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PSU banks better placed on loan-deposit metrics; microfinance cycle nearing normalisation, says Yuvraj Choudhary
Speaking to ET Now, Yuvraj Choudhary from Anand Rathi Institutional offered a data-backed perspective, arguing that the issue may be less severe for PSU banks than widely perceived.
Responding to concerns that the industry’s loan-to-deposit ratio has been climbing in recent quarters, Choudhary said, “So basically, loan to deposit. So, if we look at the broad data, so the loan to deposit has been going up in the last few quarters because credit growth has been faster than the deposit growth. However, for PSU banks, if you look at the overall data, for PSU banks the credit to deposit ratio is almost 10% lower than the private banks. So, there has been lot of talks around PSU bank struggling in the LDR ratio. However, if we look at the recent trends, say for example for SBI, the credit to deposit ratio for SBI is close to 73-74%, which is much lower than what the industry is at. So, although credit to deposit ratio has been going up, but it is less of a problem for PSU banks compared to private banks.”
The example of State Bank of India (SBI) underscores the point. With a credit-to-deposit ratio in the low-70% range, SBI appears to have significant headroom compared with several private peers operating at tighter levels.
Deposit Growth Catching Up
While PSU banks have faced questions around deposit mobilisation, Choudhary noted that the gap between credit and deposit growth is beginning to narrow.
“See, if you look at the overall deposit for the PSU banks, obviously it was lower than the credit growth; however, in the last few quarters deposit growth has started to pick up. So, obviously going forward, deposits it is a very key matrix, so deposit growth would be very important for PSU banks to sustain their credit growth; however, again I would like to reiterate, it is lesser of a problem for PSU banks compared to private banks.”
On system-wide credit expansion, he added that PSU banks have actually been leading the charge in recent quarters. “See, if you look at the recent credit growth, so PSU banks have been outperforming private banks now for multiple quarters on the credit growth side. So, if you look at the balance sheet structure the CD ratio has been increasing for PSU banks because essentially now they are lending, so the lending has increased. So, we expect this trend to continue because firstly, PSU banks has better deposit franchise compared to private banks and secondly, if you look at the investment book, they have higher liquidity which means higher SLR compared to private banks.”
In other words, rising CD ratios for PSU banks reflect a revival in lending activity rather than a liquidity squeeze.
Microfinance: Signs of a Turnaround
Beyond mainstream banking, Choudhary also addressed the microfinance segment, which has undergone a prolonged stress cycle over the past year to 18 months. With valuations correcting sharply, investors are watching closely for signs of stabilisation.
“See, if we look at microfinance, it has gone through a difficult cycle in last one, one-and-a-half years. So, if you look at the recent trends, say specifically the collections and disbursements, so in last couple of quarters so there has been a significant improvement in collections. So, it is close to the normalised levels and if you look at the disbursements, it has started to pick up across the sector. So, fundamentally if you look at the MFI sector, it is starting to normalise. So, if this continues, the rerating might come.”
Improving collections and a pickup in fresh disbursements suggest that the worst of the asset-quality stress may be behind the sector, opening the door for potential rerating over the coming quarters.
PSUs Outperforming on Key Metrics
When asked about broader banking preferences, Choudhary highlighted three parameters — asset quality, loan growth and return on equity — where PSU banks are currently ahead.
“So, if you look at the last few quarters, even if you look at this quarter, so if you look at broadly three parameters, asset quality, loan growth, and ROEs, so PSU banks have clearly outperformed private banks on three parameters. If you look at asset quality, their gross slippages on an aggregate basis is 60 basis points for PSU banks, it is 100 basis point lower than private banks. So, that is a very healthy asset quality for them. So, it has been now for few quarters now that they have been outperforming private banks on asset quality. Secondly, even if you look at the loan growth number, the outperformance is there and lastly, on the ROE side, so on an aggregate basis PSU banks are generating an ROE closer to 15%, so that is 200 to 300 basis points higher than private banks. So clearly, the performance is there. So, we expect PSU banks to outperform private banks at least in the near term.”
