Public sector banks (PSBs) have recorded the highest-ever net profit of Rs 1.29 lakh crore in the first nine months of 2024-25, marking a 31.3% annual growth, the finance ministry said on Thursday.
The aggregate operating profit of PSBs stood at Rs 2.2 lakh crore in the first nine months of the financial year. The ministry said PSBs have also reported improved asset quality, robust business growth and adequate capital buffers. The PSBs reported an aggregate net non-performing asset (NPA) ratio at Rs 61,252 crore or 0.59%.
These state-run banks have shown aggregate business growth of 11% on year, with improved aggregate deposit growth at 9.8% on year. Total aggregate business of PSBs reached Rs 242.27 lakh crore.
Their robust credit growth of 12.4% was 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 aggregate capital to risk weighted assets ratio of 14.83%, significantly above the minimum requirement of 11.5%.
PSBs are adequately capitalized and well poised to meet credit demands of all sectors of the economy, with special thrust on agriculture, MSME and infrastructure sector, the ministry said.
The policy and process reforms have resulted in enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives and technology adoption, it said.