Public Sector Banks Showcase Resilience with Q3 Profits

Public Sector Banks Showcase Resilience with Q3 Profits

VoM News Desk | February 13, 2024 | 04:31 PM IST | Breaking News | Follow on Google News

Public Sector Banks Showcase Resilience with Q3 Profits

Public Sector Banks Showcase Resilience with Q3 Profits

Public sector banks (PSBs) in India demonstrated resilience in the December quarter, posting promising figures. The combined profit of 12 PSBs for Q3 FY24 witnessed a 3.84% YoY surge, reaching ₹30,297 crore. This positive performance is attributed to higher interest income, reduced credit costs, and enhanced asset quality.

Top Performers and Growth Rates

• Punjab National Bank (PNB): PNB emerged as the leader with a remarkable 253% YoY growth in net profit, totaling ₹2,223 crore in Q3. This achievement marks the bank’s highest profit in the last 15 quarters, fueled by increased interest income and improved asset quality.
• Bank of India: Securing the second position, Bank of India experienced over 62% YoY growth in net profit, amounting to ₹1,870 crore. This growth is linked to a reduction in bad loans.
• Union Bank of India: Following closely, Union Bank of India posted a robust 60% growth in net profit, reaching ₹3,590 crore in Q3 FY24, compared to ₹2,245 crore in the same period the previous fiscal year. The bank’s other income also surged significantly by 15.37% YoY to ₹3,774 crore.
• Central Bank of India: Displaying a 56% YoY rise in net profit for Q3, Central Bank of India reached ₹718 crore, showcasing a notable improvement from ₹458 crore in Q3 FY23.
• Bank of Maharashtra: Delivering a healthy performance, Bank of Maharashtra recorded a 34% YoY growth in net profit, totaling ₹1,036 crore in Q3 FY24.

Deposit Mobilization Leadership

Bank of Maharashtra achieved the highest growth rate in deposit mobilization among public sector lenders during Q3, standing out as one of the two banks accomplishing double-digit growth. Only Bank of Maharashtra and State Bank of India (SBI) achieved this feat.

Mixed Results for Other Banks

While several PSBs exhibited robust growth, State Bank of India reported a 35.50% YoY decline in standalone net profit for Q3 FY24, reaching ₹9,164 crore. The impact was attributed to higher wage provisions and soft other income, with wage-related provisions amounting to ₹6,300 crore.

Punjab & Sind Bank and UCO Bank faced declines in standalone net profit, dropping by 69% and 23% YoY, respectively, for the same period. The varied results emphasize the diverse challenges faced by PSBs in navigating the economic landscape.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.