PSU Banks’ results sustainable??
🌟In FY 22, PSU banks have performed very well in terms of quarterly results which is reflected by a positive momentum in the share price.
➡️ #BANKBARODA profits rose by over 59% YoY to Rs. 3,313 crores and net interest margins rose by 3.33%.
➡️ #UNIONBANK net profit increased by over 20% YoY to Rs. 1,847 crores and gross NPA was reduced by over 25%.
All in all, we witnessed a positive year from the PSU banks and they ended up giving a better return than #NIFTYBANK or #NIFTY50.
🌟But are these results sustainable?
➡️ PSU banks have been losing market share in CASA (current account and savings account) deposits which have become a growing concern over the past few months for these PSUs.
➡️ Impact of digitalization: It is fast approaching the banking industry and bankers are not sure whether PSUs are going to implement it and whether they have the resources and the product lines to do so.
➡️ What would be the government’s stance on the privatization of these PSU banks?
➡️ Introduction of CDBCs – with this introduction, there is a high chance that RBI may accept deposits under itself (people can open an account with the RBI, which is considered much safer), so how would that turn out for these commercial/PSU banks? Is this the end of the commercial/PSU banks?
