Public Sector Banks Outperform Private Rivals in Q4FY25: CareEdge Ratings Report
The latest CareEdge Ratings report highlights public sector banks surpassing private counterparts in profitability during Q4FY25, with a 13.1% net profit increase year-on-year. Overall, Scheduled Commercial Banks saw improved financial performance, while certain private banks faced challenges affecting sector growth.
- Country:
- India
In a notable divergence from recent trends, public sector banks have posted superior financial results compared to their private sector counterparts during the fourth quarter of the fiscal year 2025, according to a recent analysis by CareEdge Ratings.
The report reveals that Scheduled Commercial Banks collectively witnessed a moderate enhancement in profitability, driven by business expansion and reduced provisioning needs. SCBs saw net profits climb by 4.3% year-on-year, reaching Rs 0.93 lakh crore for Q4FY25.
Contrastingly, private sector banks experienced a contraction of 4.7% in net profits due to accounting issues and pressures in specific segments. However, excluding anomalies, these banks indicated potential growth. Overall, asset quality improvements across the banking sector painted an optimistic picture for the future.
(With inputs from agencies.)
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