Winning Bizness Desk
Mumbai. In order to improve the financial condition of public sector banks, the government has been infusing capital into the banks by making a provision of a certain amount in the budget. But in this year's budget, which will be presented on February 1, 2023, its possibility is negligible. The reason for this is the huge profits earned by public sector banks. The reason for this is that the financial condition of public sector banks is better than before. Not only this, the capital adequacy ratio that has been decided by the regulator to be kept by public sector banks, at present it is more than that and has reached between 14 percent to 20 percent.
SBI made maximum profit of 13,265 crores
Notably, 12 public sector banks of the country had earned a total profit of Rs 15,306 crore in the first quarter of the current financial year. It increased to Rs 25,685 crore in the second quarter. If compared to a year ago, the profit of these banks has increased by 9 percent in the first quarter and 50 percent in the second quarter. The country's largest bank State Bank of India (SBI) has earned the highest ever profit of Rs 13,265 crore in the second quarter. Compared to the same quarter a year ago, this growth has been 74 percent.
Govt's efforts paid the price-FM
During the current financial year, the total profit of public sector banks increased by 32 percent to Rs 40,991 crore in the period from April to September. Earlier in the financial year 2021-22, despite the challenges of the epidemic, the total profit of these banks had doubled to Rs 66,539 crore. Many banks had also announced dividends to their customers in the last financial year. A total of 9 public sector banks had distributed Rs 7,867 crore as dividend to the shareholders. Finance Minister Nirmala Sitharaman had recently said that the efforts made by the government to remove the problem of bad loans have started increasing their profits.
Banks raising funds from the market
Sources say that banks are now raising funds from the market to increase their resources. Apart from this, they are also selling their non-core assets. The government had earlier infused capital in public sector banks in the financial year 2021-22. The government had decided to infuse capital of Rs 20,000 crore into the banks. In the last five financial years i.e. from 2016-17 to 2020-21, a capital of Rs 3,10,997 crore has been infused in public sector banks. Of this, Rs 34,997 crore was arranged through budget allocation while Rs 2.76 lakh crore was raised by issuing recapitalization bonds to these banks.