Mumbai – : In a remarkable achievement, the combined profit of all 12 public sector banks in India has reached a historic level of Rs 1,05,298 crore during the fiscal year 2022-23. This significant surge in profitability highlights the strong performance and resilience of the banking sector. Notably, the State Bank of India (SBI) alone contributes approximately half of this impressive figure, setting a new record in terms of bank profits.

March Quarter Profits Surge for Public Sector Banks

Adding to the exceptional financial results, all 12 public sector banks collectively earned a profit of Rs 34,643 crore in the March quarter. What makes this achievement even more remarkable is that none of these banks reported any losses. Furthermore, these banks have also witnessed a decline in their bad loans, commonly referred to as Non-Performing Assets (NPAs).

Factors Driving Record Profits

Several factors have contributed to the record-breaking profit figures of public sector banks. Firstly, these banks have undertaken rigorous efforts to clean up their balance sheets. As a result, they have written off loans amounting to lakhs of crores, effectively removing them from their financial records. Over the past six years, loans worth a staggering 9 lakh crores have been written off, strengthening the banks’ financial position.

Additionally, the demand for loans surged after the challenging period marked by the COVID-19 pandemic. Public sector banks responded to this increased demand by aggressively disbursing loans. Notably, there has been a significant upswing in retail loans, further fueling the banks’ profitability.

Reduction in Non-Performing Assets

The data indicates a substantial decline in the NPAs of public sector banks. During the fiscal year 2022-23, their net NPAs averaged at an impressive 1.43 percent. Specific banks have witnessed noteworthy reductions in their NPAs as well. For instance, Punjab National Bank (PNB) recorded a decrease in NPAs to 2.72 percent, Central Bank of India to 1.77 percent, and Union Bank to 1.70 percent.

Business Exceeding Rs 10 Lakh Crore for Seven Banks

Among the 12 public sector banks, seven have achieved a significant milestone by surpassing the Rs 10 lakh crore mark in business. SBI takes the lead with an impressive business volume of 77 lakh crores, followed by Bank of Baroda with 21.73 lakh crore, PNB with 21 lakh crore, Canara Bank with 20.41 lakh crore, Union Bank with 19.27 lakh crore, Bank of India with 18.53 lakh crore, and Indian Bank with 15.99 lakh crore.

Impressive Profits and Dividends for PNB

Punjab National Bank (PNB) witnessed a remarkable increase in net profit, which grew more than five times to reach Rs 1,159 crore in the March quarter. This surge can be attributed to a decline in bad loans and an increase in interest income. The bank’s earnings from interest also experienced a substantial rise, reaching Rs 23,849 crore. Notably, the bank successfully reduced its NPA ratio from 4.8 percent to 2.72 percent during this period.

However, it is important to note that PNB’s overall profit for the fiscal year 2022-23 has decreased by 27 percent compared to the previous year. Despite this decline, the board of directors has recommended a dividend of Rs 0.65, equivalent to 32.5 percent, on a share of face value Rs 2 for the fiscal year 2022-23.


The exceptional financial performance of all 12 public sector banks, with their record-breaking profits and significant reductions in NPAs, is a testament to their resilience, strategic initiatives, and commitment to serving the nation’s financial needs. As the banking sector continues to strengthen, it will play a crucial role in supporting India’s economic growth and development.


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