Profit of public sector banks up 9.2% to Rs. 15,306 crore in Q1

All the 12 public sector banks earned a cumulative profit of about Rs 15,306 crore, registering a 9.2 per cent growth annually, despite poor showing by large lenders like SBI and PNB.

During the April-June period of the previous fiscal, state-owned banks recorded a total profit of Rs 14,013 crore, according to quarterly numbers published by public sector lenders.

Of the total 12, three lenders State Bank of India, Punjab National Bank and Bank of India — reported fall in their profits ranging from 7-70 per cent.

Decline in profit by these lenders has been attributed to Mark-to-Market (MTM) losses due to hardening bond yields.MTM losses occur when the financial assets held are valued by the market at a price lower than the purchase price.