Banks make record profits of Rs 1 lakh crore during the pandemic

MUMBAI: The banking sector posted its highest profit of 1.02.252 billion rupees in fiscal year 21, a year the economy was hit by the pandemic. This is a significant change compared to a net loss of nearly Rs.5 billion for the industry in its 19th fiscal year.

Two banks, HDFC Bank and SBI, contributed half of the industry’s profits. Of the total revenues, 30% came from HDFC Bank at Rs 31,116 crore, an increase of 18% over the previous year. The country’s largest lender, SBI, accounted for another 20% for Rs 20.410 billion. The third highest was ICICI Bank, which earned Rs 16,192 crore, more than double the previous year. Private banks also gained market share as public banks (PSBs) slowed lending.

The biggest change was with the PSBs, which were jointly net profit for the first time in five years. Only two of the twelve banks in the PSU Punjab & Sind Bank and the Central Bank of India reported an annual deficit. The bank was in the red with a net loss of Rs 3,462 billion as it continued to set up provisions. For banks in the red, however, the losses were lower than in the previous year.

The main reason PSBs saw a change of Rs 57,832 crore from a loss of Rs 26,015 crore in FY 20 to a combined gain of Rs 31,817 crore was to end their inherited bad debt problem. 12 large delinquent accounts followed by another 40 accounts such as B. Delinquent assets and bankruptcy proceedings. Given the size of these commitments, the move resulted in Rs 4 million worth of loans going bad. By March 2020, the banks had completed the provisions for most of these loans. The additional provisions were offset by large recoveries from previously canceled accounts and the banks stopped bleeding. According to the rating agency ICRA, the profits for the current year were windfall profits on bonds. public bank account balances that contributed two-thirds of your pre-tax profit in fiscal year 21.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close