Analysts expected Public Sector Banks’ (PSB) results to be dreadful during March 2015 on account of year-end disclosures and the last quarter of RBI dispensation. Restructuring during March 2015 quarter was expected to be high as it was the last quarter of RBI dispensation on restructuring. Financial results were bad but not dreadful. Profits crashed but there were signs of improvement in asset quality.

   Edelweiss, in a report on the performance of PSBs, points out that though, optically, profitability took a severe beating (down more than 50%), better-than-expected asset quality shone through. Gross non-performing loans dipped across the board, with only a few exceptions, aided by curtailed slippages and better recoveries. Also, even though restructuring was higher, it toed the expected line — last quarter of RBI dispensation. Other broking houses share the same view. Krishna Kumar Karwa, managing director of Emkay Global Financial....