Similarly, the growth in net profits of SCBs was also on a declining trend since 2011–12 and turned negative in 2013–14. This decline in net profits of SCBs during this period was primarily the result of higher provisioning on banks’ delinquent loans during the period 2012–14. This in turn impacted their return on assets (RoA) and return on equity (RoE).
The banks’ spread and net interest margin (NIM) also witnessed a decline during the period. BIS central bankers’ speeches  1  Diagnostic or root cause analysis 6. As in any medical exercise, the next step is to run a diagnostic check to understand the root cause of the problems.