Honeymoon with record profits may end in March

From the June quarter, the drop in net interest margin will separate the men from the boys

Posting record profits has become a habit for Indian banks. With every quarter, their performance is getting better.

Except for two private banks — Yes Bank Ltd and Bandhan Bank Ltd — and one public sector bank (PSB), Punjab National Bank (PNB), all listed banks have posted a handsome rise in net profits in the December quarter. For India’s largest lender, the State Bank of India (SBI), the Rs 14,205-crore net profit is the highest-ever quarterly profit in its history.

Four PSBs — Bank of Maharashtra, UCO Bank, Union Bank of India and Indian Bank — have more than doubled