Public Sector Banks: A Profitable Surge Fueled by SBI

Public sector banks in India have witnessed a significant profit upswing in the third quarter of the current fiscal, led by the State Bank of India (SBI), the country's largest lender. The cumulative profit reached a record Rs 52,603 crore, reflecting an 18% year-on-year growth.

SBI played a pivotal role, contributing 40% of the total earnings. Among the notable performers were Indian Overseas Bank, with a net profit growth of 56%, and Central Bank of India, which saw a 32% rise in profit. Most banks experienced single-digit profit growth, except for a few like Bank of Maharashtra and Canara Bank, which reported over 20% increases.

Financial Services Secretary, M Nagaraju, expressed optimism about the banking sector's resilience and growth. He highlighted the 12% credit growth and 10% deposit growth, attributing the banks' performance to prudent management and robust regulatory oversight by the RBI, ensuring limited impact from external challenges.