Indian SCBs clock highest-ever net profit at Rs 23.50 lakh cr in FY24, reduce NPAs

NEW DELHI: The gross non-performing asset (NPA) ratio for scheduled commercial banks (SCBs) have improved significantly with a reduction to 2.67 per cent in June 2024 from 11.18 per cent in March 2018, according to the government.

Moreover, SCBs recorded highest-ever aggregate net profit of Rs 23.50 lakh crore in FY2023-24, against net profit of Rs 22.63 lakh crore in FY2022-23.

The asset quality of SCBs has improved significantly with gross NPA ratio of SCBs declining to 2.67 per cent (Rs 4.75 lakh crore) in June-2024 from a peak of 11.18 per cent (Rs 10.36 lakh crore) in March-2018, informed the Ministry of Finance.

“Provision coverage ratio (PCR) increasing from 49.31 per cent in March-2015 to a healthy 92.52 per cent in June-24 shows increased resilience,” the ministry added.

Gross NPA ratio of PSBs declined to 3.32 per cent in June-24 from 4.97 per cent in March-2015 and from a peak of 14.58 per cent March-2018.

Also, SCBs recorded highest ever aggregate net profit of 23.50 lakh crore in FY2023-24 against net profit of 22.63 lakh crore in FY2022-23.

A recent stress test result of the Reserve Bank of India revealed that SCBs are well-capitalised and capable of absorbing macroeconomic shocks even in the absence of any further capital infusion by stakeholders.

All banks would be able to meet the minimum regulatory common equity tier 1 (CET1) ratio of 5.5 per cent even under severe stress scenario, it showed.

Meanwhile, the gross NPA ratio of public sector banks (PSBs) declined to 3.12 per cent in September this year, from 4.97 per cent in March 2015 and from a peak of 14.58 per cent in March 2018.

The Ministry of Finance said in a statement that public sector banks (PSUs) recorded the highest ever aggregate net profit of Rs 1.41 lakh crore during FY2023-24, against net profit of Rs 1.05 lakh crore in FY2022-23, and recorded Rs 0.86 lakh crore in the first half of FY2024-25.