All 12 public sector banks earned a cumulative profit of about ₹15,306 crore, registering a 9.2% growth annually, despite poor showing by large lenders like SBI and PNB, PTI reported.
According to quarterly numbers published by public sector lenders, during the April-June period of the previous fiscal, state-owned banks recorded a total profit of ₹14,013 crore.
Out of 12, three public sector banks (SBI, PNB, and Bank of India) reported a fall in profits ranging between 7-70%
SBI reported a 6.70 per cent drop in its standalone profit after tax at ₹6,068 crore for the quarter that ended June on account of mark-to-market (MTM) losses. The lender reported a profit after tax (PAT) of ₹6,504 crore on a standalone basis in the April-June quarter of fiscal 2022.
Meanwhile, MTM losses occur when the financial assets held are valued by the market at a price lower than the purchase price.
Punjab National Bank reported a 70 per cent drop in stand-alone net profit to ₹308.44 crore in the June quarter as against a net profit of ₹1,023.46 crore in the year-ago period.
The bank's operating profit in the June quarter fell to ₹5,379.21 crore.
On the other hand, the Bank of India posted a 22.08 per cent drop in its net profit to ₹561 crore in the first quarter of FY23 due to a fall in non-interest income and a rise in provisions for bad loans. The bank posted a net profit of ₹720 crore during the year-ago period.
The remaining Nine lenders recorded profits ranging from 3-117% during the first quarter of FY23. The highest percentage growth was recorded by the Bank of Maharashtra, which earned a profit of ₹452 crore against ₹208 crore in the year-ago period. It was followed by the Bank of Baroda, which increased its bottom line by 79% to ₹2,168 crore from ₹1,209 crore the previous year.
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