The cumulative profit of the 12 public sector banks was about 15,306 crore, a 9.2 per cent growth year, despite poor showings by large banks like SBI and PNB.
State-owned banks had a total profit of 14,013 crore during the April-June period of the previous fiscal year, according to quarterly numbers released by public sector lenders.
Three lenders -- State Bank of India SBI Punjab National Bank PNB and Bank of India -- reported a drop in their profits, ranging from 7 -- 70 per cent.
Mark-to-Market MTM losses have been blamed for the decline in profit by these lenders due to hardening bond yields.
MTM losses occur when the financial assets held by the market are valued at a lower price than the purchase price.
During the first quarter of FY 23 nine lenders have recorded profits ranging from 3 -- 117 per cent. The Bank of Maharashtra, which earned a profit of Rs 452 crore against Rs 208 crore in the same quarter of the previous year, had the highest percentage growth.
It was followed by Bank of Baroda, which had a 79 per cent bottom line growth at Rs 2,168 crore compared to Rs 1,209 crore a year ago.
SBI remained the highest contributor to the combined profit of banks with 6,068 crore despite having seen a fall in its profit. SBI alone contributed about 40 per cent of the total profit. It was followed by Bank of Baroda with Rs 2,168 crore.
The collective profit of the public sector banks increased to 66,539 crore during the period 2021 -- 22 compared to Rs 31,816 crore in the previous year. In FY21, only two public sector banks, Central Bank and Punjab Sind Bank reported losses, which dragged down the collective net profit.
In the last financial year, many state-owned banks also declared dividends after a hiatus. In all, nine banks including SBI have declared dividends of 7,867 crore to shareholders.
Collective losses were recorded in the five years from 2015 -- 16 to 2019 -- 20.
The highest net loss in 2017 was recorded in 2017 -- 18 at Rs 85,370 crore, followed by Rs 66,636 crore in 2018 -- 19; Rs 25,941 crore in 2019 -- 20; Rs 17,993 crore in 2015 -- 16 and Rs 11,389 crore in 2016 -- 17.