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Public sector banks register 9% rise in profit to Rs 15,306 crore in April-June quarter

Public sector banks register 9% rise in profit to Rs 15,306 crore in April-June quarter

Of the total 12, three lenders -State Bank of India, Punjab National Bank and Bank of India- reported fall in profits ranging from 7-70%.

Of the total 12, three lenders -State Bank of India, Punjab National Bank and Bank of India- reported fall in profits ranging from 7-70%. Of the total 12, three lenders -State Bank of India, Punjab National Bank and Bank of India- reported fall in profits ranging from 7-70%.

All the 12 public sector banks earned a cumulative profit of about ₹15,306 crore, registering a 9.2% growth annually, despite poor showing by large lenders like SBI and PNB. During the April-June period of the previous fiscal, state-owned banks recorded a total profit of ₹14,013 crore, according to quarterly numbers published by public sector lenders.

Of the total 12, three lenders -State Bank of India, Punjab National Bank and Bank of India- reported fall in profits ranging from 7-70%.

Decline in profit by these lenders has been attributed to Mark-to-Market (MTM) losses due to hardening bond yields.

MTM losses occur when the financial assets held are valued by the market at a price lower than the purchase price.

Nine lenders have recorded profit ranging from 3-117% during the first quarter of FY23. The highest percentage growth was recorded by Bank of Maharashtra which earned a profit of ₹452 crore against ₹208 crore in the year-ago period. It was followed by Bank of Baroda which recorded a 79% bottom line growth at ₹2,168 crore compared to ₹1,209 crore a year ago.