PSBs show robust performance in H1, business grows 11%: FinMin

PTI New Delhi/Mumbai: The finance ministry on Tuesday said public sector banks (PSBs) have shown robust performance in the first half of the current fiscal year with a 26% growth in net profit, increase in business, and decline in non-performing assets (NPAs). The aggregate business of 12 public sector banks (PSBs), including State Bank of India and Punjab National Bank, stood at Rs 236.04 lakh crore during the April-September period, registering an 11% year-onyear (YoY) growth.

During the first six months of FY25, credit and deposit portfolio grew 12.9% and 9.5% YoY, and stood at Rs 102.29 lakh crore and Rs 133.75 lakh crore, respectively. The operating and net profit during the period was Rs 1,50,023 crore (14.4% YoY growth) and Rs 85,520 crore (25.6% YoY growth). The gross and net NPA stood at 3.12% and 0.63%, respectively, in September 2024, declining 108 bps and 34 bps YoY). In a statement, the finance ministry said banking sector reforms and regular monitoring have addressed many concerns and challenges, and resulted in setting up enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives, technology adoption, etc. "These measures have led to a sustained financial health and robustness of the banking sector as a whole, which is reflected in the current performance of the PSBs," the statement added.

SBI, HDFC Bank, ICICI Bank remain D-SIBS in 2024: RBI; State Bank of India, HDFC Bank and ICICI Bank have again been named as Domestic Systemically Important Banks (D-SIBs) by the Reserve Bank of India. The Reserve Bank on Wednesday came out with the list of D-SIBs. Inclusion in the list requires the lenders to maintain higher Common Equity Tier 1 (CET1) in addition to the capital conservation buffer as per the bucket under which it has been classified. The State Bank of India (SBI) continues to be in bucket 4, which will require the country's largest lender to keep an additional CET1 of 0.80%, as per the list.

HDFC Bank, the largest private sector lender, continues to be bracketed in bucket 2, under which it will have to maintain a higher CET1 by 0.40 per cent. The Central bank said the higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 01, 2025. "Hence, up to March 31, 2025, the DSIB surcharge applicable to SBI and HDFC Bank will be 0.60% and 0.20%, respectively," it said. ICICI Bank is classified in bucket 1, wherein the second largest private sector lender will have to maintain an additional 0.20% in the CET1 buffers.