Public sector banks post record profit of ₹1.29 lakh crore in April-December period

The performance of Public Sector Banks (PSBs) has shown significant improvement in key financial parameters during the first three quarters of the current fiscal year, the finance ministry said on Thursday.

The state-owned banks posted a record year-on-year net profit growth of 31.3% in the April-December period to reach an all-time high aggregate net profit of ₹1,29,426 crore, according to government data. The aggregate operating profit for the period stood at ₹2,20,243 crore.

Improved asset quality is also visible from the significantly low net NPA ratio at 0.59%, the finance ministry said in a statement. The total net NPA outstanding of PSBs stood at Rs 61,252 crore as of December 31, 2024.

The aggregate business of PSBs grew by 11% year-on-year, driven by an improved deposit growth of 9.8%. The total aggregate business reached ₹242.27 lakh crore during the first nine months of FY25.

Credit growth remained strong at 12.4%, supported by robust growth in key segments. Retail credit grew by 16.6%, agriculture credit by 12.9%, and credit to Micro, Small, and Medium Enterprises (MSMEs) by 12.5%.

PSBs have also strengthened their capital buffers, with the aggregate capital to risk weighted assets ratio (CRAR) at 14.83%, well above the minimum regulatory requirement of 11.5%.

“PSBs are adequately capitalized and well poised to meet the credit demands of all sectors of the economy, with a special focus on agriculture, MSMEs, and the infrastructure sector,” the statement said.

“The policy and process reforms have resulted in enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives, technology adoption etc.,” it added.