Profit of public sector banks increased in the June quarter, the reason for the fall in NPA

The profit of public sector banks has increased in the June quarter. An analysis has said that this may have a positive impact on the books of banks in the coming quarters.

Banks’ profits have increased in the June quarter.

The profits of public sector banks have increased in the June quarter due to the continuous decline in bad loans. An analysis has said that this may have a positive impact on the books of banks in the coming quarters. According to the analysis of quarterly financial data of public sector banks, Bank of Maharashtra (BOM) and State Bank of India (SBI) have the lowest total NPAs (non-performing assets) and net NPAs in the June quarter.

SBI and PNB profits fall

Overall, all the 12 public sector banks have reported a profit of around Rs 15,306 crore in the June quarter, registering an annual growth of 9.2 per cent. However, there has been a decrease in the profits of SBI and PNB during this period. During the April-June quarter of the last financial year, state-run banks had reported a total profit of Rs 14,013 crore.

According to the analysis, the total NPAs of BoM and SBI in the first quarter of the current financial year stood at 3.74 per cent and 3.91 per cent respectively against their total debt. The net NPAs of these banks have come down to 0.88 per cent and one per cent respectively at the end of June. The gross NPAs of other public sector banks ranged from 6.26 per cent to 14.90 per cent.

How much is NPA?

In the June quarter, the gross NPA of Bank of Baroda was 6.26 percent and that of Central Bank of India was 14.90 percent. Both these banks are still under the supervision of the Reserve Bank of India.

Net NPAs of most banks were less than three per cent of their total loans or advances. Only three banks – Union Bank of India (3.31 per cent), Central Bank of India (3.93 per cent) and Punjab National Bank (4.28 per cent) have net NPAs above three per cent.

Apart from this, let us tell you that the net profit of Indian Overseas Bank (IOB) has increased by 20 percent to Rs 392 crore in the first quarter of the current financial year. The profit of the bank has increased due to reduction in bad loans. The bank told the stock exchanges on Saturday that in the April-June quarter of a year ago, the bank had a net profit of Rs 327 crore. The total income of the bank has come down to Rs 5,028 crore in the first quarter of the financial year 2022-23 from Rs 5,607 crore in the same quarter last year.

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