpetrated by jeweller Nirav Modi.

On the other hand, yields on 10-year government securities also saw sharp swings, falling from 7.47 per cent in April 2017 to 6.19 per cent in November last year and back to 7.4 per cent levels now. Banks, especially public sector ones, saw a