Are Earnings Too Dependent on Non-Core Income?
A lingering concern among some analysts is whether PSU bank profitability is being flattered by non-core income — including treasury gains and recoveries — rather than sustainable core operations.
Addressing this, Choudhary said, “So, that is a very good question. So, if you look at, so obviously treasury and recoveries are part of the normal operations for any of the bank. So, let us take an example of SBI. So, for SBI even if we remove the whole income from recovery part, income from treasury parts, so they are generating an ROA which is closer to 80 basis point on a normalised level and it has been for last multiple quarters. And if you talk about say again taking an example for SBI, so in the last 10 years on an average they have…, so their income from recovery pool is closer to 10 basis point and if you look at the treasury for last 25 years for SBI on a normalised basis, so they have generated an income of 10 to 15 basis point from their treasury pool. So, the point here is that it is a part of their operations. So, 80 to 90 basis point they are generating without treasury and recovery and if we add that, so the ROA numbers come close to 1 to 1.1%.”
His argument suggests that while treasury gains and recoveries do support earnings, the underlying return metrics remain reasonably healthy even after stripping out these components.
Near-Term Bias Favors PSUs
Taken together, the data points to a shift in momentum within the banking pack. PSU banks, once seen as laggards, are currently delivering stronger credit growth, cleaner asset quality trends and superior return ratios.
If deposit growth continues to improve and the microfinance cycle stabilises as expected, the near-term performance gap between public and private sector lenders could persist — reshaping investor preferences in India’s banking landscape.
STOCKHOLM—A Swedish company is defying a downturn in green-technology funding by raising new capital as investors bet that its electric ferries can make a splash with public transport operators and commuters.
Stockholm-based Candela started out developing hydrofoiling electric leisure boats, but is now applying the technology and lessons learned from its speed boats to ferries.
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Here's How Markets Are Reacting After Hotter-Than-Expected PPI
Analysts said the exit, coupled with uncertainty surrounding the term renewal of the incumbent CEO, may keep the stock under pressure in near term despite mouthwatering valuations. CEO Sashidhar Jagdishan’s second term ends in October.
AgenciesThe stock ended 5.3% lower at ₹798.2, its weakest close since August 2024, erasing ₹69,026 crore in market value. It had fallen to ₹770 apiece at the start of the day. The Nifty 50 fell 3.3% to 23,002.15. HDFC Bank has the strongest influence on the index movement with an 11.83% weight.
Brokerage Macquarie said the stock may continue to underperform in the near term.
“While fundamentals remain strong with good ROA, at this point in time governance concerns will weigh down heavily on the stock,” the brokerage wrote. “Investors would want more comfort from the board. Also now the uncertainty surrounding Sashi’s reappointment will weigh down on the stock.”
Macquarie has an ‘Outperform’ rating on the stock with a target price of ₹1,200.
Brokerage Bernstein noted that while the stock is already trading at or below Covid-era valuation levels, recovery from governance-related concerns will be neither quick nor easy. “Investors will likely wait to ensure that this doesn’t trigger any investigations from regulators that could take longer to conclude,” Bernstein said. The firm has a target price of ₹1,150. Technically, the stock may see some relief after sharp sell-off. HDFC Bank has dropped 24% over the past four months and has breached key support zones at ₹860 and ₹840.
“Momentum indicators are now in oversold territory, suggesting a potential pullback,” said Rohan Shah, technical analyst at Asit C Mehta Investment Intermediates. “But failure to sustain above ₹840 could renew selling pressure, with downside risk towards ₹750-730 over the coming weeks.”
He added that weakness in the broader Bank Nifty and the overall market could add to the drag.
At current valuations of about 1.7 times FY27 price-to-book, the stock offers an attractive entry point, said Sunny Agrawal, Head of Fundamental Research at SBI Securities. who has a target price of ₹1,100.
