Public sector banks delivered another strong performance in the December quarter as credit growth in the system remained strong. In Q3 FY23, the 12 PSBs posted a robust profit growth of 65 percent YoY to ₹29,175 crore. Sequentially, the net profit rose by 13.58 percent, PTI reported.
For the first quarter of the current fiscal year, public sector banks had earned a cumulative profit of about ₹15,306 crore, registering a 9.2% growth annually, while in the second quarter, the PSBs continued the same magnitude and posted a 50% YoY jump in combined net profit at ₹25,685 crore, said the report.
For the first nine months of the current financial year, PSBs have earned a cumulative profit of ₹70,166 crore as compared to ₹48,983 crore in the year-ago period, an increase of 43 percent, according to the report.
In Q3 FY23, the Bank of Maharashtra emerged as the top performer in terms of percentage growth in profit, said the report, adding that the Pune-headquartered lender recorded a 139 percent jump in profit to ₹775 crore.
BoM was followed by Kolkata-based UCO Bank, which posted a profit of ₹653 crore, 110 percent higher than its earnings in the third quarter of the previous fiscal, it added.
With regard to the Capital Adequacy Ratio, BoM at 17.53 percent was the highest among PSBs, followed by Canara Bank's at 16.72 percent and Indian Bank at 15.74 percent as on December 31, 2022, as per the report.
BoM and State Bank of India (SBI) were in the lowest quartile as far as gross non-performing assets (NPAs) and net NPAs were concerned, it said.
During the third quarter, SBI, the country's largest lender, reported its highest-ever profit of Rs. 14,205 crore. On a YoY basis, this was 68.46 percent higher than the same quarter a year ago. The strong earnings in the quarter were aided by margin expansion, treasury gains, and healthy loan growth.
For the first time since 2016, the overall dud assets of the bank fell below ₹1 lakh crore due to a drop in the stock of NPAs. In addition, provisions for non-performing assets nearly halved to ₹1,586 crore in the reporting quarter.
Similarly, Bank of Baroda reported its highest-ever quarterly net profit of ₹3,853 crore for the December quarter, compared to a net profit of ₹2,197 crore in the same quarter last year.
Canara Bank reported a 92 percent jump in profit at ₹2,882 crore in Q3FY23, helped by a rise in interest income and a decline in bad loans. Its net profit stood at ₹1,502 crore in the same quarter of the preceding financial year.
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