Barring Punjab National Bank (PNB), other PSBs have registered impressive annual growth.
New Delhi:
The cumulative profit of public sector banks crossed the Rs 1 lakh crore mark in the financial year ending March 2023, accounting for almost half of the total earnings of State Bank of India (SBI).
From posting a total net loss of Rs 85,390 crore in 2017-18, public sector banks (PSBs) have come a long way as their profit in 2022-23 is expected to reach Rs 1,04,649 crore, according to an analysis of their financial results. has reached.
These 12 PSBs saw a 57 per cent increase in total profit as compared to Rs 66,539.98 crore earned in 2021-22.
In percentage terms, Pune-based Bank of Maharashtra’s (BoM) net profit rose 126 per cent to Rs 2,602 crore, followed by UCO up 100 per cent to Rs 1,862 crore and Bank of Baroda up 94 per cent to Rs 1,862 crore. 14,110 crores.
However, in absolute terms, SBI has reported an annual profit of Rs 50,232 crore in 2022-23, showing a growth of 59 per cent over the previous financial year.
Barring Punjab National Bank (PNB), other PSBs have registered impressive annual growth in their profit after tax.
Delhi-headquartered PNB reported a 27 per cent decline in annual net profit to Rs 2,507 crore in the year ended March 2023 from Rs 3,457 crore in 2021-22.
The PSBs which have registered an annual profit of over Rs 10,000 crore are Bank of Baroda (Rs 14,110 crore) and Canara Bank (Rs 10,604 crore).
Other lenders such as Punjab and Sind Bank reported annual profit growth of 26 per cent (Rs 1,313 crore), Central Bank of India 51 per cent (Rs 1,582 crore), Indian Overseas Bank 23 per cent (Rs 2,099 crore), Bank of India 18 per cent (Rs 2,099 crore). per cent (Rs 4,023 crore), Indian Bank 34 per cent (Rs 5,282 crore) and Union Bank of India 61 per cent (Rs 8,433 crore).
PSB is a story of metamorphosis from record loss to record profit. The public sector banking industry’s story of blossoming from doom can be attributed to the initiatives and reforms undertaken by the government led by Prime Minister Narendra Modi along with former Finance Minister Arun Jaitley and Financial Services Secretary Rajiv Kumar and their successors. ,
The government has implemented a comprehensive 4R strategy: transparent recognition, resolution and recovery of NPAs, recapitalization of PSBs and reforming the financial ecosystem.
As part of the strategy, the government made an unprecedented investment of Rs 3,10,997 crore for recapitalization of PSBs during the last five financial years – 2016-17 to 2020-21. The recapitalization program provided the much needed support to the PSBs and prevented the possibility of any default on their part.
The reforms undertaken by the government over the last eight years addressed credit discipline, ensured responsible lending and improved governance. In addition, technology was adopted, banks were amalgamated and the general confidence of bankers was maintained.
In the latest March quarter or the fourth quarter of 2022-23, PSBs’ profit cumulatively increased by over 95 per cent to Rs 34,483 crore. 17,666 crore in the year-ago period.
Analysts said higher interest income and improvement in management of non-performing assets or bad loans are among the key reasons for better profitability of banks. PTI NKD DP CS HVA
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)