The Ministry of Finance on Tuesday said that various measures taken by the Union government have contributed to the sustained financial health and robustness of the banking sector as a whole.
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The Ministry of Finance on Tuesday said that various measures taken by the Union government have contributed to the sustained financial health and robustness of the banking sector as a whole.
Sharing data pertaining to Public Sector Banks (PSBs), it said the banks have shown strong performance in the first half of FY 2024-25.
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In the first half, the PSBs’ aggregate business stood at Rs 236.04 lakh crore, showing an 11% YoY growth.
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The global credit and deposit portfolios grew by 12.9% and 9.5% YoY, respectively, reaching Rs 102.29 lakh crore and Rs 133.75 lakh crore.
PSBs operating profit for H1 FY25 stood at Rs 1,50,023 crore (14.4% YoY growth), while their net profit was Rs 85,520 crore (25.6% YoY growth).
Furthermore, the Gross and Net NPA stood at 3.12% and 0.63% as of September 2024, with Gross and Net NPA declining by 108 bps and 34 bps, respectively, YoY.
The Capital to RWA assets ratio (CRAR) stood at 15.43% as of September 2024, against the regulatory requirement of 11.5%.
PSBs have also shown significant progress in adopting new-age technologies like AI/ cloud/ Blockchain etc., upgrading existing digital infrastructure, putting in place necessary systems/controls to tackle cybersecurity risks, and taking multiple steps to provide best-in-class customer service, it said.
The ministry highlighted that major banking reforms like the Implementation of Enhanced Access and Service Excellence (EASE), the enactment of the Insolvency and Bankruptcy Code (IBC), putting in place a robust Governance Framework, setting up of National Asset Reconstruction Company Ltd. (NARCL), and the amalgamation of PSBs, among others, were undertaken in last few years in the banking sector.
It also said that the review meetings chaired by the Union Finance Minister facilitated deliberations on a range of current and emerging issues with the Chief Executives of PSBs.
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