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In the December quarter, public sector banks (PSBs) collectively recorded the highest ever net profit. The net profit of all listed banks, Rs 44,733 crore, was also a record high. If early indications are anything to go by, the March quarter will probably be even better for the Indian banking industry.
As the banks are busy crunching numbers for their FY22 balance sheets, let’s take a look at how they are doing on different parameters — some of the finer aspects of the banking system’s health to gauge which banks are on the growth path and which aren’t, based on their December quarter earnings.
First, the net interest margin, or NIM. This three-letter word, the difference between what a bank