India's Banking Sector Achieves Record Net Profit of Rs 3 Lakh Crore for First Time; PM Modi Says 'This Will Help Poor, Farmers and MSMEs'

India's banking sector has achieved a record net profit of Rs 3 lakh crore for the first time ever in the financial year 2024. The net profit of listed public and private sector banks rose 39% to Rs 3.1 lakh crore from Rs 2.2 lakh crore in FY23. Prime Minister Narendra Modi on Monday said this will help improve credit availability to our "poor, farmers and MSMEs."

"In a remarkable turnaround in the last 10 years, India's banking sector net profit crosses Rs 3 lakh crore for the first time ever," said PM Modi. 

In a remarkable turnaround in the last 10 years, India's banking sector net profit crosses Rs 3 lakh crore for the first time ever.

When we came to power, our banks were reeling with losses and high NPAs due to the phone-banking policy of UPA. The doors of the banks were closed…

— Narendra Modi (@narendramodi) May 20, 2024

PM Modi credited the success to the policy reforms implemented by his administration. He said that the improved health of the banking sector would significantly enhance credit availability for the poor, farmers and Micro, Small and Medium Enterprises (MSMEs).

"When we came to power, our banks were reeling with losses and high NPAs due to the phone-banking policy of the UPA. The doors of the banks were closed for the poor," the Prime Minister further stated in a tweet on X.

According to the Times of India report, public sector banks generated a record Rs 1.4 lakh crore in net profit during the financial year. An increase of 34% over the year-ago period - private sector banks increased their net by 42% to nearly Rs 1.7 lakh crore compared to Rs 1.2 lakh crore a year ago.

In recent years, public sector banks have narrowed their profit gap with private banks as they have cleaned up their balance sheets and increased earnings. In fact, the net profit of public sector banks has more than quadrupled in the last three years.

PM Modi also took an attack on the Congress, saying that when he came to power in 2014, banks were reeling with losses and high NPAs due to the phone-banking policy. 

"When we came to power, our banks were reeling with losses and high NPAs due to the phone-banking policy of UPA. The doors of the banks were closed for the poor," PM said.