Synopsis:
- Scheduled Commercial Banks’ (SCBs) net profit grew by 20.1% y-o-y to Rs. 0.92 lakh crore for Q2FY25, driven by business growth, lower provisions and rise in treasury income led by the significant decline in closing treasury yields. SCBs net profit grew by 4.2% to Rs. 0.92 lakh crore compared to Rs 0.89 lakh crore in the previous quarter.
- Public Sector Banks (PSBs) grew faster than Private Sector Banks (PVBs), with y-o-y growth rates of 35.6% and 6.9%, respectively, reaching Rs. 0.47 lakh crore and Rs. 0.44 lakh crore in Q2FY25.
- Return on Assets (RoA, annualised) of SCBs increased by 8 bps y-o-y to 1.40% in Q2FY25, meanwhile it inched up by 3 bps sequentially driven by a rise in treasury incomes.
- SCBs were adequately capitalised in Q2FY25 though the Capital Adequacy Ratio (CAR) declined by 18 bps y-o-y.
- PSBs’ median Common Equity Tier- 1 (CET-1) ratio expanded by 148 bps y-o-y to 13.7% driven by robust growth in profitability, however PVBs CET-1 ratio declined 22 bps y-o-y to 14.2% in Q2FY25.
- For PSBs median CAR increased by 84 bps y-o-y to 16.8% as many PSBs have been raising capital, while for PVBs declined by 49 bps y-o-y to 16.3%.
