New Delhi [India], February 6 (ANI): Public Sector Banks (PSBs) have recorded the combined net profit surged to an all-time high of Rs 1,29,426 crore during April-December 2024, registering a 31.3 per cent year-on-year (YoY) growth.

According to the Ministry of Finance, the aggregate operating profit also witnessed a significant rise, reaching Rs 2,20,243 crore.

The financial stability of PSBs is further reinforced by a substantial improvement in asset quality. The net non-performing assets (NPA) ratio declined to a historic low of 0.59 per cent, with an aggregate net NPA outstanding of Rs 61,252 crore. This reflects the effectiveness of policy measures aimed at strengthening the banking sector.

In terms of business expansion, PSBs recorded an 11.0 per cent year-on-year growth, with total aggregate business reaching Rs 242.27 lakh crore.

Deposits grew by 9.8 per cent year-on-year, contributing to a robust financial position. Additionally, credit growth stood at 12.4 per cent, with retail credit expanding by 16.6 per cent, agriculture credit by 12.9 per cent, and MSME credit by 12.5 per cent.

Another key highlight is the strong capital position of PSBs. The Capital to Risk Weighted Assets Ratio (CRAR) stood at 14.83 per cent, significantly above the regulatory requirement of 11.5 per cent, ensuring financial stability and lending capacity.

The strong performance of PSBs underscores the effectiveness of policy and process reforms implemented in recent years. These include enhanced credit discipline, improved recognition and resolution of stressed assets, responsible lending practices, governance reforms, financial inclusion initiatives, and accelerated technology adoption.

With adequate capital buffers and a well-positioned credit portfolio, PSBs remain fully equipped to meet the credit demands across various sectors, with a special focus on agriculture, MSMEs, and infrastructure development.

The continued focus on strengthening the banking sector is expected to sustain the momentum of financial growth and contribute to overall economic expansion in the coming quarters. (ANI)