State-run banks post 81% rise in Q4 profit; NII up 18.5% to Rs 70,825 cr

Enhance capital adequacy and provisions for bad loans

Public sector lenders have posted an 81 per cent year-on-year (YoY) increase in net profit in the fourth quarter ended March 2022 (Q4FY22) on improvement in net interest income (NII) and reduction in provisions for bad loans.

For FY22, net profit rose by 91.3 per cent.

Nine of the 12 public sector banks have announced results so far.

NII, which is earnings from loans minus what is paid on deposits, rose 18.5 per cent YoY to Rs 70,825 crore in Q4FY22.

While low interest rates on loans shrank interest income, banks benefited from a fall in the cost of funds amid abundant liquidity in