PSBs In India Clock File Rs 1.41 Lakh Crore In Web Revenue In FY24 | Financial system Information

New Delhi: Public Sector Banks (PSBs) in India registered their highest-ever mixture web revenue of Rs 1.41 lakh crore within the monetary 12 months 2023-24, the Ministry of Finance mentioned on Sunday. 

The gross non-performing property (GNPA) ratio steeply declined, dropping to three.12 per cent in September 2024. Demonstrating continued momentum, they registered a web revenue of Rs 85,5206,000 crore within the first half of 2024-25.

Along with their stellar efficiency, PSBs have contributed considerably to shareholder returns, paying a complete dividend of Rs 61,964 crore over the previous three years. This exceptional monetary progress underscores the sector’s operational effectivity, improved asset high quality, and stronger capital base.

Past their monetary achievements, these banks have performed a key position in selling monetary inclusion. They’ve carried out essential authorities schemes just like the Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana, to call a couple of.

A turning level got here in 2015 when the Reserve Financial institution of India (RBI) initiated the Asset High quality Evaluate (AQR). This train aimed to determine and deal with hidden stress in banks by mandating the clear recognition of NPAs.

It additionally reclassified beforehand restructured loans as NPAs, leading to a pointy improve in reported NPAs. The heightened provisioning necessities throughout this era impacted the monetary parameters of banks, limiting their capacity to lend and assist productive sectors of the financial system, mentioned the ministry.

One other indicator of the improved resilience of PSBs is their Capital to Threat (Weighted) Property Ratio (CRAR), which rose by 3,983 foundation factors to fifteen.43 per cent in September 2024, up from 11.45 per cent in March 2015.

Notably, this CRAR far exceeds the Reserve Financial institution of India’s (RBI) minimal requirement of 11.5 per cent, underscoring the strengthened monetary well being of those establishments.

Public Sector Banks in India have made exceptional strides lately, attaining unprecedented monetary milestones and contributing considerably to the nation’s financial stability and progress.