PSU Banks Annual Profit may touch record high of ₹1 lakh crore in FY 2023

Public Sector Banks Annual Profit may touch record high of ₹1 lakh crore in FY 2023

New Delhi: April 9, 2023: The annual profit of public sector banks is expected to touch ₹1 lakh crore in FY 2023. Public sector banks in the first quarter posted around ₹15,306 crore in gross profit, which increased in the second quarter to ₹ 25,685 crore and in the third quarter ₹ 29,175 crores.

Profits of PSU banks: Profits of public sector banks (PSBs) are expected to reach a record ₹1 lakh crore in the ended financial year, with the banks performing well in the March quarter.

Public sector banks’ performance may rise to new highs with a reduction in bad loans and healthy credit growth. A senior bank official believes that the country’s largest lender, State Bank of India (SBI), in the fiscal year ending March 2023 will have ₹40,000 crores in profits.

In the first nine months of the financial year 2022-23, SBI has a total of ₹33,538 crore in profit, compared to ₹31,675.98 crore is more than Rs.

Similarly, other public sector banks are also likely to achieve better results based on reduction in non-performing assets ie NPAs, double-digit loan growth and rising interest rates.

In the first nine months of the financial year 2022-23, all 12 public sector banks totaled Rs. 70,166 crore in profit, compared to ₹48,983 crore which is 43 percent more than Rs.

Punjab and Sindh Bank MD Swaroop Kumar Saha told PTI, “This trend will continue in the fourth quarter as well.

In the fourth quarter, public sector banks posted around Rs. 30,000 crores is every possibility. Thus, the total profit of these banks in the financial year 2022-23 will be around one lakh crore rupees.”

However, Saha admitted that rising deposit rates and decline in current and savings accounts (CASA) will reduce net all-bank interest, putting pressure on margins. He said that most banks reported good credit growth in the fourth quarter despite the rise in interest rates.

In the first quarter, public sector banks posted around ₹15,306 crore in net profit, which increased in the second quarter to ₹25,685 crore and in the third quarter ₹ 29,175 crores.

All other public sector banks and Punjab National Bank (PNB) reported an increase in net profit in the December quarter.

PNB’s net profit for the October-December 2022 quarter fell 44 percent to ₹ 628 crores. During this period, SBI grew by 68 percent to ₹14,205 crore recorded the highest net profit.

Financial provisioning for bad loans of PSBs is likely to decline on a quarter-on-quarter basis, said brokerage firm MK Global Financial Services Ltd in its research report.

This reduction can be attributed to reduction in NPAs and large outstanding financial provisions. As far as private sector banks are concerned, their profit in the third quarter rose by 33 percent from a year ago to ₹36,512 crores.

Except for Bandhan Bank and Yes Bank, all other private sector banks saw an increase in their net profit in the third quarter.

Read more Business Stories at SugerMint. Follow us on Twitter, Instagram, Facebook, LinkedIn for for latest business news and SME updates.