MADURAI: The various reforms initiated by Government of India in the banking sector has yielded good results in the performance of banks’ ecosystem from business to employee welfare to growth sustained by stability among the public sector banks in India.
As per data released to the media today- on December 12th 2024, the public sector banks had recorded highest ever aggregate net profit of Rs.1.41 lakh crores during 2023-24 as against net profit of Rs.1.05 lakh crores in financial year 2022-23, and already the PSBs recorded Rs.0.86 lakh crores in the first half of the current fiscal year 2024-25. During the last three years, public sector banks in India have paid a total dividend of Rs.61,964 crores.
The Gross NPAs ratio of Public Sector Banks declined to 3.12 per cent in September 2024 from 4.97 per cent in March 2015 from the peak of 14.58 per cent in March 2018 and hence there is a good improvement in asset quality. Capital adequacy ratio of PSBs improved by 393 bps to reach 15.43 per cent in September 2024 from 11.45 per cent in March 2015, according to the data report released by the Government of India today.
“Since 2015, the Government of India implemented a comprehensive 4R’s strategy of recognising NPAs transparently, resolution and recovery, recapitalising PSBs and reforms in the financial system to address the challenges faced by public sector banks. And as a result of the Government’s overarching policy reforms, the financial health and robustness of PSBs has improved significantly,” the press note released today has said.
It was also informed that the gross advances of scheduled commercial banks stood at Rs.175 lakh crores in March 2024 while this figure was Rs.61 lakh crores in the year 2014. “The number of bank branches have gone up from 1,17,990 in March 2014 to 1,60,501 in September 2024. Out of these total branches, 1,00,686 branches of banks are in rural and semi-urban areas,” the press note said.
In the banking sector, several steps were taken for HR policies and welfare measures of bank staff, and special care was taken for the welfare of women employees working in public sector banks. The Government report on PSBs also highlighted about staff welfare fund, pension option to bank resignees, new pay scales for all cadres etc.