“The management clarified on Thursday that the resignation was solely due to personal relationship issues between chairman (non executive) and leadership team and does not impact the bank’s business performance or underlying values and ethics,” he said. “With RBI reaffirming the bank’s fundamentals and Keki Mistry returning to the board, we believe investor confidence should stabilise.”
Global private equity firms including Warburg Pincus, EQT, and Partners Group had shown interest in acquiring the business at $1.5-1.6 billion (₹13,980-14,912 crore) valuation. However, this fell short of the $2 billion valuation sought by the promoters and existing investor Quadria Capital, said the people cited above.
“As the promoters plan an IPO in the next 12-18 months, Quadria Capital is likely to stay invested and partially exit through the public offering,” one of the persons said.
Promoter Mehul Shah and his family currently hold around 84.2% in the company, while Quadria owns 14.9%, with the remainder held by other investors and the ESOP pool. Quadria had acquired the stake in 2021 at a valuation of $800 million.
AgenciesBidders’ valuation of $1.5-1.7 b failed to match the $2b sought by promoters, investors
A consortium led by Warburg Pincus and Abu Dhabi sovereign wealth fund Mubadala Investment Company had emerged as the frontrunner to buy up to a 74% stake in the company, ET reported last month.
Quadria had appointed JPMorgan to run the sale process.
Encube is a generics-focused pharmaceutical contract manufacturer known for brands such as Soframycin. Founded in 1998, Encube specialises in topical formulations and has built a strong portfolio spanning creams, gels, and ointments catering to dermatology and reproductive healthcare. In 2021, the company entered the consumer healthcare space by acquiring brands such as Soframycin, Sofradex, Sofracort, and Soframycin-Tulle from Sanofi for India and Sri Lanka in a deal worth around ₹125 crore.
Unknown Executive
Greetings. Gary Fishman is having some technical difficulties. This is Bradley. I just wanted to say welcome to the RCI Hospitality Holdings Fourth Quarter and Year-end Earnings Conference Call. My name is Bradley Chhay.
You can find the company’s presentation on the RCI website. Go to Investor Relations section. All the links are on the top of the page. Please turn to Slide 2 of our presentation. Our speakers today are Travis Reese, Interim President and CEO; and Albert Molina, Interim CFO.
Please turn to Slide 3. RCI is making this call exclusively on X Spaces. To ask a question, you will need to join the Space with a mobile device. To listen only, you can join the space on a personal computer. At this time, all participants are on listen-only mode. A Q&A session will follow after the call. The conference is being recorded.
Please turn to Page 4. I want to remind everyone of our safe harbor statement. You may hear or see forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards.
Please turn to Page 5. I also direct you to the explanation of RICK’s non-GAAP financial measures. Now I’m pleased to introduce Travis Reese, Interim President and CEO. Take it away, Travis.
Travis Reese
Interim President, CEO, Secretary & Chairman
Thank you, Bradley. Thank you all for joining us. Please turn to Slide 6. I’m pleased to report that we filed our 10-K today and announced our
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Bizarre footage has captured the chaotic moment a service robot appeared to spin out of control at a restaurant near San Jose, California, violently striking a customer’s food and tableware without warning before abruptly breaking into a series of erratic dance moves.
The wild incident was captured in a viral video in Cupertino at a Haidilao hot pot location, a chain known for integrating artificial intelligence and robotic technology to help streamline operations, including delivering food to tables.
In the video, the robot appeared to begin a dance routine near diners before suddenly pounding a neighboring table, sending tableware, chopsticks and condiments flying off the surface.
Staff members were then seen struggling to restrain the uncontrollable humanoid as it continued to move with even greater energy, appearing to hype up the crowd with its wild gestures.
GRUBHUB LAUNCHES FIRST-EVER COMMERCIAL DRONE FOOD DELIVERY SERVICE IN NEW JERSEY
A robot goes out of control at a hot pot restaurant in California. (@meooow via Storyful / Fox News)
The robot carried on for another minute with a condiment-stained hand as it displayed a cheerful expression.
