PSBs outsmart their private sector counterparts: Assocham Study

Public sector banks (PSBs) have outstripped their private sector counterparts and were able to maintain their dominance over private banks in recent times amid global meltdown hampering the global financial landscape, according to an Assocham study.

The report highlights that PSBs have not only succeeded in lowering lending rates with maintaining record growth of net profits, but also drastically reduced their non-performing assets (NPAs) compared with private banks.

The PSBs reduced their prime lending rates by 75-125 basis points, higher than the 50-75 basis points cut made by private banks, their credit growth has surpassed the latter at 28.6% as compared to a meager 11.8% growth registered by private banks.