A healthy 37 percent rise in private banks' net profit in the June quarter

Mumbai: In the first quarter of the current financial year, the net profit of the private banks of the country has increased by 37 percent year-on-year to Rs 37683 crore. This has been possible due to Net Interest Income (NII) and strong credit growth.

The NII of private banks has increased by 26.40 percent to Rs 80,404 crore from the results of fifteen listed banks announced so far. Interest income has increased due to increase in lending rates.

In the last financial year, the Reserve Bank has increased the interest rate by 2.50 percent to 6.50 percent. Apart from this, loans have also seen a year-on-year increase of 16 percent in the June quarter. Banks have also benefited from the repricing of loans that have been repaid earlier.

Along with the increase in lending rates, banks have been forced to increase deposit rates as well. A 13.20 percent increase in deposits has been seen in the June quarter. Lenders have been forced to increase interest rates on deposits to increase liquidity.

Income through fees, commissions and government securities also increased by 39.40 percent to Rs 29653 crore. A research report said that due to the increase in loan withdrawals, there has been an increase in income through fees.

The volume of new NPAs of banks also remained under control in the June quarter. This has been made possible due to the favorable business environment apart from the banks' special focus on loans. The gross non-performing assets of the banks under review, which were a total of Rs 1.74 lakh crore in the June quarter of last financial year, have seen a decline of 32.10 per cent to Rs 1.18 lakh crore. 29.80 percent decrease in net NPA has also been seen.