The restaurant reportedly said the robot’s sudden attack on the dining space was caused by human error and was not a programming malfunction. The bot simply appeared too close to the table when it began its entertainment routine.
DELL WORKFORCE SHRINKS BY 10% FOR THIRD CONSECUTIVE YEAR
A serving robot at a hot pot Haidilao location goes out of control near San Jose, California. (@meooow via Storyful / Fox News)
“In this case, the robot was brought closer to a dining table at a guest’s request, which is not its typical operating setting,” Haidilao said in a statement, NBC reported. “The limited space affected its movement during the performance.”
The robots, which are more widespread in China than overseas, have been used by the Beijing-based company for years.
A Keenon Robotics Co. smart delivery robot moves through a Haidilao hotpot restaurant, operated by Haidilao International Holding Ltd., in Shanghai, China, on Wednesday, April 7, 2021. (Qilai Shen/Bloomberg via Getty Images / Fox News)
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In 2022, the tech-forward dining chain launched its first smart restaurant worldwide in Beijing, featuring tools such as an intelligent kitchen management system, automatic broth-mixing machines, and robot servers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HDALF | HAIDILAO INTERNATIONAL HOLDING LTD. | 2.04 | -0.10 | -4.67% |
FOX Business reached out to Haidilao for more information.
Sebi is also likely to review the ‘fit and proper’ criteria for market intermediaries, such as stockbrokers, people in the know told ET. The review pertains to disqualification norms for key managerial persons and directors.
At present, individuals in key roles face automatic disqualification if an FIR or charge sheet is filed in an economic offence case. The regulator intends to scrap this automatic trigger, offering relief to executives facing allegations that are yet to be proven in court.
“Currently, mere filing of a criminal complaint triggers disqualification for key personnel, even before any guilt is established,” said Aditya Joby, senior associate at Joby Mathew & Associates. “This can unfairly damage careers and livelihoods. Moving to conviction-stage disqualification better reflects the presumption of innocence in Indian law. The challenge will be how this interacts with the proposed Securities Market Code and delays in Sebi’s special court, which can still affect individuals in the interim.”
The regulator also plans to ease rules for alternative investment funds (AIFs) seeking to wind up schemes and surrender registration, helping funds stuck due to unresolved legal or tax issues.
“Sebi’s proposal to allow netting will ease liquidity pressures for FPIs and reduce forex costs, particularly on days where securities have to be bought and sold for rebalancing purposes,” said Rajesh Gandhi, partner at Deloitte. ” This is another step taken by Sebi to ease norms for FPIs and provide regulatory ease to enable greater flow of capital to India.”
At present, FPIs are required to trade on a delivery basis, meaning transactions must result in the actual exchange of securities and cash, with no netting or same-day offset. All trades are settled on a gross basis through custodians, requiring full pay-in for both buys and sells. For instance, an FPI buying shares of A worth ₹100 crore and selling an equal amount of shares of B must still fund the purchase and deliver the securities before receiving cash and shares in settlement.
Sebi noted that this pay-in obligation of ₹100 crore leaves the FPI underinvested for at least a day, as funds cannot be netted against sale proceeds.
Dhaval Jariwala, partner at P N D J & Associates, added that netting would cut FPI funding costs with minimal operational challenges. FPIs withdrew over ₹71,746 crore from Indian equities this month (up to March 17), according to ETIG data.
At the meeting, the Sebi board will also discuss a proposal to allow InvITs (Infrastructure investment trusts) to continue holding investments in SPVs (special purpose vehicles) after a project’s concession period ends, widen the pool of liquid mutual funds for parking surplus funds, and permit privately listed InvITs to invest up to 10% of assets in under-construction or greenfield projects.
The regulator may also reduce the minimum investment in social impact funds from ₹2 lakh to ₹1,000 to encourage small investors to back social projects.
The New York Times Wordle puzzle for Friday, March 20, 2026 — Puzzle No. 1735 — challenged players with a five-letter word that evoked relief in a barren landscape, earning praise for its thematic elegance and moderate difficulty.
