Public sector banks (PSBs) have as soon as once more posted stellar efficiency by registering more than double revenue of Rs 34,774 crore for the primary quarter ended June 2023. During the April-June interval of the earlier fiscal, all 12 state-owned banks had recorded a complete revenue of Rs 15,306 crore, in accordance to quarterly numbers printed by public sector lenders.
The high-interest regime helped banks to earn web curiosity margin (NIM) through the quarter. Most banks had recorded NIM of over 3 per cent. Pune-based Bank of Maharashtra posted the best NIM of 3.86 per cent, adopted by Central Bank at 3.62 per cent and Indian Bank at 3.61 per cent through the quarter.
During the primary quarter, 4 lenders logged a revenue of over 100 per cent. The highest share progress was recorded by Punjab National Bank, which earned a revenue of Rs 1,255 crore towards Rs 308 crore in the identical quarter of the earlier yr, a progress of 307 per cent.
It was adopted by the State Bank of India (SBI), which recorded a 178 per cent backside line progress at Rs 16,884 crore and the Bank of India with a 176 per cent surge, earned Rs 1,551 crore revenue.
SBI’s highest-ever quarterly revenue of Rs 16,884 crore is about 50 per cent of the whole revenue earned by PSBs. During FY23 too, SBI’s contribution was about 50 per cent, when the cumulative revenue of these banks was Rs 1.05 lakh crore.
Another 5 PSBs posted progress between 50 and 100 per cent. This pack was led by the Bank of Maharashtra, which clocked a 95 per cent rise in web revenue at Rs 882 crore. It was adopted by Bank of Baroda recording a progress of 88 per cent to Rs 4,070 crore and UCO Bank by 81 per cent to Rs 581 crore.
The solely financial institution out of 12 booked decline in web revenue is Delhi-based Punjab & Sind Bank with a 25 per cent drop at Rs 153 crore on the finish of June 2023. Several measures taken by the federal government have helped in the revival of PSBs. As a consequence of 4R’s technique of recognition, decision, recapitalisation and reforms, non-performing property of banks have come down to a 10-year low at 3.9 per cent of whole advances. At the identical time, banks recovered unhealthy loans price over Rs 8.6 lakh crore in the final eight monetary years.
As half of the technique, the federal government infused an unprecedented Rs 3,10,997 crore to recapitalise PSBs over the past 5 monetary years — from 2016-17 to 2020-21. The recapitalisation programme offered much-needed help to the PSBs and prevented the chance of any default on their half.
The reforms undertaken by the federal government during the last eight years addressed credit score self-discipline, ensured accountable lending and improved governance. Besides, there was know-how adoption, amalgamation of banks and the final confidence of bankers.
