Published 17:34 IST, November 12th 2024
Public Sector Banks Records Strong Performance in 1st Half of FY25: Ministry of Finance
The Public Sector Banks (PSBs) reported a strong performance in the first half of the financial year 2024-25, with aggregate business standing at Rs 236.04 lakh
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Mumbai: Public Sector Banks (PSBs) reported a strong performance in first half of financial year 2024-25, with aggregate business standing at Rs 236.04 lakh crore, showing 11 per cent Year on Year (YoY) growth, Ministry of Finance said on Tuesday.
Public Sector Banks Record High Performance
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As per ministry, global credit and deposit portfolio of PSBs grew by 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.
In first half of financial year 2025, operating and net profit stood at Rs 1,50,023 crore which recorded 14.4 per cent YoY growth and Rs 85,520 crore or 25.6 per cent YoY growth respectively.
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Gross and Net NPA which shows financial strain on lenders, stood at 3.12 per cent and 0.63 per cent as on September 2024.
As per data of finance ministry, both Gross and Net NPA declined by 108 bps and 34 bps respectively YoY.
In first half of FY25, Capital-to-Risk weighted Assets Ratio (CRAR) stood at 15.43 per cent in Sep-24 against regulatory requirement of 11.5 per cent.
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CRAR ratio compares capital to risk-weighted assets and is watched by regulators to determine a bank's risk of failure. It's used to protect depositors and promote stability and efficiency of financial systems around world.
ministry furr ded that PSBs have also shown significant progress in opting new age technologies like Artificial intelligence, Cloud and Blockchain technologies etc.
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PSBs are also updating existing digital infrastructure, putting in place necessary systems and controls to tackle cyber security risks and taking multiple steps to provide best-in-class customer services.
Union Finance Minister Nirmala Sitharaman chaired a meeting on Tuesday and facilitated deliberations on a range of current and emerging issues with Chief Executives of PSBs, ministry ded.
It furr ded that reforms and regular monitoring have dressed 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 option etc.
se measures have led to a sustained financial health and robustness of Indian banking sector as a whole, as reflected in current performance of PSBs.
With Agency Inputs
17:34 IST, November 12th 2024