Finance Minister Nirmala Sitharaman emphasized on Tuesday that public sector banks (PSBs) are safe, stable, and thriving, achieving remarkable profitability. During the debate on the Banking Laws (Amendment) Bill, 2024, she highlighted that PSBs earned a profit of ₹85,520 crore in the first six months of the current fiscal, following a record profit of ₹1.41 lakh crore in the previous year. Click here to check Net Profit of PSU Banks in Sep 2024 Quarter.
Public Sector Banks Leading the Way
Minister Sitharaman stated that all PSBs are now profitable and professionally managed. Their financial metrics are strong, allowing them to raise capital independently through bonds and loans. She said that public sector banks are efficiently managed and do not rely on government funding.
She said: “Look around and the world has lost their banks where regulatory systems are sound, the banks have failed. We can’t have our banks struggling. We must credit RBI and FinMin for it. Since 2014, we are cautious that banks remain stable.”
- Return on Assets (RoA): 1.3%
- Return on Equity (RoE): 13.8%
- Branch Network: Total bank branches of scheduled commercial banks increased by 3,792 in a year, reaching 16,55,001 by September 2024, of which 85,116 are PSB branches.
Rural Reach Through PM Jan Dhan Yojana
The intent of bank nationalization—to reach rural India—has been realized through initiatives like the PM Jan Dhan Yojana.
- Deposits in Jan Dhan Accounts: ₹2.37 lakh crore
- Average Balance Growth: From ₹1,065 in 2014 to ₹4,397 in 2024
Government had also introduced Banking Laws Amendment Bill 2024 which has been passed in Lok Sabha. Click here to read this in detail.
- 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
- Also Read: Net Profit of all Banks in June 2024 Quarter, Check Bank wise list
Public Sector Banks (PSBs) have been a cornerstone of India’s financial ecosystem, playing a pivotal role in fostering economic growth, social inclusion, and financial stability. With their extensive reach and unwavering commitment to serving the nation, PSBs have consistently proven their relevance in an ever-evolving financial landscape.
In a world of financial uncertainties, PSBs stand as symbols of stability and reliability. Backed by the government, they provide customers with the confidence that their savings are secure. During crises, such as the global financial meltdown or the COVID-19 pandemic, PSBs have demonstrated resilience, ensuring uninterrupted banking services.