Public Sector Banks’ Profit Surpasses ₹1.4 Lakh Crore in FY24

In the financial year ending March 2024, the cumulative profit of public sector banks (PSBs) surged, reaching over ₹1.4 lakh crore, marking a significant 35% increase from the previous year’s earnings of ₹1.04 lakh crore. State Bank of India (SBI) emerged as a major contributor, accounting for over 40% of the total earnings.

Key Highlights

SBI Leads with 22% Growth

SBI, the market leader, reported a profit of ₹61,077 crore, reflecting a robust 22% increase from the preceding fiscal year.

Notable Profit Surge Among PSBs

Punjab National Bank recorded the highest net profit growth percentage at 228%, followed by Union Bank of India with 62% and Central Bank of India with 61% rise.

Significant Profit Growth

Several PSBs witnessed substantial profit growth, including Bank of India (57%), Bank of Maharashtra (56%), and Indian Bank (53%).

Punjab & Sind Bank’s Decline

Punjab & Sind Bank experienced a 55% decline in net profit, contrasting with the industry’s overall positive trend.

High Earning PSBs

Bank of Baroda and Canara Bank reported annual profits exceeding ₹10,000 crore, with ₹17,788 crore and ₹14,554 crore respectively.

Turnaround Story

The PSB sector has transitioned from significant losses in FY18 to record profits in FY24, attributed to government initiatives and reforms spearheaded by Prime Minister Narendra Modi and key officials.

Government’s 4R Strategy

The government implemented a comprehensive strategy involving Recognizing NPAs transparently, Resolution and recovery, Recapitalizing PSBs, and Reforms in the financial ecosystem.

Recapitalization Program’s Impact

With an infusion of ₹3,10,997 crore over five financial years, PSBs received vital support, averting potential defaults.

Impact of Reforms

Reforms focused on enhancing credit discipline, responsible lending, governance improvements, technological adoption, and bank amalgamations, fostering confidence among bankers and stakeholders.