Profit of Indian public sector banks surged by 40% in first nine months of FY24; check top performing lenders
For the first nine months of the current financial year, PSBs have earned a cumulative profit of ₹98,358 crore as compared to ₹70,166 crore in the year-ago period, an increase of 40.17%.
Public sector banks continued to post a decent set of numbers in the December quarter on the back of higher interest income, lower credit costs, and improved asset quality. The combined profit of 12 Indian public sector banks (PSBs) in Q3 FY24 jumped 3.84% to ₹30,297 crore as compared to ₹29,175 crore recorded in the same period last year.
For the first nine months of the current financial year, PSBs have earned a cumulative profit of ₹98,358 crore as compared to ₹70,166 crore in the year-ago period, an increase of 40.17%. In Q1 and Q2 of the current fiscal year, public sector banks earned a cumulative profit of about ₹34,418 crore and ₹33,643 crore, respectively.
Punjab National Bank emerged as the top performer in terms of percentage growth in profit as the net profit of the bank grew by 253% YoY in Q3 to ₹2,223 crore. This was the highest profit in the last 15 quarters, driven by higher interest income and improved asset quality.
Bank of India secured the second position with a net profit growth of over 62% YoY, reaching ₹1,870 crore, on account of the decline in bad loans.
Union Bank of India followed closely, posting a 60% growth in the net profit to ₹3,590 crore in Q3 FY24, as compared to a profit of ₹2,245 crore in the December quarter of FY23. Its other income jumped up sharply by 15.37% YoY to ₹3,774 crore.
Likewise, Central Bank of India delivered a 56% YoY rise in Q3 net profit to ₹718 crore as compared to a net profit of ₹458 crore in Q3 FY23.
Bank of Maharashtra also posted a healthy performance in Q3 FY24, with its net profit growing 34% to reach ₹1,036 crore. During the same period of the last year, the bank recorded a net profit of ₹775 crore.
The bank recorded the highest growth rate in terms of deposit mobilisation among public sector lenders at a time when most lenders are facing difficulty in achieving double-digit growth. Out of 12 public sector banks, only BoM and State Bank of India (SBI) could log double-digit growth in deposits in the third quarter ended December 2023, as per the PTI report.
Indian Overseas Bank, Canara Bank, and Bank of Baroda recorded year-on-year growth rates of 30.27%, 27%, and 19%, respectively, in their standalone net profits.
SBI reported a drop in its standalone net profit by 35.50% YoY to ₹9,164 crore, affected by higher wage provisions and soft other income. In 3Q, SBIN made wage-related provisions of ₹6,300 crore (for a 17% wage hike).
Punjab & Sind Bank and UCO Bank also experienced declines in the standalone net profit for the same period, with drops of 69% and 23%, respectively, year-on-year.
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