Public Sector Banks (PSBs) have shown a robust performance in the first half of FY25, with total business reaching Rs 236.04 lakh crore, marking an 11% year-on-year increase. The Ministry of Finance highlighted these figures in a statement on Tuesday, showcasing growth in various financial metrics.
Notable Growth in Credit and Deposits
According to the Ministry, the global credit and deposit portfolio of PSBs expanded by 12.9% and 9.5% YoY, standing at Rs 102.29 lakh crore and Rs 133.75 lakh crore, respectively. This growth underscores the strong credit uptake and the increasing depositor confidence in public sector banks
Profit and NPA Metrics Improve
The operating profit for PSBs in the first half of FY25 reached Rs 1,50,023 crore, reflecting a 14.4% YoY increase, while net profit grew even more significantly by 25.6% YoY, amounting to Rs 85,520 crore. The ministry also reported a decline in financial strain, with Gross Non-Performing Assets (NPA) dropping to 3.12% and Net NPA at 0.63% as of September 2024. This represents a reduction of 108 basis points (bps) and 34 bps YoY, respectively.
Strong Capital Adequacy
PSBs’ Capital-to-Risk Weighted Assets Ratio (CRAR) was recorded at 15.43% in September 2024, well above the regulatory requirement of 11.5%. This ratio, a key measure of a bank’s financial stability and resilience, indicates a solid buffer to protect against risks and promote depositor safety.
Advancements in Technology and Cybersecurity
The Ministry of Finance also noted PSBs’ advancements in adopting cutting-edge technologies, including artificial intelligence, cloud computing, and blockchain. Banks are enhancing their digital infrastructure and implementing stringent cybersecurity measures to better serve customers and safeguard against threats.