Public sector banks report healthy growth in profit in Q2
Asset quality of SBI saw an improvement during the quarter with the gross non-performing asset (GNPA) ratio falling 21 basis points to 2.55% on a quarter-on-quarter basis.
NEW DELHI: On the back of growth in net interest income (NII), which is the difference between a bank’s interest earned and paid, public sector banks reported healthy growth in their net profit for the quarter ending September 2023 (Q2FY24).
The country’s largest lender- State Bank of India reported an 8% year-on-year (YoY) rise in net profit at Rs 14,330 crore in Q2FY24. It had reported a PAT of Rs 13,625 crore in the year-ago quarter. Net interest income (NII) in Q2FY24 rose 12.3% YoY to Rs 39,500 crore while income from other sources rose 21.6% to Rs 10,790 crore. Net interest margin, however, slipped by 12 basis points to 3.43% in Q2.
Operating profit fell 8.07% YoY in the reporting quarter to Rs 19,417 crore while its return on assets stood at 1.01% during the quarter, a 3 bps decline.
Asset quality of SBI saw an improvement during the quarter with the gross non-performing asset (GNPA) ratio falling 21 basis points to 2.55% on a quarter-on-quarter basis. On YoY basis, GNPA improved by 97bps. Net NPA ratio came down to 0.64% by September-end as against 0.71% as of June 30.
Gross slippages in the September quarter was at Rs 4,081 crore. Provisions for the quarter fell 96% YoY to Rs 115.3 crore in Q2FY24. Gross advances grew 12.4% YoY to Rs 34.11 lakh crore while its deposits rose 12% to Rs 46.89 lakh crore. Domestic retail loan books grew by 15.68% and corporate loans by 6.62%.
Bank of Baroda (BoB) reported a net profit of Rs 4,252.89 crore in Q2FY2, up 28.3% YoY. Its NII during the quarter stood at Rs 10,831 crore, up 6.4 YoY. BoB improved its asset quality, with the GNPA coming down to 3.32% of the gross advances by the end of September 2023, from 5.31% in the year-ago period. Sequentially, GNPA improved by 19 bps. Net NPAs fell to 0.76% from 1.16% in the same quarter a year ago and 0.78% in the preceding June quarter.
Bank of India’s standalone net profit came at Rs 1,458 crore in Q2, which is higher by 52% as against Rs 960 crore recorded in the year-ago period. The public sector lender’s net interest income stood at Rs 5,740 crore in Q2FY24, a growth of 13% as against Rs 5,083 crore reported in the same quarter of the previous fiscal.
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