PM Modi lauds PSU banks for driving transformation in banking sector

In the thread, the government-run platform said, the state-run banks are writing the “comeback story in style.” It said the PSU banks’ net profit has jumped 4 times in the last 10 years, posting “remarkable growths”.

Prime Minister Narendra Modi on June 20 lauded the transformation in the country’s banking sector and the way public sector banks had led the change.

In a post on social media platform X, the PM shared a MyGovIndia thread and said: “Insightful data on how there has been a transformation in the banking sector and how PSU banks are powering it.”

The state-run lenders are writing the “comeback story in style”, the government handle posted in the thread, mentioning that the banks' net profit has jumped four times in the last 10 years, recording “remarkable growths”.

Insightful data on how there has been a transformation in the banking sector and how PSU banks are powering it. https://t.co/8pEgo6WZxh

— Narendra Modi (@narendramodi) June 19, 2024

According to the post, the State Bank of India’s net profit in FY24 stood at Rs 61,077 crore, compared to Rs 10,891 crore in FY14. Similarly, Bank of Baroda’s net profit came in at Rs 17,788 crore in the last financial year against Rs 4,541, crore in FY14.

In terms of stock performance, the Nifty PSU Bank index was miles ahead of its peers, recording a growth of 82.7 percent. The data provided by MyGovIndia was of June 13, however, it didn’t provide any time period.

On the much talked-about parameter of non-performing assets, MyGovIndia claimed that it has come down from Rs 2.27 lakh crore in March 2014 to Rs 1.02 lakh crore in FY23, “a massive win for financial health”.

The BJP-led government at the Centre has been attacked by the Opposition for privatising state-run companies. In December 2023, the government had informed the Parliament that lenders have written off NPAs of over Rs 10 lakh crore in the previous five financial years. However, banks have also recovered Rs 7.15 lakh crore of NPAs during the same period.

Additionally, Moneycontrol had reported last month that top ten state-run banks had written off Rs 92,012 crore in FY24 compared to Rs 1.05 lakh crore in the preceding fiscal.

With PTI inputs