Public Sector Banks Records Strong Performance in 1st Half of FY25: Ministry of Finance

Mumbai: The Public Sector Banks (PSBs) reported a strong performance in the first half of the financial year 2024-25, with aggregate business standing at Rs 236.04 lakh crore, showing 11 per cent Year on Year (YoY) growth, the Ministry of Finance said on Tuesday.

Public Sector Banks Record High Performance

As per the ministry, the global credit and deposit portfolio of PSBs grew by 12.9 per cent and 9.5 per cent YoY, and stood at Rs. 102.29 lakh crore and Rs. 133.75 lakh crore respectively.

In the first half of the financial year 2025, the operating and net profit stood at Rs 1,50,023 crore which recorded 14.4 per cent YoY growth and Rs 85,520 crore or 25.6 per cent YoY growth respectively.

The Gross and Net NPA which shows the financial strain on the lenders, stood at 3.12 per cent and 0.63 per cent as on September 2024.

As per the data of the finance ministry, both Gross and Net NPA declined by 108 bps and 34 bps respectively YoY.In the first half of the FY25, the Capital-to-Risk weighted Assets Ratio (CRAR) stood at 15.43 per cent in Sep-24 against regulatory requirement of 11.5 per cent.

CRAR ratio compares capital to risk-weighted assets and is watched by regulators to determine a bank’s risk of failure. It’s used to protect depositors and promote the stability and efficiency of financial systems around the world.

The ministry further added that PSBs have also shown significant progress in adopting new age technologies like Artificial intelligence, Cloud and Blockchain technologies etc.

The PSBs are also updating existing digital infrastructure, putting in place necessary systems and controls to tackle cyber security risks and taking multiple steps to provide best-in-class customer services.

Union Finance Minister Nirmala Sitharaman chaired a meeting on Tuesday and facilitated deliberations on a range of current and emerging issues with the Chief Executives of PSBs, the ministry added.It further added that reforms and regular monitoring have addressed many concerns and challenges, and resulted in setting-up enhanced systems and processes for credit discipline, recognition and resolution of stressed assets, responsible lending, improved governance, financial inclusion initiatives, technology adoption etc.

These measures have led to a sustained financial health and robustness of the Indian banking sector as a whole, as reflected in the current performance of PSBs.

With Agency Inputs

  • Related Posts

    ‘Samvat 2082 Should Be Better Than The Last One; India Will Perform Better Vs. The World’ — Ashish Chauhan, NSE CEO

    Ashish Chauhan, CEO of the National Stock Exchange (NSE), on Tuesday said that Indian markets will be in a much better position in the new Hindu calendar year, Samvat 2082. Speaking to the reporters after the Muhurat trading session, Chauhan highlighted the progress India made ov Read More

    India’s Core Industries Index Rises 3% in September 2025, Led by Steel and Cement Growth

    India’s Index of Eight Core Industries (ICI) rose by 3 per cent in September 2025 compared to the same month last year, driven by strong performances in steel, cement, electricity, and fertilisers, according to provisional data released by the Ministry of Commerce and Industry. T Read More

    Leave a Reply

    Your email address will not be published. Required fields are marked *