PSU banks’ profit crosses Rs 1 lakh crore mark in FY23

NEW DELHI: Public sector banks’ cumulative profit crossed the Rs 1 lakh crore mark in financial year 2023, with market leader SBI accounting for nearly half of the total earnings.
From posting a total net loss of Rs 85,390 crore in 2017-18, PSBs have come a long way as their profit touched Rs 1,04,649 crore in 2022-23. These 12 PSBs witnessed 57% increase in total profit compared to Rs 66,540 crore earned in 2021-22.
Analysts said that higher interest income and improvement in management of non-performing assets or bad loans are among the key reasons for the improved profitability of the banks.
In percentage terms, Bank of Maharashtra had the highest net profit growth with 126% to Rs 2,602 crore, followed by UCO with a 100% rise to Rs 1,862 crore and Bank of Baroda with a 94% increase to Rs 14,110 crore. However, in absolute terms, SBI has reported an annual profit of Rs 50,232 crore in 2022-23, an increase of 59% over the preceding fiscal.
Except for Punjab National Bank (PNB), other PSBs have reported strong annual increases in their profit. PNB posted a 27% decline in annual net profit from Rs 3,457 crore in 2021-22 to Rs 2,507 crore in the year ended March 2023.
The PSBs which reported an annual profit in excess of Rs 10,000 crore are Bank of Baroda (Rs 14,110 crore) and Canara Bank (Rs 10,604 crore).
Other lenders like Punjab and Sind Bank posted an annual profit growth 26% (Rs 1,313 crore), Central Bank of India 51% (Rs 1,582 crore), Indian Overseas Bank 23% (Rs 2,099 crore), Bank of India 18% (Rs 4,023 crore), Indian Bank 34% (Rs 5,282 crore) and Union Bank of India 61% (Rs 8,433 crore).
In the March quarter, PSBs’ profit cumulatively increased more than 95% to Rs 34,483 crore.

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