Public Sector Banks Report Record Profit of Rs 1.29 Lakh Crore for April to December 2024
In a remarkable achievement, public sector banks (PSBs) in India have posted their highest-ever net profit of Rs 1.29 lakh crore for the period of April to December 2024. This marks an impressive 31.3% year-on-year increase in profits. The finance ministry highlighted this achievement, emphasizing the significant improvements in key financial indicators such as net profit, asset quality, and capital buffers during this period.
| PSU Bank | Net Profit (Rs. crore) |
|---|---|
| SBI | 16891 |
| Bank of India | 2516.7 |
| Bank of Baroda | 4837 |
| Indian Bank | 2852 |
| PNB | 4508.21 |
| Punjab & Sind Bank | 282 |
| Canara Bank | 4104 |
| UCO Bank | 639 |
| Indian Overseas Bank | 875.27 |
| Union Bank of India | 4604 |
| Central Bank of India | 959 |
| Bank of Maharashtra | 1406 |
The 12 state-owned banks collectively reported a net profit growth of 31.3%, reaching a record total net profit of Rs 1,29,426 crore. Alongside this, they achieved an aggregate operating profit of Rs 2,20,243 crore during the nine months of the financial year.
Improved Asset Quality and Strong Financial Performance
One of the standout features of this performance is the improved asset quality. The net non-performing asset (NPA) ratio has significantly dropped to just 0.59%, with a total net NPA outstanding of Rs 61,252 crore. This demonstrates the PSBs’ enhanced financial stability.
In terms of business growth, PSBs recorded an 11% increase, with deposits growing by 9.8%. The total aggregate business of these banks reached Rs 242.27 lakh crore by the end of December 2024.
Strong Credit Growth and Capital Buffers
PSBs also showed strong credit growth of 12.4%, driven primarily by a 16.6% increase in retail credit, 12.9% growth in agriculture credit, and 12.5% growth in credit for micro, small, and medium enterprises (MSMEs).
In addition, the banks have built strong capital buffers. The aggregate capital to risk-weighted assets ratio stands at 14.83%, well above the regulatory minimum requirement of 11.5%. This indicates that PSBs are well-equipped to meet the credit demands from various sectors of the economy, with a particular focus on agriculture, MSMEs, and infrastructure.
Reforms Contributing to Financial Health
The finance ministry also credited various policy and process reforms for this positive performance. These reforms have enhanced the credit discipline, improved governance, supported financial inclusion initiatives, and promoted technology adoption across the sector. The ministry emphasized that these efforts have contributed to the sustained financial health and robustness of the banking sector.
The PSBs in Focus
The public sector banks that contributed to this record performance include Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab National Bank, Punjab & Sind Bank, State Bank of India, Union Bank of India, and UCO Bank.
The finance ministry said that these banks are now well-capitalized and positioned to meet the credit needs of all sectors of the economy.
