The banking system in India has achieved a remarkable milestone. The net profit of the public sector banks surged past Rs 1.4 lakh crore in the fiscal year ending March 2024. This achievement reflects the effectiveness of strategic measures implemented by the government, signalling a promising outlook for the banking industry. Which bank topped the public sector banks’ profit?
Let us take a look!
Public Sector Banks in India News
- Public sector banks collectively earned over Rs 1.4 lakh crore in FY24, marking a 35% increase from the previous fiscal year.
- State Bank of India (SBI) alone contributed more than 40% of the total earnings, amounting to Rs 61,077 crore.
- Punjab National Bank saw the highest net profit growth at 228%, reaching Rs 8,245 crore.
- Union Bank of India and Central Bank of India experienced significant rises in net profit, with increases of 62% and 61%, respectively.
- Bank of India, Bank of Maharashtra, and India Bank recorded growth rates of 57%, 56%, and 53% respectively.
- Punjab & Sind Bank was the sole public sector bank to report a decline in profit, with a 55% decrease to Rs 595 crore in FY24.
- Government initiatives and reforms, including transparent NPA recognition and recapitalisation, contributed to PSBs’ turnaround from record losses to record profits in FY24.
Strong Growth in Public Sector Banks’ Profit
There are a total of 12 public sector banks in India.
These collectively earned over Rs 1.4 trillion in profit during the fiscal year ending in March 2024.
Net Profit of Public Sector Banks (PSBs) for the Fiscal Year Ending March 2024
| Bank Name | Net Profit (in crore) |
| State Bank of India (SBI) | Rs 61,077 |
| Punjab National Bank | Rs 8,245 |
| Union Bank of India | Rs 13,649 |
| Central Bank of India | Rs 2,549 |
| Bank of India | Rs 6,318 |
| Bank of Maharashtra | Rs 4,055 |
| Indian Bank | Rs 8,063 |
| Punjab & Sind Bank | Rs 595 |
| Bank of Baroda | Rs 17,788 |
| Canara Bank | Rs 14,554 |
| Total | Rs 1,41,203 crore |
These figures illustrate the public sector banks’ profit in FY 24.
Strong Growth in Public Sector Banks’ Profit
There are a total of 12 public sector banks in India.
These collectively earned over Rs 1.4 trillion in profit during the fiscal year ending in March 2024.
SBI Leads Profit Growth
Out of the total profit earned, the State Bank of India (SBI) emerged as a significant contributor, accounting for over 40% of the total earnings. SBI’s profit surged to Rs 61,077 crore, a remarkable 22% increase compared to the preceding fiscal year.
Which are the top 10 public banks in India?
Notable Profit Growth Across Banks
Several public sector banks witnessed substantial growth in net profit. Punjab National Bank recorded the highest percentage increase at 228%, followed by Union Bank of India with a 62% rise, and Central Bank of India with a 61% increase.
Bank of India saw a 57% growth in net profit, while Bank of Maharashtra and Indian Bank recorded rises of 56% and 53%, respectively.
Challenges Faced by Punjab & Sind Bank
However, Punjab & Sind Bank experienced a setback, reporting a 55% decline in annual net profit, dropping from Rs 1,313 crore to Rs 595 crore.
Turnaround of Public Sector Banks in India
The public sector banking industry witnessed a remarkable turnaround, transitioning from significant losses in FY18 to record profits in FY24.
Factors Driving the Growth and Public Sector Banks’ Profit
This transformation can be attributed to the government’s strategic initiatives and reforms led by Prime Minister Narendra Modi, former Finance Minister Arun Jaitley, and successive leaders.
Comprehensive Government Strategy
The government’s comprehensive 4R strategy:
- Recognising NPAs transparently
- Resolving and recovering bad loans
- Recapitalising PSBs
- Reforms in the financial ecosystem
Unprecedented Recapitalization
An unprecedented Rs 3,10,997 crore was infused by the government to recapitalize PSBs from 2016-17 to 2020-21, providing crucial support and averting potential defaults.
Holistic Reforms
Over the past nine years, government reforms focused on enhancing credit discipline. Their focus has been on fostering responsible lending practices, embracing technology, bank mergers, and supporting bank confidence.
Conclusion
The resurgence of public sector banks, transitioning from significant losses in FY18 to record profits in FY24, showcases a compelling narrative of transformation. This success story is attributed to the concerted efforts and reforms spearheaded by the government.
Source– moneycontrol.com
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