Despite the pandemic, banks see a record profit of 1 lakh Rupees

MUMBAI: In FY21, the banking sector made it’s highest-ever earnings of 1,02,252 crore, despite the economy being hit by the pandemic. This is a considerable improvement above the industry’s net loss of about 5,000 crore in FY19. Half of the profits in the business came from two banks: HDFC Bank and SBI. HDFC Bank accounted for 30% of overall earnings, or Rs 31,116 crore, a rise of 18% over the previous year. SBI, the country’s largest lender, contributed another 20%, or Rs 20,410 crore. ICICI Bank came in third, with earnings of 16,192 crore, more than double those of the previous year. Additionally, private banks benefited. The most dramatic change occurred among PSBs, which posted a net profit for the first time in five years. Only two of the 12 public sector banks, Punjab & Sind Bank and Central Bank of India, posted a net loss for the fiscal year.

Yes Bank remained in the red in the private sector, with a net loss of 3,462 crore as it continued to make provisions. Banks that were in the red, on the other hand, suffered smaller losses. The elimination of PSBs’ historical bad loan problem was the single biggest factor for their 57,832-crore turnaround – from a deficit of 26,015 crore in FY20 to a combined profit of 31,817 crore in FY21.

Banks had finished making arrangements for the majority of these loans by March 2020. Banks stopped bleeding as additional provisions were offset by huge recoveries from previously written-off accounts. According to ICRA, the profits for the current year came from windfall gains on public banks’ bond portfolios, which accounted for two-thirds of their profits before tax in FY21.

Latest articles

Debt Recovery Ecosystem in India, Impact of Phygital Debt Collection, and the Way Forward: Mobicule Technologies’ Siddharth Agarwal

In the past few years, India has observed a massive transformation across industries owing to digitisation, new communication channels, and stringent regulatory...

HMD Global Launches Nokia C32: Fashionable Design, Powerful Imaging, and Android 13!

HMD Global, the leading manufacturer of Nokia phones, has announced the launch of the Nokia C32, the latest addition to the popular...

Indian govt likely to reopen semiconductor application worth $10 billion to attract global chip companies

A day after India's IT Minister Ashwini Vaishnaw interacted with the leadership team of  Semiconductor Equipment and Materials International (SEMI), which is the...

Gautam Adani Climbs to Top 20 on Billionaires List with a Net Worth of $64.2 Billion

Indian business tycoon Gautam Adani, chairman of the Adani Group, has achieved a significant milestone by reentering the top 20 on the...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here