(The Hindu Busienss Line 2nd May 2008)The fourth quarter of the last fiscal was a relatively lacklustre one for public sector banks. For the 14 banks that have released their numbers, there has been an 11 per cent growth in profits. The picture might have been much worse but for the much higher profits posted by a few banks such as Bank of India and Corporation Bank. Lack of pricing power or the inability to pass on higher costs was visible. Interest expenses for the group were higher than their interest income. The net interest income of these 14 banks (interest income less interest expenditure), dropped 3 per cent compared to the corresponding quarter in the previous year. Only Bank of India seemed to show robust growth in this parameter. This year has seen a see-saw of sorts in profit performance of public sector banks across four quarters. In the first quarter, public sector banks posted a 40 per cent growth followed by a deceleration to about 20 per cent in the second quarter. Tha...
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