🏦 #BankingBoom: Indian Banking Sector Surpasses ₹3 Lakh Crore Profit for the First Time!
Hey everyone! We have fantastic news from the banking sector! For the first time, the Indian banking industry has crossed the ₹3 lakh crore net profit mark in the financial year 2024. Compared to last year, the net profit of listed public and private sector banks has surged by 39%, reaching ₹3.1 lakh crore from ₹2.2 lakh crore in FY23.
Public sector banks have recorded a remarkable ₹1.4 lakh crore net profit in FY24, a 34% increase from the previous year. Private sector banks, on the other hand, saw their net profit rise by 42%, reaching nearly ₹1.7 lakh crore from ₹1.2 lakh crore last year. Both sectors have seen substantial income growth over the past year.
Prime Minister Narendra Modi responded to this milestone on the social media platform X. He highlighted that for the first time, the net profit of India's banking sector has surpassed ₹3 lakh crore. Modi also pointed out that the banking sector had struggled under the UPA government's phone-banking policies. "This is a significant milestone in the last 10 years. When we came to power, our banks were struggling with losses and high NPAs due to the UPA's phone-banking policies. This improvement in the banking sector helps improve loan availability for our poor, farmers, and MSMEs," said Modi.
To put things into perspective, the ₹3 lakh crore net profit is the total profit of all listed companies for the first three quarters of the financial year. In fact, banking profits have exceeded those of the IT services sector, which has been the most profitable group in recent years. Listed IT services companies have recorded a net profit of around ₹1.1 lakh crore for FY24. Over the past few years, public sector banks have cleaned up their balance sheets and increased their revenues, narrowing the profit gap with private banks. In fact, the net profit of public sector banks has quadrupled in the last three years.
Sources
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