Medilytix bureau: Despite poor performances by large lenders such as SBI and PNB, all 12 public sector banks earned a total profit of about 15,306 crore, representing a 9.2% annual growth.According to quarterly numbers published by public sector lenders, during the April-June period of the previous fiscal, state-owned banks recorded a total profit of 14,013 crore.
Of the total 12, three lenders—State Bank of India, Punjab National Bank, and Bank of India—reported falls in profits ranging from 7–75%.
A decline in profit by these lenders has been attributed to mark-to-market (MTM) losses due to hardening 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 3-117% during the first quarter of FY23. The highest percentage growth was recorded by the Bank of Maharashtra, which earned a profit of 452 crore against 208 crore in the year-ago period. It was followed by Bank of Baroda, which increased its bottom line by 79% to 2,168 crore from 1,209 crore the previous year.