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Public Sector Banks Surpass Rs 1.4 Lakh Crore in Total Profit

24 May 20246 mins read by Angel One
Here we discuss the significant profit growth of public sector banks in India for the fiscal year ending March 2024, highlighting key metrics and government reforms.
Public Sector Banks Surpass Rs 1.4 Lakh Crore in Total Profit
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The domestic equity benchmarks experienced a sideways trend , with the Nifty index hovering just above the 22,500 level. PSU bank shares saw buying demand for the third consecutive trading session. The S&P BSE Sensex closed almost flat, declining by 52.63 points or -0.07% to 73,953.31, while the Nifty 50 index added 27.5 points or 0.12% to reach 22,5294.05. The Nifty PSU bank index gained 1.51% to 7,264.75, marking a 2.35% rally over three consecutive sessions.

Milestone in Banking System Profitability

The Indian banking system has reached a remarkable milestone with the net profit of public sector banks (PSBs) exceeding Rs 1.4 lakh crore for the fiscal year ending March 2024. This achievement, a 34.93% increase from the previous fiscal year, underscores the effectiveness of strategic measures implemented by the government and signals a promising outlook for the banking industry.

Sr. No Bank Name Net Profit FY24
(Rs crore)
Net Profit FY23
(Rs crore)
1 State Bank of India 61,077 50,232
2 Bank of Baroda 17,789 14,110
3 Canara Bank 14,554 10,604
4 Union Bank of India 13,648 8,433
5 Punjab National Bank 8,245 2,507
6 Indian Bank 8,063 5,282
7 Bank of India 6,318 4,023
8 Bank of Maharashtra 4,055 2,602
9 Indian Overseas Bank 2,656 2,099
10 Central Bank of India 2,549 1,582
11 UCO Bank 1,654 1,862
12 Punjab & Sind Bank 595 1,313
Total 1,41,203 1,04,649

State Bank of India’s Dominant Contribution

State Bank of India (SBI) emerged as the largest contributor, accounting for more than 40% of the total earnings. SBI’s profit surged to Rs 61,077 crore, reflecting a 22% increase compared to the previous fiscal year. This significant contribution underscores SBI’s pivotal role in the overall profitability of PSBs.

Profit Growth Across Major Banks

Several public sector banks reported substantial growth in net profit. Punjab National Bank (PNB) recorded the highest percentage increase at 228%, reaching Rs 8,245 crore. Union Bank of India and Central Bank of India also showed significant profit rises of 62% and 61%, respectively. Bank of India saw a 57% growth, while Bank of Maharashtra and Indian Bank posted increases of 56% and 53%, respectively. These impressive figures reflect the broad-based recovery and profitability within the sector.

Challenges for Punjab & Sind Bank and UCO Bank

However, not all PSBs experienced growth. UCO Bank saw an 11% decline in net profit, falling to Rs 1,654 crore. Punjab & Sind Bank faced the most significant challenge, with a 55% drop in profit to Rs 595 crore, indicating underlying issues that require attention.

Government Reforms Driving Growth

The turnaround in the public sector banking industry can be attributed to a series of strategic initiatives and reforms by the government, including the comprehensive 4R strategy: recognising NPAs transparently, resolving and recovering bad loans, recapitalising PSBs, and implementing reforms in the financial ecosystem.

From 2016-17 to 2020-21, the government infused an unprecedented Rs 3,10,997 crore to recapitalise PSBs, providing crucial support and preventing potential defaults.

Over the past nine years, reforms have focused on enhancing credit discipline, fostering responsible lending practices, embracing technology, facilitating bank mergers, and bolstering bank confidence. These measures have played a crucial role in transforming the sector from record losses in FY18 to record profits in FY24.

Market Sentiment and Future Outlook

The recent performance of the equity benchmarks and the buying demand for PSU bank shares reflect growing investor confidence in the sector. The significant profit growth among public sector banks underscores the effectiveness of the government’s reforms and strategic initiatives. The continued focus on enhancing credit discipline, responsible lending, and technological adoption is expected to sustain this positive momentum.


The fiscal year ending March 2024 has been a landmark period for public sector banks in India, with net profits surpassing Rs 1.4 lakh crore. This remarkable achievement, driven by government reforms and strategic initiatives, signals a promising future for the banking sector. With major banks like SBI leading the charge and substantial profit growth across several institutions, the sector is well-positioned for continued success. However, challenges remain, as evidenced by the decline in profit for Punjab & Sind Bank, highlighting the need for ongoing vigilance and targeted interventions. Overall, the public sector banking industry’s turnaround from significant losses to record profits marks a significant milestone in India’s financial landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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