Indian Banks on the Rise

India's banking sector is witnessing a remarkable turnaround, with loan growth and profitability on an upward trajectory, according to a recent S&P Global Market Intelligence report.

Profitability and Loan Growth

All six of India’s largest public and private sector banks have reported full-year net income growth, thanks to stable net interest margins and reduced provisioning. State Bank of India (SBI) and HDFC Bank lead the pack with significant profit increases.

Future Projections

Despite a slight dip expected in public sector banks' net profits, the overall outlook remains positive. Loan growth is anticipated to exceed 12% in FY2025-26, and 13% in FY2026-27, signaling robust health in the banking sector.

Public Sector Banks' Historic Performance

India’s Public Sector Banks (PSBs) have achieved their highest-ever net profit in FY2023-24, with the Gross Non-Performing Assets (GNPA) ratio falling to 3.12% as of September 2024. This marks a significant improvement in asset quality and operational efficiency.