Performance of Indian Public Sector Banks 2018-19 & Prospective

While the country was hoping for above 7% GDP growth for the current fiscal 2019-20 as against 6.8% last year (GVA: Agri 2.9%, Industry 6.2%, Services 7.9%), We hoped earlier that there would be no further hindrance on the banking system as faced in the last three years. To our surprise, the GDP growth has recorded a steep fall at 5% in June 2019&4.5% in Sep 2019 against our higher expectations. India's economy grew at its slowest pace in over six years in the June quarter following a sharp deceleration in consumer demand and tepid investment although the Government has already announced a series of measures as part of its efforts to put the growth normal.As far as the Moody's Investors Service is concerned, India's gross domestic product (GDP) growth forecast for 2019-20 has been revised at 5.8% from the earlier estimate of 6.2% attributed to the deceleration to an investment-led slowdown .Today, RBI also revised the estimate to 5%. As far as many Economists are concerned, they blame the economy for lesser productivity and larger unemployment situation as per some media reports.It is a matter of fact that the significance of PSBs is more predominant in measuring the economic growth in terms of GDP and the services rendered especially under social banking is the vital factor which are the real back bone of our Indian economy. This is because PSBs alone take the major share of around 70% of entire Banking System level activities. As such, we have made this analysis with an idea to explore the possibilities of finding further avenues for improvement towards attaining a steady and progress growth