Public Sector Banks Record Rs 1.41-Lakh-Crore Profit In FY24: Finance Ministry
The PSBs have paid a total dividend of Rs 61,964 crore over the past three years.
Public sector banks have posted their highest-ever aggregate net profit of Rs 1.41 lakh crore in the last financial year in comparison to Rs 1.05 lakh crore in fiscal 2023, the Ministry of Finance said on Thursday, amid a debate over the performance of the PSBs.
The data came after Congress leader Rahul Gandhi raised concerns about the functioning of the PSBs under the Modi government, criticising its handling of banking reforms. Finance Minister Nirmala Sitharaman strongly countered these allegations, emphasising the substantial improvements made in the PSBs' performance, including the enhanced financial health of these institutions.
As of September, the PSBs have also shown reduction in their gross non-performing assets, with the ratio falling to 3.12% from 4.97% in March 2015, marking a recovery from the peak of 14.58% in March 2018, the ministry said in a release.
The PSBs have paid a total dividend of Rs 61,964 crore over the past three years. As of March, the gross advances of scheduled commercial banks stood at Rs 175 lakh crore, marking a significant increase from Rs 61 lakh crore in March 2014, it said.
Till September, the PSBs operated approximately 1.61 lakh branches across India, with about 1.01 lakh branches in rural and semi-urban areas, contributing significantly to financial inclusion, according to the ministry.
The introduction of citizen and staff-centric reforms, including the implementation of the 4Rs strategy — recognition, resolution, recapitalisation and reform — has helped address challenges faced by these institutions, leading to greater stability and transparency in operations, the release stated.
Initiatives like the PM Jan Dhan Yojana, Mudra, Stand-Up India and PM-SVANidhi have seen a surge in bank accounts and loans disbursed, particularly benefiting women. As of March, 54 crore Jan Dhan accounts and over 52 crore collateral-free loans were sanctioned, driving economic growth and inclusivity, it added.
