New Delhi: The performance of Public Sector Banks (PSBs) has shown significant improvement in key financial parameters during the first three quarters of the current Financial Year 2024-25, data released by the Union Finance Ministry suggested. It shows the highest-ever aggregate net profit of Rs 1.29 lakh crore reported by Public Sector Banks (PSBs) in the first nine months (April-December 2024) of Financial Year (FY) 2024-25, marking a 31.3% year-on-year growth.
Highlights as of December 31, 2024, are as under –
- Record net profit growth of 31.3% (year-on-year) to achieve the highest-ever aggregate net profit of Rs. 1,29,426 crore and aggregate operating profit of Rs. 2,20,243 crore, in the first nine months of the financial year.
- Improved asset quality visible from significantly low net non-performing assets (NPA) ratio at 0.59% (Aggregate net NPA outstanding of Rs. 61,252 crore).
- Aggregate business growth of 11.0% (y-o-y), with improved aggregate deposit growth at 9.8% (y-o-y). The total aggregate business of Public Sector Banks reached Rs. 242.27 lakh crore.
- Robust credit growth of 12.4%, led by retail credit growth of 16.6%, agriculture credit growth of 12.9% and Micro, Small and Medium Enterprises (MSME) credit growth of 12.5%.
- Built up of adequate capital buffers, with an aggregate capital-to-risk weighted assets ratio of 14.83%, significantly above the minimum requirement of 11.5%.
Public Sector Banks are adequately capitalized and well poised to meet credit demands of all sectors of the economy, with special thrust on Agriculture, Micro, Small and Medium Enterprises, and Infrastructure Sectors, according to the Union Finance Ministry.
“The policy and process reforms have resulted in enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives, technology adoption etc.,” the Union Finance Ministry stated. It added, “These measures have led to sustained financial health and robustness of the banking sector as a whole which is reflected in the current performance of the Public Sector Banks”.
– global bihari bureau
