Asset quality weakened in December quarter but it was better compared to peers. Gross non-performing assets (NPA) increased 95 basis points QoQ and 20 bps YoY to 5.1 percent and net NPA rose 75 bps QoQ and 9 bps YoY to 2.89 percent in Q3.
We are expecting recapitalization of PSU banks (Rs15,000 -18,000 crore) mostly in the form of tier- I capital. During FY13, GOI had budgeted Rs.120 bn to be infused into PSU banks including SBI.