Profit of Indian public sector banks surged by 40% in first nine months of FY24 (2024)

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.

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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.

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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.

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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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Published: 13 Feb 2024, 02:55 PM IST