New Delhi, Feb 6
Public sector banks in India have achieved a record 31.3 pc growth in net profit during the first nine months (April-December) of the financial year 2024-25. Their total net profit reached an all-time high of ₹1,29,426 crore, the Finance Ministry announced on Thursday.
During this period, these banks earned an operating profit of ₹2,20,243 crore. The overall financial health of banks has also improved, with non-performing assets (NPA) dropping to just 0.59% of total loans. The total outstanding NPAs have reduced to ₹61,252 crore.
Strong Business and Credit Growth
Public sector banks saw a total business growth of 11%, supported by a 9.8% increase in deposits. Their total business now stands at ₹242.27 lakh crore.
Credit growth has been strong at 12.4%, driven by:
- Retail loans: 16.6% growth
- Agriculture loans: 12.9% growth
- MSME loans: 12.5% growth
This expansion in credit has played a key role in boosting economic growth and generating jobs.
Strong Capital Position and Banking Reforms
Government banks have maintained a capital-to-risk-weighted assets ratio (CRAR) of 14.83%, well above the required 11.5%, showing their financial strength. They are in a strong position to meet loan demands, especially in agriculture, small businesses (MSMEs), and infrastructure, which are key drivers of the economy.
Reforms in banking policies have helped improve:
- Loan approval processes
- Management of bad loans
- Responsible lending
- Use of technology in banking
- Financial inclusion initiatives
These improvements have strengthened the financial health of public sector banks, leading to their strong performance this year.
