Latest news with #PSBs
&w=3840&q=100)
Business Standard
17 hours ago
- Business
- Business Standard
Good show by banks as most register a rise in profit, but challenges ahead
Overall, public sector banks have put up a better show than private banks on most parameters premium Tamal Bandyopadhyay Listen to This Article As the first quarter of the current financial year comes to a close next week, let's look at how listed private and public sector banks (PSBs) have done in the last quarter of financial year 2024-25 (January-March 2025). Barring seven private and just one public sector bank, all have recorded a rise in operating profits. Overall, the operating profit of listed banks (excluding small finance banks) was Rs 1,55,704 crore in the March quarter, up 4.45 per cent from the year-ago quarter. While private banks' collective operating profit dropped 2.9 per cent, for PSBs, it rose 12.1 per cent. All
India Gazette
2 days ago
- Business
- India Gazette
PSU banks gain market share amid slow down in credit growth: UBI Report
New Delhi [India], June 21 (ANI): The credit growth of Indian banks moderated in the Financial Year 2025, yet Public Sector Banks (PSBs) gained the market share, outperforming their Private Banks (PVBs) counterparts, according to a report by the Union Bank of India. The report added that the gain was visible across both the nature and geography of lending. 'Credit growth slowed in FY25 yet PSBs gained market share vis-a-vis PVBs,' the report added. The Credit-Deposit (CD) ratio for PVBs was observed elevated, reflecting higher credit push, but their incremental CD ratio corrected sharply in FY25, hinting at a slowdown in fresh disbursements. Contrary to this, the PSBs saw more stability, leveraging their balance sheets more cautiously but effectively. As per the report, the working capital and demand loans, typically used by businesses for operational requirements, became a key driver of this outperformance. The report observed that a major change has emerged in the sectoral distribution of credit. The regulatory interventions on the unsecured lending slowed down retail (especially personal loan) disbursements from private banks. While the public sector banks used this opportunity to boost their incremental market share in the retail credit segment, especially gaining a lead in the housing loans. The report observed that the state-controlled banking entities are also leading in industrial credit, which was not the specialisation of PSBs. On the geographical front, PSBs dominated in rural and semi-urban regions. Public sector banks secured a large share of incremental credit in rural areas in FY25, re-establishing their presence as key lenders in India's hinterlands. Over 60 per cent of incremental credit in semi-urban locations was cornered by PSBs, while even in urban and metro areas, they managed to claw back some share lost in FY24. As per the findings of the report in terms of borrower segmentation, credit to individuals continued its upward trajectory in the current fiscal, which shows the strength of retail banking. (ANI)
Time of India
2 days ago
- Business
- Time of India
Report: Public Sector Banks increase market share amid slower credit growth in FY25; regain lending dominance
This is an AI-generated image, used for representational purposes only. Public Sector Banks (PSBs) gained significant market share across lending segments and geographies in FY25 despite overall moderation in bank credit growth, a report by Union Bank of India has revealed. The shift was especially evident in working capital and demand loans, traditionally used by businesses for operational needs, as per news agency ANI. ' Credit growth slowed in FY25 yet PSBs gained market share vis-à-vis PVBs (Private Banks),' the report noted, adding that public sector lenders leveraged their balance sheets more effectively and cautiously, especially as private lenders saw reduced momentum. The Credit-Deposit (CD) ratio of private banks, though elevated due to an earlier credit push, sharply corrected in FY25, indicating a deceleration in fresh disbursements. In contrast, PSBs capitalised on regulatory tightening in the unsecured lending space, particularly targeting retail credit like housing loans, where they emerged as incremental leaders. The report also pointed out a shift in the sectoral distribution of credit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Private banks, once dominant in retail disbursements, lost ground due to tighter regulations, allowing PSBs to step in. Remarkably, state-owned banks also posted stronger growth in industrial credit, a segment previously dominated by private lenders. On the geographic front, PSBs saw strong performance in rural and semi-urban areas. Over 60 per cent of incremental credit in semi-urban regions and a significant share in rural belts were secured by public banks. Even in urban and metro areas, where private banks traditionally dominated, PSBs reclaimed some ground lost in FY24. In terms of borrower segmentation, credit to individuals continued its upward trajectory, signalling robust retail banking strength, the report said. The report aligns with broader findings released earlier this month by Boston Consulting Group, which noted that the BFSI sector was undergoing a period of moderate credit growth and profitability pressure. The sector's Net Interest Margins are under pressure amid repo rate cuts and elevated CD ratios, which have intensified the race for low-cost deposits. Despite this, PSU banks posted a 26 per cent year-on-year growth in profit after tax (PAT), outperforming private banks' 8 per cent growth. Deposit growth remained healthy at 11 per cent year-on-year, reaching Rs 229.3 lakh crore, although CASA growth stayed muted. The overall banking sector reported a 12 per cent rise in total net advances and a 13 per cent increase in aggregate credit in FY25, signalling that PSBs' tactical shift and rural resurgence helped them outperform amid macroeconomic headwinds. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
