Synopsis:
- Scheduled Commercial Banks’ (SCBs) net profit grew by 68.9% y-o-y to Rs. 0.73 lakh crore for Q1FY24 due to robust growth in Pre-Provisioning Operating Profit (PPOP) and lower provisions.
– Public Sector Banks (PSBs) reported strong net profit growth of 124.8% y-o-y to Rs. 0.34 lakh crore in Q1FY24.
– Private Sector Banks (PVBs) also posted a growth of 38.4% y-o-y to Rs. 0.39 lakh crore in the quarter.
- Return on Assets (RoA, annualised) of SCBs improved by 44 bps y-o-y to 1.31% in Q1FY24. However, banks faced marginal pressure on a sequential basis due to rising cost of deposits, reduction in low-cost CASA deposits and seasonality impact.
- SCBs were adequately capitalised in Q1FY24. PSBs’ median Common Equity Tier- 1 (CET-1) ratio expanded by 90 bps y-o-y to 12.3% in the quarter due to robust growth in profitability, while median CAR expanded by 100 bps y-o-y to 15.9% on account of profitability and bond issuances.
