Indian Banks Record Their Highest Ever Combined Profit Of Nearly Rs 60,000 Crore In Q3
Nearly Rs 60,000 crore. That¡¯s the massive amount of combined profit recorded by Indian commercial banks in the June-September quarter. This is the highest profit recorded by Indian banks in any quarter. Finance minister Nirmala Sitharaman tweeted the record performance of public sector banks and attributed it to the ¡°continuous effort of the government for reducing non-performing assets (NPAs).
Nearly Rs 60,000 crore. That¡¯s the massive amount of combined profit recorded by Indian commercial banks in the June-September quarter. The record profit is an increase of 59% over the Rs 37,567 crore figure of a year-ago period. This is the highest profit recorded by Indian banks in any quarter.
Private banks have collectively reported a profit of Rs 33,165 crore, which is around 67% more than Rs 19,868 crore in the previous year. Public sector banks have reported a combined net of Rs 25,685 crore for Q2, up 50% from Rs 17,123 crore in FY22, as per TOI report.
More than half of the profit of public sector banks has been generated by SBI alone, which posted its highest quarterly earnings of Rs 13,265 crore, an increase of 74% over previous year.
The report mentioned that in the private sector, HDFC Bank reported a net profit of Rs 10,605 crore, an increase of 20%. ICICI Bank reported a profit of Rs 7,758 crore (up 37%), Axis Bank Rs 5,330 crore (up 70%) and Kotak Mahindra Bank Rs 2,581 crore (up 27%).
indiatimes
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Finance Minister Nirmala Sitharaman's Tweet
Finance minister Nirmala Sitharaman tweeted the record performance of public sector banks this week and attributed it to the ¡°continuous effort of the government for reducing non-performing assets (NPAs)¡±.
In Q2 of FY23 (year-on-year)
¡ª Nirmala Sitharaman (@nsitharaman) November 7, 2022
? SBI reports 74 % jump in profit to Rs 13,265 cr
? Canara Bank reports 89% jump in profit to Rs 2,525 cr
? UCO Bank reports 145% jump in profit to Rs 504 cr
? Bank of Baroda reports 58.70% profit of Rs 3,312.42 cr (2/2) pic.twitter.com/YiaspDnhws
twitter/fm sitharaman
As per the report, government had been facing flak for record losses by public sector banks in earlier years after they made provisions for bad loans to industrial houses over several quarters from 2016. For public sector banks, the profits for the first half of the current fiscal year was Rs 40,991 crore, an increase of 31% over Rs 31,290 crore in the first half of FY22.
Also, the rise in quarterly profit is driven by a surge in credit, which grew nearly 20%, even as banks revised their lending rate in line with RBI¡¯s rate hikes. Banks have managed to improve their margins as cost of deposits have not risen in line with the increase in lending rates, the report mentioned.
In the last few years, Indian banks had to make provisions for loans worth over Rs 10 lakh crore. The road to recovery has been a long one, and has been aided by recapitalisation of banks with the government infusing Rs 3.1 lakh crore over the last five years. Out of this capital, Rs 35,000 crore was through budgetary allocation and the remaining Rs 2,75,000 crore was by way of recapitalisation bonds, where banks lend money to the government, which hands it back as equity.
Top Banks As Per Market Capitalization
Indian banks with highest market capitalization as per BSE's list of top 100 companies, are: HDFC Bank (Rs 840732.93 Crore),ICICI Bank (Rs 635189.71 Crore), SBI (Rs 549354.48 Crore), Kotak Mahindra Bank (Rs 376585.35 Crore) and Axis Bank (Rs 268690.06 Crore).
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