PSBs' share of NII estimated to rise to three-year high of 39.3% in FY18

8 leading PSBs are expected to report NII of Rs 1,567 billion during FY18, up from Rs 1,286 billion in FY17

After consistently losing market share to private sector banks and non-banking finance companies (NBFCs) for nearly a decade now, top public sector banks (PSBs) are expected turn the corner and report a year-on-year (y-o-y) improvement in their share of overall lending market.

PSBs’ combined share of the total net interest income (NII) of the banking sector is estimated to increase by nearly 300 basis points (bps) to a three-year high of 39.3 per cent in 

FY18 from a record low of 36.4 per cent a year ago, brokerage estimates said.

This would be the first y-o-y increase in PSBs’ market