Public Sector Banks Shine with Strong Financial Performance

Public Sector Banks have shown impressive growth in the first half of FY 2025, with notable improvements in credit, deposits, and profitability. Advanced technology adoption and systemic reforms have significantly contributed to their financial health and resilience, as reported by the Ministry of Finance.

The Public Sector Banks (PSBs) demonstrated a robust financial performance during the first half of the 2024-25 fiscal year, with their cumulative business market reaching Rs 236.04 lakh crore, an 11% increase Year on Year (YoY), according to the Ministry of Finance.

Global credit and deposit portfolios grew by 12.9% and 9.5% YoY, amounting to Rs. 102.29 lakh crore and Rs. 133.75 lakh crore, respectively. In addition, operating and net profits marked notable growths of 14.4% and 25.6%, reaching Rs 1,50,023 crore and Rs 85,520 crore, respectively. The Gross and Net NPA rates decreased significantly, indicating improved financial conditions.

Capital adequacy metrics, exemplified by the Capital-to-Risk weighted Assets Ratio (CRAR) at 15.43%, surpass the required 11.5%, reflecting the sector's stability. Furthermore, PSBs continue to advance technologically, exploring AI and blockchain, enhancing cybersecurity, and refining customer service capabilities. Under the leadership of Finance Minister Nirmala Sitharaman, reforms addressed critical issues enhancing governance and financial discipline within the sector.

(With inputs from agencies.)