PSU banks profit crosses Rs. 1 lakh crore mark in FY23

Public sector banks’ cumulative profit crossed the Rs 1 lakh crore mark in financial year 2023, with market leader SBI accounting for nearly half of the total earnings.

From posting a total net loss of Rs 85,390 crore in 2017-18, PSBs have come a long way as their profit touched Rs 1,04,649 crore in 2022-23. These 12 PSBs witnessed 57% increase in total profit compared to Rs 66,540 crore earned in 2021-22.

Analysts said that higher interest income and improvement in management of non-performing assets or bad loans are among the key reasons for the improved profitability of the banks.

In percentage terms, Bank of Maharashtra had the highest net profit growth with 126% to Rs 2,602 crore, followed by UCO with a 100% rise to Rs 1,862 crore and Bank of Baroda with a 94% increase to Rs 14,110 crore. However, in absolute terms, SBI has reported an annual profit of Rs 50,232 crore in 2022-23, an increase of 59% over the preceding fiscal.