PSBs' Total Market Cap Rises From Rs 4.52 Lakh Cr In Mar'18 To Rs 10.63 Lakh Cr In Dec'22

The total market cap of public sector banks (PSBs) has increased from Rs 4.52 lakh crore in March 2018 to Rs 10.63 lakh crore in December 2022, said the union minister of state for finance Bhagwat Kisanrao Karad.

In a written reply to a question in Lok Sabha, he said the gross non-performing asset (NPA) ratio of PSBs rose from 5.0 per cent in March 2015 to 14.6 per cent in March 2018. 

He added that asset quality has improved significantly with the gross NPA ratio of PSBs declining from the peak of 14.6 per cent in March 2018 to 5.53 per cent in December 2022.

"The proportion of standard restructured advances reduced progressively from 7.0 per cent to 0.8 per cent during the same period," he added.

The minister stated that the Centre implemented a comprehensive 4R’s strategy of recognising NPAs transparently, resolution and recovery, recapitalising PSBs and Reforms in the financial ecosystem. 

"Resilience has increased with the provision coverage ratio of PSBs rising from 46.0 per cent to 89.9 per cent in December 2022," MoS Karad explained.

Interestingly, the State Bank of India’s (SBI's) economic research department in a report said that Indian banks are the epitome of resilience. It mentioned that foreign claims on India are USD 104.2 billion on an immediate counterparty basis, and USD 81.5 billion on a guarantor basis. 

When compared with other major countries, India has the least foreign claims, both as a counterparty basis and also as a guarantor basis, the report stated.

The minister also said that all PSBs are in profit with aggregate profit being Rs 66,543 crore in the financial year (FY) 2021-22 and profit continued with PSBs earning an aggregate profit of Rs 70,167 crore in the first nine months of FY 2022-23.

According to Karad, the capital adequacy ratio of PSBs has improved significantly from 11.5 per cent in March 2015 to 14.5 per cent in December 2022.