New Delhi, Nov 12 (PTI) The finance ministry on Tuesday said public sector banks (PSBs) have shown robust performance in the first half of the current fiscal year with a 26 per cent growth in net profit, increase in business and decline in non-performing assets (NPAs).
The aggregate business of 12 public sector banks (PSBs), including State Bank of India and Punjab National Bank, stood at Rs 236.04 lakh crore during the April-September period, registering an 11 per cent year-on-year (YoY) growth.
During the first six months of FY25, credit and deposit portfolio grew 12.9 per cent and 9.5 per cent YoY, and stood at Rs 102.29 lakh crore and Rs 133.75 lakh crore, respectively.
The operating and net profit during the period was Rs 1,50,023 crore (14.4 per cent YoY growth) and Rs 85,520 crore (25.6 per cent YoY growth).
The gross and net NPA stood at 3.12 per cent and 0.63 per cent, respectively, in September 2024, declining 108 bps and 34 bps YoY).
In a statement, the finance ministry said banking sector reforms and regular monitoring have addressed many concerns and challenges, and resulted in setting up enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives, technology adoption, etc.
"These measures have led to a sustained financial health and robustness of the banking sector as a whole, which is reflected in the current performance of the PSBs," the statement added.
PSBs have also shown significant progress in adopting new age technologies like AI/cloud/blockchain, etc., upgrade of existing digital infrastructure, putting in place necessary systems/controls to tackle cyber security risks and taking multiple steps to provide best-in-class customer services, it said.
The ministry further said major banking reforms such as implementation of enhance access and service excellence (EASE), enactment of Insolvency and Bankruptcy Code (IBC), putting in place a robust governance framework, setting up of National Asset Reconstruction Company Ltd (NARCL), amalgamation of PSBs, among others, were undertaken in the last few years.
The review meetings chaired by Finance Minister Nirmala Sitharaman also facilitated deliberations on a range of current and emerging issues with the chief executives of PSBs.