Risky lending: Share of subprime borrowers higher at PSBs, shows data

The share of such loans declined between September 2020 and March 2022 in private banks and NBFCs but rose for public sector banks

The second quarter results of banks show that net profits for the industry increased 57 per cent annually. The private sector banks recorded a 64 per cent rise in profits, whereas the net profits of public sector banks jumped 50 per cent in this period.

A significant portion of this increase can be attributed to the rise in credit costs and a decline in non-performing assets (NPAs). A decline in provisioning coupled with a double-digit credit growth has contributed to the stellar performance, especially for the public sector, which until a few quarters ago was reeling under losses. Even though