PSU banks' profits have increased – Union Finance Minister Sitharaman

New Delhi: The measures taken by the central government to reduce the bad loans of public sector banks are beginning to show their impact. This has reduced the amount of bad loans. Due to this, the net profit of 12 public sector banks increased by 50 per cent to Rs 25,685 crore in the second quarter of the financial year, informed Union Finance Minister Nirmala Sitharaman. Finance Minister Sitharaman has expressed satisfaction saying that the financial health of all public sector banks is improving.

A large amount of loans disbursed by public sector banks has yet to be repaid. Concerns were being expressed that these bad loans would be dangerous for banks and adversely affect the economy. Against this backdrop, the central government started preparations to recover these bad loans by setting up a bad bank. It also undertook other economic reforms. Along with this, the central government had taken a strategic decision to provide large capital support to the banks. Besides, the Reserve Bank had also taken some measures to improve the condition of the banks.

The results of this have been seen and the bad loans of the public sector banks have decreased and the profits have increased. Finance Minister Sitharaman welcomed this positive change by informing about it on social media. The total profit of 12 public sector banks has gone up to Rs 40,991 crore in the quarter that ended September 30. Thus, the net profit has increased to Rs 25 thousand, 685 crores. The country’s largest bank State Bank of India’s net profit increased by 74 per cent to Rs 13,265 crore. Canara Bank’s profit has increased by 89 per cent.

This improved condition of banks will greatly benefit the country’s economy. This will boost the industrial sector by providing new loans to the industries. At the same time, more loans will be distributed to the common people, the demand will increase, and the country’s economy will benefit greatly. Therefore, this information given by Union Finance Minister Sitharaman that the condition of banks is improving becomes very important.