Released at midnight Eastern time on nytimes.com/games/wordle and the NYT Games app, today’s Wordle featured the answer **OASIS**. The noun refers to a fertile spot in a desert providing water and vegetation, or metaphorically, a place of refuge amid hardship.
Wordle players receive six attempts to guess the secret five-letter word, with color feedback: green for correct letter and position, yellow for correct letter in wrong position, and gray for absent letters. The puzzle resets daily, and streaks encourage consistent play.
### Progressive Hints for Today’s Puzzle
For solvers preferring to crack it independently, here are layered clues:
– It contains three vowels and two consonants.
– The word starts with O.
– It has one repeated letter (the same vowel appears twice).
– Think of a desert feature that offers water and shade.
– It’s commonly used figuratively for something comforting in a tough situation, like a calm break in chaos.
Community feedback on forums and social media rated the puzzle around average to slightly above average difficulty. Many solved it in 4-5 guesses, with average attempts at about 5 per NYT data. Testers found it “very challenging” in some reviews, though starter words often revealed key vowels early.
### Full Answer and Breakdown
**Today’s Wordle answer: OASIS**
– Position 1: O (green early for many)
– Position 2: A
– Position 3: S
– Position 4: I
– Position 5: S (repeated S at end)
No uncommon letters tripped players; the double S and vowel-heavy structure made it accessible once vowels locked in.
### Strategies to Solve Wordle Efficiently
Wordle’s enduring appeal lies in its simplicity and strategic depth. Experts and top solvers recommend these approaches:
1. **Strong openers**: Begin with words rich in common vowels (A, E, I, O, U) and frequent consonants (R, S, T, L, N). Popular starters include ADIEU, AUDIO, RAISE, SLATE, CRANE or TRACE. Today’s puzzle rewarded vowel-focused guesses like AUDIO or ARISING.
2. **Second guess optimization**: Use the first guess’s feedback to maximize information. If green/yellow letters emerge, incorporate them while testing new common letters. Avoid repeating eliminated grays.
3. **Position awareness**: Green letters fix positions; yellows need repositioning. Eliminate impossible placements quickly.
4. **Hard mode consideration**: For added challenge (optional in settings), reuse confirmed letters in subsequent guesses. It sharpens logic but increases difficulty.
5. **Avoid rare words early**: Skip obscure starters; focus on high-frequency letters per computational analyses (e.g., from Wordle solver bots).
6. **Streak protection**: If stuck, note possible words without guessing recklessly. Many use paper or notes for tracking.
Today’s puzzle exemplified good design: common word, fair letter distribution, no obscure meanings. It avoided traps like plurals or past tenses that sometimes mislead.
### Player Reactions and Community Insights
On Reddit’s r/wordle and X, solvers shared grids showing 3-6 guess solves. One user posted a lucky 3-guess win starting with PARSE → BASIL → OASIS. Others noted the repeated S caught them off-guard after vowel tests.
The puzzle’s desert theme resonated amid spring discussions of renewal and escape. Some linked it metaphorically to finding calm in busy lives or global events.
Wordle, created by Josh Wardle and acquired by The New York Times in 2022, remains free (with optional subscription for ad-free play and archives). It spawns variants like Quordle, Sedecordle and Worldle, but the original daily ritual endures.
For those who missed it or want practice, the archive lets subscribers replay past puzzles. Puzzle #1736 arrives at midnight ET on March 21.
With consistent daily engagement, Wordle sharpens vocabulary, pattern recognition and persistence — small wins that build satisfying streaks.
The accomplished women were inducted into the WA Women’s Hall of Fame on the week of International Women’s Day.
Although on Tuesday Reeves, in contrast, stressed that the red lines set out in Labour’s manifesto still stand, the chancellor has now clearly signalled a shift. She indicated in her Mais lecture that, wherever it was in Britain’s interest to do so, the government wants to align the UK’s regulatory regime with that of the EU in more areas.
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