2 days ago
- Business
- Mint
PSU banks gain market share amid slow down in credit growth: UBI Report
New Delhi [India], : The credit growth of Indian banks moderated in the Financial Year 2025, yet Public Sector Banks gained the market share, outperforming their Private Banks counterparts, according to a report by the Union Bank of India. The report added that the gain was visible across both the nature and geography of lending. "Credit growth slowed in FY25 yet PSBs gained market share vis-a-vis PVBs," the report added. The Credit-Deposit ratio for PVBs was observed elevated, reflecting higher credit push, but their incremental CD ratio corrected sharply in FY25, hinting at a slowdown in fresh disbursements. Contrary to this, the PSBs saw more stability, leveraging their balance sheets more cautiously but effectively. As per the report, the working capital and demand loans, typically used by businesses for operational requirements, became a key driver of this outperformance. The report observed that a major change has emerged in the sectoral distribution of credit. The regulatory interventions on the unsecured lending slowed down retail disbursements from private banks. While the public sector banks used this opportunity to boost their incremental market share in the retail credit segment, especially gaining a lead in the housing loans. The report observed that the state-controlled banking entities are also leading in industrial credit, which was not the specialisation of PSBs. On the geographical front, PSBs dominated in rural and semi-urban regions. Public sector banks secured a large share of incremental credit in rural areas in FY25, re-establishing their presence as key lenders in India's hinterlands. Over 60 per cent of incremental credit in semi-urban locations was cornered by PSBs, while even in urban and metro areas, they managed to claw back some share lost in FY24. As per the findings of the report in terms of borrower segmentation, credit to individuals continued its upward trajectory in the current fiscal, which shows the strength of retail banking. This article was generated from an automated news agency feed without modifications to text.
Hindustan Times
6 days ago
- Business
- Hindustan Times
CBI asks public sector banks to act timely on sanction requests in fraud cases
New Delhi: The Central Bureau of Investigation (CBI) on Tuesday asked the public sector banks (PSBs) and ministry of finance officers to act timely on its requests for sanction under Section 17A (for conducting investigation) and Section 19 (for filing charge sheets) under the Prevention of Corruption Act, which are key to completing probes and trial in bank frauds, people familiar with the development said. The matter was discussed with the officers of department of financial services (DFS) and chief vigilance officers (CVOs) of public sector banks (PSBs) in a meeting in Bengaluru, in which other ways to expedite investigations in bank frauds being investigated by it. The meeting assumes significance in the wake of a Delhi court recently discharging all the accused persons in a high-profile bank fraud case because several public sector banks refused to grant sanction against their 40 officers. The federal anti-corruption agency is investigating hundreds of bank fraud cases involving amounts totalling in a few lakh crores, according to an official, the meeting was important to discuss hurdles in prosecution sanction requests, delay in filing complaints, involvement of bank officers etc. 'During the day-long meeting, all pending matters pertaining to ongoing investigation and prosecution of the bank fraud cases being handled by CBI were discussed and several issues sorted out,' a CBI spokesperson said in a statement. This, the spokesperson said, was a follow up meeting after a high-level meeting was held on January 30 this year. The agenda was to enhance the interdepartmental cooperation and expedite investigations pertaining to bank fraud cases. On Tuesday, 'detailed presentations were made by CBI and PSBs on relevant operational issues. Many aspects were discussed and resolved', the spokesperson said. 'A close coordination between the banks and CBI in terms of timely sharing of relied-upon documents was acknowledged. Further efforts to streamline procedures and ensure proactive cooperation in matters related to obtaining approvals/sanctions under Section 17A and Section 19 of the Prevention of Corruption Act were also emphasised,' said the spokesperson. Apart from overall strategy to expedite bank fraud probes, CBI and PSBs also exchanged case-specific details and deliberated on the way forward to expedite pending investigations. 'The meeting concluded with a consensus to maintain the current momentum of cooperation between CBI and PSBs. Emphasis was laid on continuing structured engagement and institutional collaboration to overcome procedural bottlenecks, expedite investigations, resolve pending issues, and ensure timely completion of investigations,' the spokesperson said. Some of the important bank fraud cases being investigated by CBI are against - businessmen - Nirav Modi,Vijay Mallya, Mehul Choksi and Jatin Mehta, former ICICI Bank managing director Chanda Kochhar, Rishi Agrawal of ABG Shipyard Ltd, Kapil and Dheeraj Wadhawan of Dewan Housing and Finance Ltd (DHFL), Rana Kapoor (Yes Bank founder) and Sanjay Singal of Bhushan Power and Steel Ltd. Between 2018 and 2020 alone, CBI registered cases in bank frauds involving in excess of ₹1 lakh crore. In 2020, it filed over 200 cases, involving bank frauds of ₹70,000 crore, the highest ever in a year. In 2024, it registered 95 cases involving amounts worth over ₹8,000 crore.
