Banks being run professionally, clocked record profits: Nirmala Sitharaman

Replying to a debate on the Banking Laws (Amendment) Bill, 2024, the minister said that all the public sector banks have turned profitable. The Bill, which amends the Reserve Bank of India Act, 1934; the Banking Regulation Act, 1949; the State Bank of India Act, 1955; the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970; and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980; was passed by the Lok Sabha by a voice vote.

Stressing that the Indian banking system is critical to the growth of the nation, Sitharaman said, “Since 2014 we have been extremely cautious so that banks remain stable. The intention is to keep our banks safe, stable, healthy, and after 10 years, you are seeing the outcome”.

Banks are being professionally run today, she said, adding the metrics are healthy so they can raise bonds, loans and run their businesses accordingly. “Indian banks have performed exceptionally well in recent years. Highest-ever net profit of Rs 1.41 lakh crore was achieved in 2023-24 and Rs 85,520 crore in the first half of 2024-25.  Today, all the public sector banks have turned profitable,” she said.