BANKS
Public sector banks post strong growth in first half of FY25
Aggregate business of public sector banks jump 11% YoY to Rs 236.04 lakh crore in first six months of current fiscal; net profit up 26% to Rs 85,520 crore and bad loans fall.
Aggregate business of public sector banks jump 11% YoY to Rs 236.04 lakh crore in first six months of current fiscal; net profit up 26% to Rs 85,520 crore and bad loans fall.
The finance ministry on Tuesday said public sector banks (PSBs) have put up a strong performance in the first half of FY25 with a 26% growth in net profit, increase in business and decline in non-performing assets (NPAs).
The aggregate business of 12 PSBs, including State Bank of India and Punjab National Bank, stood at Rs 236.04 lakh crore in the six-month period ending September, up 11% year-on-year.
During the first half of FY25, credit grew 12.9% YoY to Rs 102.29 lakh crore while deposits increased by 9.5% to Rs 133.75 lakh crore. Incidentally, deposit growth lagged behind credit growth.
Operating and net profit grew 14.4% and 25.6% to Rs 1,50,023 crore and Rs 85,520 crore, respectively, during the period.
Bad loans also saw an improvement, declining during this period. The gross and net non-performing assets (NPAs) stood at 3.12% and 0.63%, respectively, in September 2024. The gross and net NPA declined by 108 basis points and 34 basis points YoY.
The finance ministry attributed the robust performance to banking sector reforms and regular monitoring. These have resulted in setting up enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives and technology adoption.
PSBs have also made significant progress on adopting new age technologies such as artificial intelligence, cloud and blockchain; upgrading existing digital infrastructure; tackling cybersecurity risks; and taking steps to provide best-in-class customer services, the ministry said.
Major banking reforms such as implementation of enhance access and service excellence (EASE), enactment of Insolvency and Bankruptcy Code (IBC), putting in place a robust governance framework, setting up of National Asset Reconstruction Company Ltd (NARCL), amalgamation of PSBs, among others, were undertaken in the last few years.
The review meetings chaired by Finance Minister Nirmala Sitharaman also facilitated deliberations on a range of current and emerging issues with the chief executives of PSBs, the ministry said.
