Banks Report Robust Q3 Numbers As Profits Rise, Asset Quality Improves: CareEdge

CareEdge Research Report

Net interest income of scheduled commercial banks grew by 25.5% YoY to Rs 1.8 lakh crore in Q3 FY23 due to a healthy improvement in credit offtake, and a higher yield on advances.

Net interest margin of SCBs improved by 17 basis points YoY to 3.3% in Q3 FY23 as loans were repriced at a faster rate, while deposit rates have yet to fully reflect the rise. NIMs are expected to stabilise with negative bias due to the repricing of liabilities.

SCBs reported a robust rise in its advances by 18.5% YoY in Q3 FY23. Public sector banks net advances grew by 18.9% in the quarter whereas private sector banks rose by 17.9%.

SCBs pre-provisioning operating profit grew by 28.5% YoY to Rs 1.30 lakh crore due to higher expansion in NII and supported by non-interest income. Cost to income ratio reduced by 230 bps YoY to 46.5% in Q3 FY23.

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