Public sector banks performed strongly in the first half of FY2025

New Delhi| Public sector banks (PSBs) performed brilliantly in the first half of FY 2024-25, with a total turnover of Rs 236.04 lakh crore, an increase of 11 per cent year on year (YOY). The Finance Ministry said this on Tuesday. According to the ministry, the global loan and deposit portfolio of PSBs grew by 12.9 per cent and 9.5 per cent year-on-year, and stood at Rs 102.29 lakh crore and Rs 133.75 lakh crore respectively.

Operating revenue and net profit stood at Rs 1,50,023 crore and Rs 85,520 crore respectively in the first half of FY2025. It recorded annual growth of 14.4 per cent and 25.6 per cent, respectively. Gross and net NPAs that reflect financial pressures on lenders stood at 3.12 per cent and 0.63 per cent as of September 2024. According to Finance Ministry data, both gross and net NPAs have declined by 108 bps and 34 bps respectively.

In the first half of FY25, the capital-to-risk weighted assets ratio (CRAR) stood at 15.43 per cent in September-24, while the regulatory requirement stands at 11.5 per cent. The CRAR ratio compares capital to risk-weighted assets and is monitored on behalf of regulators to determine the risk of bank failure. It is used to protect depositors and promote the stability and efficiency of financial systems around the world.

The ministry further said that public sector banks have also made significant progress in adopting new technologies like Artificial Intelligence, Cloud and Blockchain technology etc. Public sector banks are also updating the existing digital infrastructure, installing necessary systems and controls to deal with cyber security risks and taking several steps to provide best services to customers.

Union Finance Minister Nirmala Sitharaman chaired a meeting on Tuesday and discussed several current and emerging issues with CEOs of public sector banks, the ministry said. The ministry said reforms and regular monitoring have addressed many concerns and challenges, and have resulted in advanced systems and processes for credit discipline, identification and resolution of stressed assets, responsible lending, better governance, financial inclusion initiatives, technology adoption, etc. Have been established. These measures maintain the financial health and strength of the entire Indian banking sector, as reflected in the current performance of public sector banks.