All the 12 public sector banks (PSBs) earned a cumulative profit of about Rs 15,306 crore, registering a 9.2 per cent growth annually, despite poor showing by large lenders, like State Bank of India (SBI) and Punjab National Bank (PNB). 

During the April-June period of the previous fiscal, State-owned banks recorded a total profit of Rs 14,013 crore, according to quarterly numbers published by public sector lenders. 

Of the total 12, three lenders – SBI, PNB and Bank of India (BoI) –reported a fall in their profits ranging from 7 to 70 per cent. 

Decline in profit by these lenders has been attributed to mark-to-,arket (MTM) losses due to hardening of bond yields. 

MTM losses occur when the financial assets held are valued by the market at a price lower than the purchase price. 

Nine lenders recorded profit ranging from 3 to 117 per cent during the first quarter of FY23. The highest percentage growth was recorded by Pune-based Bank of Maharashtra, which earned a profit of Rs 452 crore against Rs 208 crore in the same quarter of the previous year. 

It was followed by Bank of Baroda, which recorded a 79 per cent bottom line growth at Rs 2,168 crore compared to Rs 1,209 crore a year ago. 

Despite having witnessed a fall in its profit, SBI remained the highest contributor to the combined profit of banks with Rs 6,068 crore. SBI alone contributed about 40 per cent of the total profit. It was followed by Bank of Baroda with Rs 2,168 crore. 

During 2021-22, the collective profit of PSBs more than doubled to Rs 66,539 crore as against Rs 31,816 crore in the preceding year.