Indian Public Sector Banks Shine in Q2FY24

Indian Public Sector Banks Shine in Q2FY24

VoM News Desk | November 6, 2023 | 03:01 PM IST | Breaking News | Follow on Google News

Indian Public Sector Banks Shine in Q2FY24

Indian Public Sector Banks Shine in Q2FY24

Public sector banks in India have maintained their impressive performance in the September quarter of fiscal year 2024, with several key factors contributing to their success.

Record-breaking Profits and Growth in Q2FY24

The combined profit of 12 Indian public sector banks (PSBs) in the second quarter of fiscal year 2024 (Q2FY24) showed remarkable growth, increasing by 31% to ₹33,643 crore, compared to ₹25,684 crore recorded in the same period the previous year. Looking at the H1FY24 performance, the 12 PSU lenders posted a net profit of ₹68,061 crore, marking a significant 66% increase over H1FY23’s net profit of ₹40,991 crore.

Leaders of the Pack: Punjab National Bank, Central Bank of India, and Union Bank of India

Punjab National Bank emerged as the leader, demonstrating the highest net profit growth in Q2FY24. On October 26, the bank reported an astonishing 327% year-on-year increase in net profit, reaching ₹1,756 crore in Q2FY24, compared to ₹411 crore in the same quarter the previous year. Additionally, the bank’s provisions decreased by 29.8% year-on-year to ₹3,444 crore in Q2FY24. Central Bank of India secured the second position with a remarkable net profit growth of over 90%, attributed to improvements in asset quality. The bank reported its highest-ever quarterly net profit of ₹605 crore in Q2FY24, compared to a net profit of ₹318 crore in Q2FY23. The gross NPA ratio of the bank dropped to 4.62% in Q2FY24 from 9.67% in Q2FY23, while the net NPA ratio stood at 1.64% in Q2FY24, down from 2.95% in Q2FY23. Union Bank of India closely followed, posting a 90% growth in net profit, reaching ₹3,511 crore in Q2FY24.

Notable Success Stories: Indian Bank and State Bank of India (SBI)

Indian Bank also delivered an impressive performance in Q2FY24, with its net profit growing by 62.2% to reach ₹1,988 crore. During the same period of the last year, the bank recorded a net profit of ₹1,225 crore. Meanwhile, State Bank of India (SBI), the country’s largest bank, delivered another strong performance in the September quarter, exceeding the Street estimates. The bank’s net profit for the quarter jumped by 8% to reach ₹14,330 crore, up from ₹13,264.5 crore in Q2FY23.

VoM News Desk

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