The share of public sector banks in the overall profit of the banking sector has also been strong. This can be gauged from the fact that during this period only 2 out of 12 public sector banks in the country have been in loss.
Due to Corona, from the general public to the government, there was trouble. At the same time, the pace of the economy also slowed down. The country’s GDP came down to the first -7.3 in 40. But during this the banking sector of the country remained silver. From public sector banks to private banks made huge profits. In the financial year 2021, the banking sector has registered a record profit of Rs 1,02,252 crore. Whereas before that i.e. in the financial year 2019, the Bharti banking industry had to face a loss of about 5000 crores.
Talking about the profit, the profit of the country’s largest private bank HDFC Bank stood at Rs 31,116 crore, which accounts for 30 percent of the entire banking sector. So the country’s largest government bank SBI has also earned a lot during this period.
Why did the earnings of banks increase?
During the Corona period, the share of the country’s largest bank, State Bank of India, stood at Rs 20,410 crore, which is 20 percent of the total profit. So on the other hand, ICICI’s profit has been Rs 16,192 crore. Which is more than double compared to the previous financial year. In fact, the biggest reason for the profits of banks was the slow pace of lending of public sector banks and private banks got the benefit of this. Private banks accelerated the lending speed as compared to government banks. Especially during the Corona period, private banks were more active than government banks in the matter of lending.
Damage to only two backs out of 12
The share of public sector banks in the overall profit of the banking sector has also been strong. This can be gauged from the fact that during this period only 2 out of 12 public sector banks in the country have been in loss. The special thing is that these government banks came in the first Collective Net Profit in 5 years. If we compare the losses of the banks which have suffered losses with the last year, then it has been less.
Bad loan also became a big reason
A major reason for the profits of banks has also been that many big banks came out of the problem of bad loans during this period. On the other hand, if we talk about the March quarter results, the performance of the 3 largest banks of the country has been excellent. The country’s largest public sector bank SBI has achieved a profit of 80 percent. At the same time, the growth of two big private banks of the country has also been spectacular. Apart from this, the government is also continuously working on strengthening the position of banks through mergers and mergers.
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