Public sector banks post record 31.3 pc surge in net profit in April-December

New Delhi, Feb 6 (IANS) Public sector banks have shown a significant improvement in key financial parameters during the first three quarters (April-December) of the current financial year (2024-25) with a record net profit growth of 31.3 per cent year-on-year to achieve the highest ever aggregate net profit of Rs. 1,29,426 crore, the Finance Ministry said on Thursday.

The public sector banks have made an aggregate operating profit of Rs 2,20,243 crore, in the first nine months of the financial year. The asset quality of the banks has also improved with a significantly low Net NPA (non-performing assets) to total loans ratio at 0.59 per cent. The aggregate net NPA outstanding has come down to Rs. 61,252 crore during this period, according to the statement.

The public sector banks have also clocked an aggregate business growth of 11 per cent year-on-year with improved aggregate deposit growth at 9.8 per cent while their total aggregate business has reached Rs. 242.27 lakh crore, the statement pointed out.

The government-owned banks have posted a robust credit growth of 12.4 per cent led by retail credit growth of 16.6 per cent, agriculture credit growth of 12.9 per cent and MSME credit growth of 12.5 per cent. This has played a crucial role in driving up the economic growth rate and creating more employment in the country.

The public sector banks have also built adequate capital buffers, with an aggregate capital-to-risk-weighted assets ratio of 14.83 per cent, which is significantly above the minimum requirement of 11.5 per cent and reflects their robust financial health, the statement said.

The public sector banks are adequately capitalised and well poised to meet credit demands of all sectors of the economy, with a special thrust on agriculture, MSME and the infrastructure sector which drive growth and create employment.

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. 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, the statement added.

–IANS

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