New Delhi

In a remarkable turnaround, the public sector banks in India have scripted an inspiring tale of financial success. Cumulative profits of PSBs have crossed the ₹1 lakh crore-mark in the fiscal year ending March 2023.

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From a staggering net loss of Rs 85,390 crore in 2017-18, Indian PSBs have come a long way, with their profit soaring to 1 lakh crore rupees in 2022-23.

The market leader, State Bank of India, played a significant role, accounting for nearly half of the total earnings. SBI alone reported a whopping annual profit of Rs 50,232 crore in 2022-23, showcasing a remarkable 59% surge compared to the previous fiscal year.

Bank of Maharashtra witnessed the highest growth in net profit in percentage terms, recording a staggering 126 percent increase to Rs 2,602 crore. It was followed by UCO bank, which saw a net profit rise of 100 percent to Rs 1,862 crore, and Bank of Baroda, which reported a 94 percent increase to Rs 14,110 crore.

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Apart from Punjab National Bank, all other public sector banks witnessed impressive growth in their post-tax profits, showcasing the industry's transformation from record losses to record-breaking profits. This achievement can be attributed to the proactive initiatives and reforms undertaken by the Indian government.

The government's efforts over the past eight years focused on enhancing credit discipline, fostering responsible lending practices, and bolstering governance within the banking sector. Technological advancements, bank mergers, and the unwavering confidence of bankers have also played crucial roles in this turnaround story.

Financial analysts attribute the improved profitability of public sector banks to higher interest income and more effective management of non-performing assets or bad loans. These factors have worked in tandem to boost the banks' bottom line and restore investor confidence.