Public Sector Banks Report 26% Growth in Net Profit in FY 2024-25
| Category | Details |
|---|---|
| Financial Performance | - PSBs, including SBI, reported a net profit of ₹85,520 crore in H1 FY 2024-25, a 26% growth compared to ₹67,850 crore in the same period last year. |
| Governance Reforms | - Arm's-length selection of top management; non-executive chairpersons for nationalized banks; market-based recruitment for key leadership positions. |
| Capital Strengthening | - Increased capital retention improving CRAR; ₹61,964 crore distributed in dividends over the last 3 years. |
| Asset Quality Improvement | - Gross NPAs down to 3.12% (Sept 2024) from 14.58% (March 2018); Net NPAs below 1%. |
| Interventions | - Rigorous recoveries, better underwriting standards, and write-offs of legacy bad loans. |
| Asset Quality Review (AQR) | - Introduced by RBI in 2015; mandated transparent recognition of NPAs; reclassification of restructured loans. |
| Credit Growth | - PSBs driving credit growth in retail, MSMEs, and infrastructure sectors. |
| Green Finance and ESG Lending | - Focus on green finance and ESG lending supporting India's sustainability goals. |
| PSB Mergers | - No new PSB mergers planned; previous mergers led to synergies, economies of scale, and improved financial performance. |