Public sector banks (PSBs) have doubled their net profit during financial year 2021-22. The collective profit of 12 state-owned banks during 2021-22 worked out to Rs 66,539 crore, an increase of 110% over Rs 31,816 crore in FY21.

• Profitability has increased as a result of the conclusion of the bad loan clean-up and economies of scale gained through the merger of ten state-owned banks.
• Other factors include the Reserve Bank of India’s (RBI) cheap liquidity and growth categories such as retail lending.
• Only two PSBs (Central Bank and Punjab & Sind Bank) declared losses in FY21, dragging down the overall net profit.

By: Brijesh Kumar