In FY24, the net profit of the banking industry surpassed Rs 3 lakh crore for the first time. Public and private sector banks that are publicly traded had a 39% increase in net profit, from Rs 2.2 lakh crore to Rs 3.1 lakh crore in FY23.

Private sector banks boosted their net by 42% to roughly Rs 1.7 lakh crore from Rs 1.2 lakh crore a year before, while public sector banks recorded a record net profit of Rs 1.4 lakh crore during the year, up 34% from the same time the previous year. Consequently, there is now a larger earnings difference between the two industries.

To put things in perspective, the total quarterly profits for all listed businesses in the first three quarters of the fiscal year came to over Rs 3 lakh crore. The most successful industry in recent years has been IT services; listed IT services businesses recorded a net profit of about Rs 1.1 lakh crore for FY24. In actuality, banks' earnings are far larger than those of IT services.

As they improved their balance sheets and raised profits, public sector banks had previously closed the profit difference with private banks. In actuality, during the past three years, public sector banks' net profits have more than doubled.

If numerous public sector banks hadn't been forced to make one-time pension provisions, their net profits in FY24 would have been greater. Nevertheless, their shares increased as a result of the pension provisions being smaller than anticipated. Despite the fact that the loan is collateralized, several public sector banks, such as Bank of Baroda, suffered because of provisions for their exposure to Go Air.

Reliance Industries continues to have the most yearly profit on a consolidated basis, at Rs 79,020 crore. Nevertheless, its earnings for FY24 was unchanged at Rs 42,042 crore when considered separately. TCS, Indian Oil, ONGC, Infosys, and the other top ten listed businesses recorded net profits of Rs43,559 crore, Rs39,618 crore, and Rs38,828 crore, respectively, for FY24.