Due to the closure of 2000 notes, there will be an increase in the profits of banks in the current year.

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Mumbai: Due to the decision to close the 2000 rupee note, the income of the country’s banks is increasing in the current financial year as well. In the last financial year, the accumulated profit of public sector banks crossed one lakh crore rupees, banks have started changing 2000 rupee notes from today.

An analyst said that the withdrawal of currency notes will increase the flow of notes in banks.

Savings accounts and deposits have to pay interest to the depositors, but banks rarely bear such cost in current accounts. The interest rate on savings account is relatively low. According to an estimate, an increase of two lakh crore rupees can be seen in bank deposits by the end of September.

According to the latest data of the Reserve Bank, 18.40 lakh crore rupees were deposited in the banks. Due to the recovery in the country’s economy, credit demand is also increasing. When lending rates are currently high, the net interest margin of banks is likely to increase.

In the last financial year, credit demand growth in the country was at the highest level in 11 years. It is noteworthy that the consolidated profit of the public sector banks of the country crossed the figure of one lakh crore rupees in the last financial year. In the financial year 2017-18, public sector banks incurred a loss of Rs 85,390 crore.

The combined profit of 12 public sector banks has increased by 57 percent in the financial year 2022-23 as compared to the financial year 2021-22.

During the financial years 2016-17 to 2020-21, the government was forced to infuse capital of Rs 3.10 lakh crore into public sector banks. This pressure was due to the high proportion of NPAs.