Current Affairs   »   Banking Current Affairs 2022   »   Public sector banks doubled their Net...

Public Sector Banks doubled their Net Profit to almost Rs 66,500 crore in FY22

Public sector banks (PSBs) more than quadrupled their net profit in the fiscal year 2021-2022. During the financial year 2021-22, the aggregate profit of 12 state-owned banks was Rs 66,539 crore, up 110 percent from Rs 31,816 crore in the previous year. For the first time in years, all 12 state-owned banks made a profit. This was also a significant improvement over FY18, when just two of the 21 PSBs declared a profit.

Banking Current Affairs 2022

Key Points:

  • Only two PSBs (Central Bank and Punjab & Sind Bank) declared losses in FY21, dragging down the overall net profit.
  • Profitability has increased as a result of the conclusion of the bad loan clean-up and economies of scale gained through the merger of ten state-owned banks.
  • Other factors include the Reserve Bank of India’s (RBI) cheap liquidity and growth categories such as retail lending.

List of Banks that generated highest profit:

SBI has the greatest net profit of all PSBs and the Bank of Baroda achieved the highest revenue increase:

  • SBI had the largest net profit, at Rs 31,675 crore, up 55 percent from the previous year.
  • The country’s largest bank accounts for nearly half of all public-sector bank profits. Following SBI, Bank of Baroda earned 10% of PSB earnings with a net profit of Rs 7,272 crore, followed by Canara Bank with a net profit of Rs 5,678 crore, accounting for 8% of total net profit.
  • Aside from the two banks that reversed their fortunes this year, Bank of Baroda posted the biggest revenue increase, followed by UCO Bank.
  • PSBs have been able to pay more to the dividend because of higher profitability, which will benefit the government, which has been working with reduced RBI dividends. The total dividend paid by public sector banks exceeds Rs 8,000 crore.

Bank of Maharashtra had an NPA rate of less than 1%:

  • The Bank of Maharashtra has demonstrated the greatest improvement in deposits and advances, according to a bank union review of key financial indicators of PSBs.
  • It is also the only PSB with a net non-performing asset (NPA) of less than 1%. It also had the biggest increase in advances of 25%, driven by the retail category, which increased by 23%.

Net Profit of about Rs 91,000 crore was recorded by Private Banks:

  • Private banks made a net profit of approximately Rs 91,000 crore, up 29% over the previous year’s Rs 70,435 crore. HDFC Bank (Rs 36,961 crore), ICICI Bank (Rs 23,339 crore), Axis Bank (Rs 13,025 crore), Kotak Mahindra Bank (Rs 8,572 crore), IndusInd Bank (Rs 4,611 crore), and Federal Bank (Rs 4,611 crore) were the leading private banks.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

Find More Banking News Here

Public sector banks doubled their Net Profit to almost Rs 66,500 crore in FY22_50.1Public sector banks doubled their Net Profit to almost Rs 66,500 crore in FY22_60.1

Thank You, Your details have been submitted we will get back to you.

Leave a comment

Your email address will not be published. Required fields are marked *