{"id":4417,"date":"2025-02-28T08:03:02","date_gmt":"2025-02-28T08:03:02","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=4417"},"modified":"2025-05-19T13:47:09","modified_gmt":"2025-05-19T08:17:09","slug":"psu-banks-outpace-private-lenders-in-loan-growth-market-share-rises","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/psu-banks-outpace-private-lenders-in-loan-growth-market-share-rises\/","title":{"rendered":"PSU Banks Outpace Private Lenders in Loan Growth, Market Share Rises"},"content":{"rendered":"<h3 data-start=\"86\" data-end=\"151\"><strong data-start=\"90\" data-end=\"149\">Public Sector Banks Regain Lost Ground in Credit Growth<\/strong><\/h3>\n<p data-start=\"153\" data-end=\"315\"><strong data-start=\"153\" data-end=\"191\">India\u2019s public sector banks (PSBs)<\/strong> have surpassed <strong data-start=\"207\" data-end=\"241\">private lenders in loan growth<\/strong>, marking a shift in market dynamics after years of declining dominance.<\/p>\n<ul data-start=\"317\" data-end=\"628\">\n<li data-start=\"317\" data-end=\"429\"><strong data-start=\"319\" data-end=\"378\">PSU banks\u2019 loan book grew by 12.4% YoY in December 2024<\/strong>, compared to <strong data-start=\"392\" data-end=\"426\">10.5% growth for private banks<\/strong>.<\/li>\n<li data-start=\"430\" data-end=\"537\"><strong data-start=\"432\" data-end=\"475\">PSBs accounted for 53.5% of total loans<\/strong> as of <strong data-start=\"482\" data-end=\"497\">December 31<\/strong>, up from <strong data-start=\"507\" data-end=\"534\">53.2% in September 2024<\/strong>.<\/li>\n<li data-start=\"538\" data-end=\"628\"><strong data-start=\"540\" data-end=\"625\">Private banks\u2019 market share declined from 41.8% in September to 41.5% in December<\/strong>.<\/li>\n<\/ul>\n<p data-start=\"630\" data-end=\"838\">This <strong data-start=\"635\" data-end=\"656\">reversal in trend<\/strong> follows years of <strong data-start=\"674\" data-end=\"712\">market share erosion for PSU banks<\/strong>, which <strong data-start=\"720\" data-end=\"774\">fell from 66.7% in June 2017 to 53.1% in June 2024<\/strong>, largely due to <strong data-start=\"791\" data-end=\"835\">rising bad loans and capital constraints<\/strong>.<\/p>\n<h3 data-start=\"840\" data-end=\"896\"><strong data-start=\"844\" data-end=\"894\">Strong Financial Performance Fuels PSU Revival<\/strong><\/h3>\n<p data-start=\"898\" data-end=\"1035\">The <strong data-start=\"902\" data-end=\"925\">Ministry of Finance<\/strong> reported that <strong data-start=\"940\" data-end=\"992\">PSU banks delivered strong financial performance<\/strong> in the first <strong data-start=\"1006\" data-end=\"1032\">three quarters of FY25<\/strong>:<\/p>\n<ul data-start=\"1037\" data-end=\"1356\">\n<li data-start=\"1037\" data-end=\"1128\"><strong data-start=\"1039\" data-end=\"1070\">Net profit surged 31.3% YoY<\/strong>, reaching <strong data-start=\"1081\" data-end=\"1125\">\u20b91.29 lakh crore for April-December 2024<\/strong>.<\/li>\n<li data-start=\"1129\" data-end=\"1232\"><strong data-start=\"1131\" data-end=\"1157\">Asset quality improved<\/strong>, with the <strong data-start=\"1168\" data-end=\"1194\">net NPA ratio at 0.59%<\/strong>, reflecting better risk management.<\/li>\n<li data-start=\"1233\" data-end=\"1356\"><strong data-start=\"1235\" data-end=\"1289\">PSBs remain well-capitalized and poised for growth<\/strong>, focusing on <strong data-start=\"1303\" data-end=\"1353\">agriculture, MSMEs, and infrastructure lending<\/strong>.<\/li>\n<\/ul>\n<h3 data-start=\"1358\" data-end=\"1408\"><strong data-start=\"1362\" data-end=\"1406\">Policy Reforms Driving PSU Bank Recovery<\/strong><\/h3>\n<p data-start=\"1410\" data-end=\"1499\">The government attributes this turnaround to <strong data-start=\"1455\" data-end=\"1485\">policy and process reforms<\/strong>, including:<\/p>\n<ul data-start=\"1501\" data-end=\"1726\">\n<li data-start=\"1501\" data-end=\"1558\"><strong data-start=\"1503\" data-end=\"1555\">Better credit discipline and improved governance<\/strong>.<\/li>\n<li data-start=\"1559\" data-end=\"1620\"><strong data-start=\"1561\" data-end=\"1617\">Stronger asset recognition and resolution mechanisms<\/strong>.<\/li>\n<li data-start=\"1621\" data-end=\"1682\"><strong data-start=\"1623\" data-end=\"1679\">Enhanced financial inclusion and technology adoption<\/strong>.<\/li>\n<li data-start=\"1683\" data-end=\"1726\"><strong data-start=\"1685\" data-end=\"1723\">More responsible lending practices<\/strong>.<\/li>\n<\/ul>\n<h3 data-start=\"1728\" data-end=\"1783\"><strong data-start=\"1732\" data-end=\"1781\">Outlook: PSU Banks to Sustain Growth Momentum<\/strong><\/h3>\n<p data-start=\"1785\" data-end=\"2071\" data-is-last-node=\"\" data-is-only-node=\"\">With <strong data-start=\"1790\" data-end=\"1862\">improving asset quality, capital adequacy, and renewed credit demand<\/strong>, PSU banks are expected to <strong data-start=\"1890\" data-end=\"1925\">sustain their growth trajectory<\/strong>. Their resurgence signals a <strong data-start=\"1954\" data-end=\"1989\">more balanced banking landscape<\/strong>, where public sector lenders are regaining competitiveness against private banks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Public Sector Banks Regain Lost Ground in Credit Growth India\u2019s public sector banks (PSBs) have surpassed private lenders in loan growth, marking a shift in market dynamics after years of declining dominance. PSU banks\u2019 loan book grew by 12.4% YoY in December 2024, compared to 10.5% growth for private banks. PSBs accounted for 53.5% of [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-4417","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=4417"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4417\/revisions"}],"predecessor-version":[{"id":4419,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4417\/revisions\/4419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/4418"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=4417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=4417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=4417"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=4417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}