Boosting Banking: PSBs Enjoy Profit Surge Amidst Reforms

The finance ministry reports a substantial 26% growth in net profits for public sector banks (PSBs) in the fiscal year's first half. Initiatives like EASE and IBC, alongside advances in tech and governance, have strengthened the sector, contributing to PSBs' improved performance and reduced NPAs.

Public sector banks (PSBs) in India have recorded a robust 26% increase in net profits during the first half of this fiscal year, the finance ministry announced on Tuesday. This comes alongside an impressive 11% year-on-year (YoY) growth in aggregate business, reaching Rs 236.04 lakh crore.

The statement revealed that credit and deposit portfolios for the banks grew by 12.9% and 9.5% YoY, standing at Rs 102.29 lakh crore and Rs 133.75 lakh crore, respectively. Operating and net profits saw a rise, standing at Rs 1,50,023 crore and Rs 85,520 crore, respectively. Notably, the non-performing assets (NPAs) showed a decline.

The ministry attributed these gains to comprehensive banking sector reforms, including the implementation of Enhance Access and Service Excellence (EASE), the Insolvency and Bankruptcy Code (IBC), and technological advancements. Regular assessments conducted by Finance Minister Nirmala Sitharaman have further facilitated the banks' progress.

(With inputs from agencies.)