The finance ministry announced on Tuesday that public sector banks (PSBs) have demonstrated strong performance in the first half of the current fiscal year, with a 26% increase in net profit, business growth, and a reduction in non-performing assets (NPAs).
Key highlights of the PSBs’ performance include:
- Aggregate business stood at Rs 236.04 lakh crore (11% YoY growth)
- Global credit and deposit portfolios grew by 12.9% and 9.5% YoY, reaching Rs 102.29 lakh crore and Rs 133.75 lakh crore, respectively
- Operating profit for H1FY25 was Rs 1,50,023 crore (14.4% YoY growth)
- Net profit for H1FY25 reached Rs 85,520 crore (25.6% YoY growth)
- Gross and net NPAs stood at 3.12% and 0.63% as of September 2024 (declines of 108 bps and 34 bps YoY)
- Capital to Risk-Weighted Assets Ratio (CRAR) was 15.43%, well above the regulatory requirement of 11.5%
- Also Read: Net Profit of all Banks in September 2024 Quarter
- Also Read: SBI Net Profit 2024: Check Last 14 Quarters Net Profit of SBI from 2022 till Now
- Also Read: Net Profit of all PSU Banks in 2023-24, Check Here
- Also Read: Net Profit of all Private Banks in 2023-24, Check Here
The total business of 12 PSBs, including the State Bank of India and Punjab National Bank, amounted to Rs 236.04 lakh crore during the April-September period, reflecting an 11% year-on-year (YoY) growth. In the first six months of FY25, the credit and deposit portfolios grew by 12.9% and 9.5% YoY, reaching Rs 102.29 lakh crore and Rs 133.75 lakh crore, respectively. The operating profit stood at Rs 1,50,023 crore (a 14.4% YoY increase), while net profit reached Rs 85,520 crore (a 25.6% YoY increase).
As of September 2024, the gross and net NPAs were 3.12% and 0.63%, respectively, showing a YoY decline of 108 basis points and 34 basis points. In a statement, the finance ministry attributed these achievements to banking sector reforms and ongoing monitoring, which have addressed several challenges and improved systems for credit discipline, asset resolution, responsible lending, governance, financial inclusion, and technology adoption.
- Also Read: Net Profit of all Banks in September 2024 Quarter
- Also Read: SBI Net Profit 2024: Check Last 14 Quarters Net Profit of SBI from 2022 till Now
- Also Read: Net Profit of all PSU Banks in 2023-24, Check Here
- Also Read: Net Profit of all Private Banks in 2023-24, Check Here
“These efforts have strengthened the financial health and resilience of the banking sector, as reflected in the performance of PSBs,” the statement noted.
The ministry also highlighted the significant progress PSBs have made in adopting new technologies such as AI, cloud computing, and blockchain. They have upgraded their digital infrastructure, implemented robust cybersecurity measures, and taken steps to enhance customer service.
Furthermore, major reforms over recent years, including the implementation of the Enhanced Access and Service Excellence (EASE) initiative, the enactment of the Insolvency and Bankruptcy Code (IBC), the establishment of the National Asset Reconstruction Company Ltd. (NARCL), and the merger of PSBs, have contributed to the sector’s growth.
Review meetings chaired by Finance Minister Nirmala Sitharaman have facilitated discussions on emerging issues with PSB chief executives, further supporting the sector’s development.
PSBs have also made significant strides in adopting advanced technologies, upgrading their digital infrastructure, and implementing necessary systems and controls to mitigate cybersecurity risks. They continue to take steps to offer best-in-class customer services.
