In a historic milestone for India’s banking sector, the industry has achieved a net profit of Rs 3 lakh crore for the first time in the financial year 2023-24.
Prime Minister Narendra Modi has lauded this significant achievement. He highlighted the substantial improvements in the banking sector over the past decade.
Taking to X, PM Modi posted, “In a remarkable turnaround in the last 10 years, India’s banking sector net profit crosses Rs 3 lakh crore for the first time ever.”
Reflecting on the past challenges, PM Modi criticized the previous United Progressive Alliance (UPA) government’s phone banking policy, which he claims resulted in significant losses and a high volume of non-performing assets (NPAs).
“When we came to power, our banks were reeling with losses and high NPAs due to the phone-banking policy of UPA,” the PM stated.
PM asserted, “This improvement in the health of banks will help improve credit availability to our poor, farmers and MSMEs.”
In a remarkable turnaround in the last 10 years, India’s banking sector net profit crosses Rs 3 lakh crore for the first time ever.
When we came to power, our banks were reeling with losses and high NPAs due to the phone-banking policy of UPA. The doors of the banks were closed…
— Narendra Modi (@narendramodi) May 20, 2024
The financial data reveals an impressive 39% year-on-year (YoY) growth in profits for the banking sector.
Public sector banks reported a profit of Rs 1.4 lakh crore, marking a 32% YoY increase, while private sector banks achieved a profit of Rs 1.7 lakh crore, reflecting a 42% YoY increase.
The last decade has seen a significant turnaround for banks, characterized by stronger balance sheets and a notable reduction in NPAs.
This healthier financial position has been instrumental in driving higher profits and enhancing the ability of banks to extend credit to vital sectors of the economy.
PM Modi emphasized that this improvement will continue to support economic growth by making more credit available to underserved sectors, thereby fostering development and stability in the broader economy.
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