Public sector banks’ profits surge to Rs 1.4 lakh crore in FY’24

Public sector banks’ cumulative profit crossed Rs 1.4 lakh crore in the financial year ending March 2024, marking a 35% growth from the previous year’s Rs 1.04 lakh crore.

State Bank of India (SBI) led with a profit of Rs 61,077 crore, up 22% from the previous year. Punjab National Bank (PNB) recorded the highest percentage increase, with a 228% rise to Rs 8,245 crore. Union Bank of India and Central Bank of India also saw significant gains of 62% and 61%, respectively.

Only Punjab & Sind Bank reported a decline, with a 55% drop in profit to Rs 595 crore. Banks exceeding Rs 10,000 crore in annual profit included Bank of Baroda (Rs 17,788 crore) and Canara Bank (Rs 14,554 crore).

This turnaround from a record loss of Rs 85,390 crore in FY’18 is attributed to government-led reforms and the implementation of the 4R strategy: Recognising NPAs, Resolution and recovery, Recapitalising PSBs, and financial Reforms. Over the last nine years, the government infused Rs 3,10,997 crore to recapitalise PSBs, improving credit discipline, lending practices, and governance.