The PSU banks continued to show a sustained improvement in the September quarter. At the aggregate level, the provisioning for bad loans or loan loss provisioning for the 12 listed PSU banks fell to Rs 16,552 crore compared with Rs 16,875 crore in the previous quarter and Rs 18,138 crore in the year-ago quarter.
"About 25% of our book is retail loans within which there is now a potentially growing book for micro finance loans. In the last three quarters we have acquired about ₹470 crore of micro finance loans where the recovery has been even better than our projections. We expect this pace to continue," Manhas said.