The consolidated net profit of all Public Sector Banks (PSBs) increased by 32% to Rs.40,991 crore in the first half of FY23.
The SBI reported the highest profit ever for the second quarter at Rs.13,265 crore. This was 74% higher than the same quarter last year when compared to last year.
“The ongoing efforts of our government to reduce NPAs and further enhance the health of PSBs are now showing tangible results. All 12 PSBs announced a net profit of Rs 25,685 crore in the second quarter of FY23 and a total of Rs 40,991 crore in the first half of FY23, an increase of 50 % and 31.6%, respectively (on an annual basis), Sitharaman said in a tweet.
It added that Canara Bank’s profit increased by 89% to Rs.2,525 crore over the second quarter of the previous financial year.
In another tweet, she added that UCO Bank, which is located in Kolkata, saw a 145% increase in second quarter profit to Rs 504 crore, while Bank of Baroda saw an increase of 58.70% to Rs 3,312.42 crore.
Punjab National Bank (PNB) and Bank of India, two of the 12 lenders, reported a drop in profits of between 9 and 63 percent. Higher provisions for bad loans have been blamed for deteriorating profits for these lenders.
The PNB said the increase in provisions for bad loans was the main reason for the decline in net profit. Compared to the second quarter of FY22, the bank’s provisions increased to Rs.3,556 crore from Rs.2,693 crore.
The Bank of India (BoI), another state-owned bank, reported that total provisions more than quadrupled to Rs 1,912 crore in the quarter from Rs 894 crore a year earlier. The majority of provisions were placed on the state government’s standard accounts where payments were delayed, necessitating the need for provisions after an RBI inspection.
Ten lenders reported profits in the second quarter of FY23 that ranged from 13 to 145%. UCO Bank and Maharashtra Bank saw the largest percentage rises during the same quarter of the previous financial year, at 145% and 103% respectively.