PSBs Show Robust Performance with 26% Growth in Net Profit

New Delhi: The finance ministry announced on Tuesday that public sector banks (PSBs) have demonstrated remarkable resilience with a notable growth in net profit, business, and decline in non-performing assets (NPAs) during the first half of the current fiscal year.

The aggregate business of 12 PSBs, including state-owned giants like State Bank of India and Punjab National Bank, stood at Rs 236.04 lakh crore as of September, registering an 11% year-on-year (YoY) growth. The credit and deposit portfolio grew by 12.9% and 9.5% YoY, respectively, while net profit rose by 26%.

The operating and net profit during the period amounted to Rs 1.50,023 crore and Rs 85,520 crore, with a 14.4% YoY growth in operating income and a 25.6% YoY jump in net profit.

Notably, the gross and net NPA decreased to 3.12% and 0.63% respectively as of September 2024, showing an 108 basis point and 34 basis point decline from the previous year.

Attributing these favourable trends to banking sector reforms and regular monitoring, Deputy Finance Minister Amit Vagheya said that these efforts have helped address many concerns and challenges, set up enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives, and technology adoption.