The profit of government banks is expected to be this much in the last financial year, this bank will be at the forefront

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With the good performance of banks in the March quarter, the profit record of public sector banks (PSBs) is expected to reach one lakh crore rupees in the ended financial year. The performance of public sector banks can go to new heights due to the reduction in the number of bad loans and good loan growth.

A senior bank official believes that the country’s largest bank SBI will be able to reach its target by March 2023. Can earn a profit of more than Rs 40,000 crore in the ended financial year. In the first nine months of the financial year 2022-23, SBI had made a total profit of Rs 33,538 crore, which is slightly higher than Rs 31,675.98 crore in the same period a year ago.

Profit higher than the year before

Similarly, other public sector banks are also expected to see a decline in NPAs, more than 10 per cent growth in loans and improve profits due to increase in interest rates.

Finance All 12 public sector banks had posted a net profit of Rs 70,166 crore in the first nine months of 2022-23, up 43 per cent from Rs 48,983 crore in the same period a year ago.

< Swaroop Kumar Saha, Managing Director of Punjab and Sindh Bank told PTI-Bhasha, ‘‘This trend will continue in the fourth quarter as well. There is every possibility that public sector banks will earn around Rs 30,000 crore in the fourth quarter. In this way, the total profit of these banks in the financial year 2022-23 will be about one lakh crore rupees.’’

The first nine months were like this

Public sector banks in the first quarter 15,306 crore, which increased to Rs 25,685 crore in the second quarter and Rs 29,175 crore in the third quarter. Barring Punjab National Bank (PNB), all other public sector banks reported an increase in net profit in the December quarter.

The condition of two big public sector banks

For bad loans Due to higher provisioning, PNB’s net profit declined by 44 percent to Rs 628 crore in the October-December 2022 quarter. During this period, SBI registered the highest net profit of Rs 14,205 crore with a growth of 68 percent.

However, Saha admitted that due to rising deposit rates and decline in current accounts and savings accounts (CASA), There will be pressure on the net interest margin of all banks. He said that most banks posted good credit growth in the fourth quarter despite rising interest rates.

These factors will have an impact

brokerage firm MK Global Financial Services Ltd in its research The report said that PSBs’ financial provisioning for bad loans is likely to decline on a quarter-on-quarter basis. This can come down due to reduction in NPAs and the pending financial provision to a large extent.

All private banks have improved

As far as private sector banks are concerned, Their profit in the third quarter increased by 33 percent to Rs 36,512 crore compared to a year ago. Barring Bandhan Bank and Yes Bank, all other private banks had an increase in net profit in the third quarter.

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