Public Sector Banks Post Robust Growth in First Half of FY25

The finance ministry has announced that public sector banks (PSBs) have shown robust performance in the first half of the current fiscal year, registering a 26 per cent growth in net profit and an 11 per cent year-on-year (YoY) growth in aggregate business.

According to the government, 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, driven by a 12.9 per cent YoY growth in credit and deposit portfolio. The operating profit grew by 14.4 per cent YoY to Rs 1,50,023 crore, while net profit shot up by 25.6 per cent YoY to Rs 85,520 crore.

The finance ministry attributed the improved performance to stringent banking sector reforms and regular monitoring, which have enabled PSBs to adopt enhanced systems and processes for credit discipline, recognition, and resolution of stressed assets. The government also highlighted significant progress in adopting new-age technologies like AI/cloud/blockchain, upgrading digital infrastructure, and putting in place necessary systems/controls to tackle cyber security risks.

"Major banking reforms such as the implementation of enhance access and service excellence (EASE), enactment of Insolvency and Bankruptcy Code (IBC), and setting up of National Asset Reconstruction Company Ltd (NARCL) have enabled PSBs to achieve robust financial health and sustainability," a government statement said.