PSBs Show Robust Performance in First Half of Fiscal Year: 26% Growth in Net Profit

The finance ministry announced on Tuesday that public sector banks (PSBs) have demonstrated robust performance in the first half of the current fiscal year, with a 26 per cent growth in net profit and an increase in business.

According to data released by the ministry, the aggregate business of 12 PSBs, including State Bank of India and Punjab National Bank, stood at Rs 236.04 lakh crore during the April-September period, registering an 11 per cent year-on-year (YoY) growth. The credit and deposit portfolio grew 12.9 per cent and 9.5 per cent YoY, respectively, to reach Rs 102.29 lakh crore and Rs 133.75 lakh crore.

The operating and net profit during the period was Rs 1,50,023 crore (14.4 per cent YoY growth) and Rs 85,520 crore (25.6 per cent YoY growth). The gross and net NPA stood at 3.12 per cent and 0.63 per cent, respectively, in September 2024, declining 108 bps and 34 bps YoY.

The finance ministry attributed the improved performance to banking sector reforms and regular monitoring, which have addressed many concerns and challenges. These measures have led to the setting up of enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives, technology adoption, etc.

PSBs have also shown significant progress in adopting new age technologies like AI/cloud/blockchain, upgrading their existing digital infrastructure, and implementing necessary systems/controls to tackle cyber security risks. The ministry has also highlighted major banking reforms such as the implementation of enhance access and service excellence (EASE), enactment of Insolvency and Bankruptcy Code (IBC), and putting in place a robust governance framework.

The review meetings chaired by Finance Minister Nirmala Sitharaman have facilitated deliberations on current and emerging issues with the chief executives of PSBs. The ministry's statement said that these measures have led to sustained financial health and robustness of the banking sector as a whole, reflected in the current performance of the PSBs.

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