India's banking sector net crosses Rs 3 lakh crore for the first time; PM Modi reacts
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New Delhi, May 20: India's banking sector achieved a milestone as its net profit surpassed Rs 3 lakh crore for the first time in FY24. The combined net profit of listed public and private sector banks surged by 39 per cent, reaching Rs 3.1 lakh crore compared to Rs 2.2 lakh crore in FY23.
Prime Minister Narendra Modi termed it a “remarkable turnaround in the last 10 years”. The PM said that the improvement in the health of the banks will improve the availability of credit to the poor.
"In a remarkable turnaround in the last 10 years, India's banking sector net profit crosses Rs 3 lakh crore for the first time ever. When we came to power, our banks were reeling with losses and high NPAs due to the phone-banking policy of UPA. The doors of the banks were closed for the poor. This improvement in the health of banks will help improve credit availability to our poor, farmers and MSMEs," he said in a tweet.
On a year-on-year basis, private banks’ profit jumped by 41 percent while public sector banks’ net profit rose 35 percent, data showed.
In absolute terms, financial year (FY) 2024 saw India’s private sector banks reporting a bigger net profit than PSBs. In FY24, a total of 26 private sector banks reported a net profit of Rs 1.78 lakh crore versus the 12 PSBs’ net profit of Rs 1.41 lakh crore.