Unlike the previous years, banks appear to be hesitant in publishing their financial results of FY2014. Last year, there was keen competition among them to be among the first banks in publishing the year end data. During the first week of April 2013 itself some of them came out with full-page multi-colour ads. Most of them had enviable financial results to show.
This year many of them are not willing to show customers their slim bottom-lines (pun unintended). Only three banks, have published their annual results during the last week of April. As net profits of FY 2014 were lower than the previous year, the size of their
advertisements was reduced. One of them has settled for a quarter page. The youngest public sector bank, perhaps is the only bank, which went for a full-page black and white ad. Invariably the font size used in all the tables is small enough to deter the inquisitive reader from comparing the previous year’s data!
The spurt in NPAs is responsible for the poor performance of banks on the profit front. The increases in the gross NPA ratios have compelled all of them to make larger provisions. Banks alone cannot be blamed for this dismal picture of the banking sector; it is partly a replica of the economic scenario, particularly of the industrial sector, the major recipient of bank finances.