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Loan recoveries, upgrades improve for a few public sector banks

Union Bank, PNB & SBI witnessed improvement, but fresh addition to non-performing assets remains high

Loan recoveries, upgrades improve for a few public sector banks

India’s top six public sector banks (PSBs) in terms of asset size put up a mixed show on the loan recoveries and upgrades front in the June 2016 quarter (Q1). Recoveries of bad and doubtful debts and upgrades from bad/doubtful loans to standard loans reflect an improvement/uptick in asset quality of banks. But, unless there is sustained improvement in this metric, it may not heal the huge asset quality pain of banks. Most banks have stepped up their focus on ramping up loan recoveries. The numbers, though, indicate that only a few banks have managed to deliver positive results on ...