scorecardresearchProfit of PSBs increased by 9% to ₹15,306 crore in April-June quarter: Report

Profit of PSBs increased by 9% to 15,306 crore in April-June quarter: Report

Updated: 10 Aug 2022, 12:03 PM IST
TL;DR.
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. It was followed by the Bank of Baroda, which increased its bottom line by 79% to 2,168 crore.
MTM losses occur when the financial assets held are valued by the market at a price lower than the purchase price.

MTM losses occur when the financial assets held are valued by the market at a price lower than the purchase price.

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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First Published: 10 Aug 2022, 12:03 PM IST