Public sector banks (PSBs) have more than doubled their profits to Rs 

34,774 crore in the fiscal first quarter ended June 2023 over the year-ago period, news agency PTI reported.

During the April-June period of the previous fiscal, all 12 state-owned banks had recorded a total profit of Rs 15,306 crore, according to quarterly numbers published by public sector lenders.

Helped by the high-interest regime, most banks reported net interest margin (NIM) of over 3%.

Pune-based Bank of Maharashtra posted the highest NIM of 3.86%, followed by Central Bank at 3.62% and Indian Bank at 3.61% during the quarter ended June 2023.

During the first quarter, four lenders logged a profit of over 100%. The highest percentage growth was recorded by Punjab National Bank, which earned a profit of Rs 1,255 crore against Rs 308 crore in the same quarter of the previous year, a growth of 307%.

It was followed by State Bank of India (SBI), which recorded a 178% bottom line growth at Rs 16,884 crore and Bank of India with a 176% surge, earned Rs 1,551 crore profit.

SBI's highest-ever quarterly profit of Rs 16,884 crore is about 50% of the total profit earned by PSBs. During FY23 too, SBI's contribution was about 50%, when the cumulative profit of these banks was Rs 1.05 lakh crore.

Another five PSBs posted growth between 50 and 100%, PTI reported. This pack was led by Bank of Maharashtra, which clocked a 95% rise in net profit at Rs 882 crore. It was followed by Bank of Baroda recording a growth of 88% to Rs 4,070 crore and UCO Bank by 81% to Rs 581 crore.

The only bank out of 12 which booked decline in net profit is Punjab & Sind Bank. The Delhi-based PSB reported a 25% drop in net profit to Rs 153 crore in the June 2023 quarter.

Several measures taken by the government have helped in the revival of PSBs. As a result of 4R's strategy of recognition, resolution, recapitalisation and reforms, non-performing assets of banks have come down to a 10-year low at 3.9% of total advances, PTI reported. At the same time, banks recovered bad loans worth over Rs 8.6 lakh crore in the last eight financial years.

As part of the strategy, the government infused an unprecedented Rs 3,10,997 crore to recapitalise PSBs during the last five financial years -- from 2016-17 to 2020-21. The recapitalisation programme provided much-needed support to the PSBs and prevented the possibility of any default on their part.

The reforms undertaken by the government over the last eight years addressed credit discipline, ensured responsible lending and improved governance. Besides, there was technology adoption, amalgamation of banks and the general confidence of bankers.