Finance

PSB profits: Collective profit of 12 state-owned banks rises 110% in FY22. Here’s what’s behind the rise

The state-owned banks witnessed a sharp rise in their net profits during the financial year 2021-22. The overall profit accounted for Rs 66,539 crore, an increase of 110% over the last year’s Rs 31,816 crore.

Even after a phenomenal growth, the PSBs continue to lag behind the private banks. The private banks recorded a 29% higher profit of over Rs 91,000 crore as against Rs 70,435 crore last year, according to a Times of India report.

Here are the reasons that drove the rise in collective profits of these state-owned banks:

  1. Bad loans pressure has gown down which has increased profitability
  2. Easy liquidity during the pandemic by RBI which improved opportunities to earn in treasury operations.
  3. Economies of scale after 10-state owned banks amalgamated
  4. Rise in high growth segments like retail has also helped in driving the profits up

In FY21, Central Bank and Punjab & are the two banks which reported a loss dragging down the overall profits of the public sector banks.

The

recorded the highest profit of Rs.31,675 crore accounting to 47% of the total profits of PSBs. and recorded a profit of Rs.7,272 crore and Rs.5,678 crore respectively.

Bank of Baroda also generated the highest revenue in FY22 followed by

, This growth has helped the collective dividend of PSBs to reach over Rs.8,000 crore.

Bank of Maharashtra became the first bank to record net non-performing assets (NPAs) below 1% followed by highest growth in deposits & advances driven by the retail sector.

(Rs 36,961 crore), (Rs 23,339 crore), (Rs 13,025 crore), (Rs 8,572 crore), (Rs 4,611 crore) and (Rs 1889 crore) were some of the private banks to contribute towards the growth.

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button