Despite a robust 11.7% year-on-year surge in credit growth led by retail, agriculture, and MSME lending, public sector banks saw their collective net profit dip 1.5% in the September quarter when adjusted for a one-time gain by State Bank of India, due to weaker treasury income and muted recoveries.

Out of the 12 public sector banks, Bank of Baroda and Union Bank of India reported a year on year fall in net profit during the quarter ended September due to fall in other income and lower recovery from written off accounts.

After seeing high double-digit growth for four quarters, other income stood at 8.4% on year in July-September, this was mainly attributable to weaker treasury income.

SBI was an exception, simply because it completed the divestment of 13.18% stake in YES Bank to S

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