https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

PSU Banks Set to Cross Rs. 1.5 Lakh Crore Profit in FY’25; Low Deposit Mobilization a Concern

With the possibility of a rate cut in the upcoming Monetary Policy Committee (MPC) meeting, credit demand is expected to receive a significant boost.
Indian Masterminds Stories

Public Sector Banks (PSBs) in India are projected to surpass ₹1.5 lakh crore in cumulative profit for the financial year 2024-25, showcasing their robust recovery and improved operational efficiencies. However, challenges around low deposit mobilization and potential margin pressures remain key concerns, according to industry analysts.

PSBs have regained strength through the implementation of the 4Rs framework—Recognition, Recapitalization, Resolution, and Reform—a strategy credited for revitalizing the sector. Over the past three years, PSBs have also bolstered shareholder returns, distributing a total dividend of ₹61,964 crore.

With the possibility of a rate cut in the upcoming Monetary Policy Committee (MPC) meeting, credit demand is expected to receive a significant boost. However, analysts caution that the lag in declining deposit rates may compress margins in the near-to-medium term.

“We expect deposit rates to decline with a lag even if the rate cuts were to start from the upcoming MPC meeting, which would hurt margins. We are also closely monitoring asset quality trends and anticipate an uptick in credit costs by FY’26,” said Sachin Sachdeva, Vice President at ICRA.

As PSBs strive to balance profitability with challenges in deposit mobilization and asset quality, their role in driving India’s economic growth remains critical.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Indian Bureaucracy News Latest
IRSEE Joyanta Chakraborty Repatriated for Promotion; Dr Deepak Bagla Appointed Mission Director of Atal Innovation Mission
SBI_resized
SBI Strengthens Co-Lending Partnership with Paisalo to Reach More Small Businesses in Tier 2, 3 and Rural India
Union Minister Hardeep Singh Puri
Rudrasagar Blowout Contained: Union Minister Hardeep Singh Puri Commends ONGC & International Experts for Swift, Safe Resolution
RCB Parade Stampede
RCB Victory Stampede: Suspended IPS Dayananda Deposes, Inquiry Report Expected Soon; Public Urged to Submit Evidence
ONGC_resized
ONGC Successfully Caps Rudrasagar Gas Well Blowout After 15 Days of Intensive Effort, Global Experts End Crisis
406951-supreme-court-of-india-sc
Limited Manpower: SC Stays MP High Court Order Mandating SP-Led Supervision of Serious Crime Probes, Asks State to Submit SOP
Anurag Gupta Jharkhand
DGP Tenure Row: Jharkhand AG Issues Provisional Pay Slip to DGP Anurag Gupta Amid Tenure Extension Row
BEML Golden Peacock Award
BEML Wins Golden Peacock Eco-Innovation Award 2025 for India’s First All-Electric Mining Shovel - Details Inside
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-06-25 at 5.07
Why Has the DGCA Fined Air India Rs 5 Crore Since Privatisation?
Former Diplomat Ashok Sajjanhar
Iran Is Weakest Now, Needs a Face-Saver
WhatsApp Image 2025-06-23 at 12.39
Retired Officers Lead 7-Day Mission to Revive Betwa River with 55 Check Dams | Video Interview
ADVERTISEMENT
UPSC Stories
Sanish Kumar Singh
“If you want it badly enough, you’ll find a way,” Sanish Kumar Singh AIR 8, UPSC IFS 2024 
The real interview, he says, was much more humane. “The board was conversational. The chairman opened...
Raju Wagh
When the Battlefield Became a Study Room and a Dream Took Flight
Amid IED blasts and anti-Maoist operations in Bastar, CRPF Commando Raju Wagh taught village kids, studied...
WhatsApp Image 2025-06-18 at 10.31
"I Just Wanted to Breathe Again": The Man Who Fought Death and Made It to UPSC
Struck by COVID at the peak of his UPSC prep, Devanand Telgote spent months on ECMO, unsure he'd live,...
Social Media
Shailaja Chandra
“Nanis & Dadis Have a Brain”: Former IAS Officer Shailaja Chandra Weighs in on 1970s vs 2025 Life Debate - “This Generation Has It Better”
Responding to Viral Post on Middle-Class Struggles, Ex-Bureaucrat Offers Candid Reflection on Then and...
Tigress Arrowhead
The End of an Era: A Queen Falls - Ranthambore’s Iconic Tigress Arrowhead (T-84) Passes Away at 14, Hours After Daughter’s Relocation
Ranthambore mourns the loss of one of its fiercest and most beloved tigers, Arrowhead, the granddaughter...
Screenshot 2025-06-13 194001
Wild Elephant Disrupts Riverside Picnic, Sparks Debate on Human Encroachment; IFS Parveen Kumar Shares the Video - Watch Here!
Mr. Kaswan used the viral video, which has garnered over 1.5 lakh views, to highlight the risks of human...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Indian Bureaucracy News Latest
IRSEE Joyanta Chakraborty Repatriated for Promotion; Dr Deepak Bagla Appointed Mission Director of Atal Innovation Mission
SBI_resized
SBI Strengthens Co-Lending Partnership with Paisalo to Reach More Small Businesses in Tier 2, 3 and Rural India
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-06-25 at 5.07
Former Diplomat Ashok Sajjanhar
WhatsApp Image 2025-06-23 at 12.39
ADVERTISEMENT
ADVERTISEMENT