Synopsis:
- Pre-provision operating profit (PPOP) for Scheduled Commercial Banks (SCB) grew by 11.6% y-o-y to reach Rs 1.07 lakhs crore in Q2FY25. Sequentially, PPOP increased by 3.0%, aided by growth in other income, including treasury and fee income, despite moderation in Net Interest Income (NII). The PPOP margin for SCBs rose by 9 bps both y-o-y and sequentially, reaching 2.48%.
- The cost-to-income ratio of SCBs decreased by 0.78% to 46.7% in Q2FY25. Despite a drop in Net Interest Margin (NIM), strong treasury gains and lower operating expense growth compared to last year.
