Ministry of Finance on Tuesday said that public sector banks (PSBs) have shown a strong performance in the first half of the current financial year. The ministry said that during this period the net profit of public sector banks has increased by 26 percent. Apart from this, their turnover has also increased while non-performing assets (NPAs) have declined. The total business of 12 public sector banks, including State Bank of India and Punjab National Bank, stood at Rs 236.04 lakh crore during April-September. There was an increase of 11 percent on annual basis. Their debt increased by 12.9 per cent year-on-year to Rs 102.29 lakh crore during the first six months of financial year 2024-25. During this period, the deposit portfolio of public sector banks increased by 9.5 percent to Rs 133.75 lakh crore.
Operating profit increased by 14.4 percent
During the period under review, the operational profit of banks increased by 14.4 percent on annual basis to Rs 1,50,023 crore. Net profit increased by 25.6 percent to Rs 85,520 crore. The gross and net NPA of banks in September 2024 stood at 3.12 percent and 0.63 percent respectively. There was a decline of 1.08 percent and 0.34 percent respectively on annual basis. The Finance Ministry said in the statement that reforms and regular monitoring of the banking sector have addressed many concerns and challenges.
Instructions to give easy loan to agriculture sector
The Finance Ministry also said that it has asked public sector banks (PSBs) to take steps to meet the credit target of the agriculture sector during the current financial year. Financial Services Department Secretary M Nagaraju said this in a meeting with PSBs, NABARD and State Level Bankers Committee on Tuesday. During this, he reviewed the distribution of loans for agriculture-related activities like animal husbandry, dairy and fisheries. The Finance Ministry said on Wednesday that representatives of state governments, Department of Animal Husbandry and Dairying and Department of Fisheries also participated in the discussion.
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