Union Bank of India came in second with an increase of 21.54 percent to Rs 7,52,469 crore. The largest lender in the nation, State Bank of India, took third place with an 18.15% increase in gross advances.
However, SBI’s total loans were almost 17 times higher at Rs 25,47,390 crore as compared to Rs 1,48,216 crore of BoM in absolute terms.
BoM had the highest increase of 22.31 percent in Retail-Agriculture-MSME (RAM) loans during the reviewed period, followed by Bank of Baroda with 19.53 percent and SBI with 16.51 percent.
BoM led the list for low-cost Current Account Savings Account (CASA) deposits with 56.27 percent, followed by Central Bank of India at 50.99 percent.
BoM and SBI with 3.55 per cent Net Interest Margin (NIM), a key profitability parameter, stood at the top among PSBs. Bank of India and Central Bank of India came in second and third, respectively, with 3.49 and 3.44 percent.
According to a review of the quarterly financial data released by public sector lenders, BoM and SBI were in the lowest percentile in terms of gross non-performing assets (NPAs) and net NPAs.
The analysis showed that the gross NPAs reported by BoM and SBI were 3.40 per cent and 3.52 per cent of their total advances, respectively, in the second quarter. Net NPAs of these banks came down to 0.68 per cent and 0.80 per cent, respectively, at the end of September 2022.
At the conclusion of the second quarter of 2022–23, BoM had the highest Capital Adequacy Ratio among PSBs at 16.71 percent, followed by Canara Bank at 16.51 percent and Indian Bank at 16.15 percent.
Finance Minister Nirmala Sitharaman last week revealed that the government’s efforts to reduce bad loans have yielded results with all the 12 PSBs reporting 50 per cent jump in combined net profit at Rs 25,685 crore in the second quarter.
The total net profit of all PSBs increased by 32% to Rs 40,991 crore in the first half of FY23.
Inputs from PTI