Public Sector Banks (PSBs) have demonstrated remarkable financial performance during the first three quarters of FY 2024-25, achieving record profits and improved asset quality. As of December 31, 2024, PSBs collectively posted their highest-ever net profit of ₹1,29,426 crore, reflecting a 31.3% year-on-year (YoY) growth. The aggregate operating profit stood at ₹2,20,243 crore.
Improved asset quality was evident with the Net NPA ratio declining to just 0.59%, amounting to an aggregate net NPA outstanding of ₹61,252 crore. The total business of PSBs surged to ₹242.27 lakh crore, supported by an 11% YoY growth, with deposits growing at 9.8%. Credit growth remained strong at 12.4%, driven by a 16.6% rise in retail credit, 12.9% growth in agriculture credit, and 12.5% growth in MSME credit.
With an aggregate Capital to Risk Weighted Assets Ratio (CRAR) of 14.83%—well above the 11.5% regulatory requirement—PSBs are well-positioned to meet the credit demands of key sectors like agriculture, MSMEs, and infrastructure.
The strong financial performance is a result of ongoing policy and process reforms, focusing on credit discipline, stress asset resolution, responsible lending, governance improvements, financial inclusion, and technology adoption. These measures have strengthened PSBs, ensuring their continued role in driving economic growth.
