Scheduled Commercial Banks Achieve Record Net Profit of Rs 23.50 Lakh Crores in FY24, NPA Levels Decline
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New Delhi, Dec 15 (NationPress) The gross non-performing asset (NPA) ratio for scheduled commercial banks (SCBs) has seen a remarkable enhancement, falling to 2.67 percent in June 2024, down from 11.18 percent in March 2018, as reported by the government.
Additionally, SCBs achieved their highest-ever total net profit of Rs 23.50 lakh crore in FY2023-24, surpassing the net profit of Rs 22.63 lakh crore recorded in FY2022-23.
The asset quality for SCBs has significantly improved, with the gross NPA ratio decreasing to 2.67 percent (equating to Rs 4.75 lakh crore) in June 2024 from a peak of 11.18 percent (or Rs 10.36 lakh crore) in March 2018, as stated by the Ministry of Finance.
The Ministry also highlighted that the provision coverage ratio (PCR) has increased from 49.31 percent in March 2015 to an impressive 92.52 percent in June 2024, indicating greater resilience within the sector.
Moreover, the gross NPA ratio for public sector banks (PSBs) decreased to 3.32 percent in June 2024, down from 4.97 percent in March 2015 and a peak of 14.58 percent in March 2018.
In another positive development, SCBs reported their highest aggregate net profit of Rs 23.50 lakh crore in FY2023-24, compared to Rs 22.63 lakh crore in FY2022-23.
A recent stress test conducted by the Reserve Bank of India indicated that SCBs are well-capitalized, demonstrating their ability to withstand macroeconomic shocks even without additional capital input from stakeholders.
The findings showed that all banks could meet the minimum regulatory common equity tier 1 (CET1) ratio of 5.5 percent even under severe stress scenarios.
Meanwhile, the gross NPA ratio for PSBs dropped to 3.12 percent in September this year, compared to 4.97 percent in March 2015 and a peak of 14.58 percent in March 2018.
The Ministry of Finance reported that public sector banks achieved their highest total net profit of Rs 1.41 lakh crore during FY2023-24, an increase from Rs 1.05 lakh crore in FY2022-23, and recorded Rs 0.86 lakh crore in the first half of FY2024-25.
