Public Sector Banks show strong performance in Apr-Dec period, achieves highest ever aggregate net profit

The performance of Public Sector Banks has shown significant improvement in key financial parameters during the first three quarters of the current FY 2024-25. Highlights as of 31.12.2024, are as under –

Record net profit growth of 31.3% (y-o-y) 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 first nine months of the financial year.

Improved asset quality visible from significantly low Net 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). Total aggregate business of PSBs reached Rs. 242.27 lakh crore.

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Robust credit growth of 12.4%, led by retail credit growth of 16.6%, agriculture credit growth of 12.9%, and 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%.

PSBs have sufficient capital and are well-positioned to satisfy the credit needs of every economic sector, with a focus on the infrastructure, MSME, and agricultural sectors. Improved systems and procedures for credit discipline, the identification and resolution of stressed assets, responsible lending, better governance, financial inclusion programs, technology adoption, etc., are the outcomes of the policy and process reforms.

As seen by the PSBs' current performance, these actions have contributed to the banking industry's overall stability and long-term financial health.

 

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