There is one glaring exception to the glowing returns reported in the Top 1000 World Banks 2018 ranking: India. Only half of its banks managed a profit and the sector collectively posted a $9.2bn loss. The country is home to 48% of the Top 1000's loss-makers and dominates the table of biggest losses. For two of these lenders – Punjab National Bank and Canara Bank – it has been a rollercoaster ride, with them having been among the top 10 biggest recoveries in 2017’s rankings.
The sector’s deterioration has occurred in two stages, and is undoubtedly linked to the Reserve Bank of India (RBI) pressuring state-owned banks to recognise and deal with the NPLs bloating their balance sheets. The RBI’s clampdown started in late 2015, following which country-wide profits diminished by two-thirds. They then edged up a fraction, before plummeting in the 2018 rankings.
