Latest news with #SCBs
India Gazette
5 days ago
- Business
- India Gazette
Public sector banks outshine Private lenders in Q4FY25 profit, driven by business expansion: CareEdge Report
New Delhi [India], June 4 (ANI): The government-owned banks have reported higher profits than their private sector counterparts in the fourth quarter of the financial year 2025, according to a recent report by CareEdge Ratings. The report shows that Scheduled Commercial Banks (SCBs) collectively witnessed a moderate improvement in their financial performance in Q4FY25. The report said 'Net profit for SCBs increased by 4.3 per cent year-on-year to Rs 0.93 lakh crore in the quarter, driven by business expansion.... Conversely, Private Sector Banks (PVBs) experienced a decline of 4.7 per cent, reaching Rs 0.42 lakh crore in Q4FY25'. Their Net Interest Income (NII), the difference between interest earned and interest paid, rose 3.6 per cent year-on-year (YoY) to reach Rs 2.09 lakh crore, supported by steady loan growth. However, this was partially offset by rising deposit costs, which impacted margins. The Net Interest Margin (NIM) for SCBs declined 21 basis points (bps) YoY to 2.99 per cent, mainly due to slower growth in high-yield loan segments, increased deposit rates, and slower growth in low-cost CASA deposits. Despite pressure on margins, net profit for SCBs increased by 4.3 per cent YoY to Rs 0.93 lakh crore in the quarter. This improvement came on the back of business expansion, lower provisioning requirements, and higher income from other sources. Among SCBs, Public Sector Banks (PSBs) showed impressive growth, with their net profit rising 13.1 per cent YoY to Rs 0.51 lakh crore. This surge in profit is attributed to a low base in the previous year, better asset quality, gains from treasury operations, and controlled operating expenses. In contrast, Private Sector Banks (PVBs) saw a 4.7 per cent decline in net profit, bringing their total to Rs 0.42 lakh crore in Q4FY25. The fall was largely due to losses posted by one major private bank, which faced accounting mismatches, difficulties in the microfinance segment, and higher provisioning needs. However, if this particular bank's performance is excluded, the overall profit of PVBs would have actually grown 5.4 per cent YoY, reaching Rs 0.46 lakh crore, showing relatively healthy growth. The banking sector's asset quality also improved in Q4. The Net Non-Performing Asset (NNPA) ratio of SCBs dropped to an all-time low of 0.5 per cent, compared to 0.6 per cent a year ago Overall, the report suggested that public sector banks have emerged stronger in the latest quarter, supported by improvements in profitability and asset quality, while private banks faced pressure due to isolated issues in select institutions. (ANI)
Indian Express
30-05-2025
- Business
- Indian Express
Bank credit growth to agri sector, credit card outstanding plummet: RBI
Bank credit growth to agriculture and allied activities declined sharply to 9.2 per cent at Rs 23.09 lakh crore during the fortnight ended April 18, 2025 as against 19.8 per cent in the corresponding fortnight of the previous year, the Reserve Bank of India said on Friday. Credit card outstanding growth also declined to 10.6 per cent to Rs 2.87 lakh crore from 23 per cent (Rs 2.59 lakh crore) a year ago, according to RBI data. On a year-on-year (y-o-y) basis, non-food bank credit as on the fortnight ended April 18, 2025, grew by 11.2 per cent as compared to 15.3 per cent during the corresponding fortnight of the previous year (April 19, 2024), the RBI said. However, gold loans growth jumped by 119.6 per cent to Rs 2.23 lakh crore from Rs 1.01 lakh crore a year ago. According to the RBI, bank credit to industry grew at a slower pace of 6.7 per cent at Rs 38.83 lakh crore in the fortnight ended April 18 annually compared with 6.9 per cent in the corresponding period of the previous year. Among major industries, outstanding credit to basic metal and metal products, all engineering, vehicles, vehicle parts and transport equipment, textiles and construction recorded an accelerated year-on-year growth, according to sectoral deployment of bank credit – April 2025 data. However, credit growth in the infrastructure segment decelerated, the RBI said. The RBI said the data on sectoral deployment of bank credit for April 2025 has been collected from 41 select scheduled commercial banks, accounting for about 95 per cent of the total non-food credit by all SCBs. 'Credit to services sector moderated to 11.2 per cent (y-o-y) (19.5 per cent in the corresponding fortnight of the previous year), primarily due to decelerated growth in credit to non-banking financial companies (NBFCs). Credit growth (y-o-y) to trade and computer software segments remained elevated,' RBI said. Further, RBI said that the credit to personal loans segment registered a decelerated growth of 14.5 per cent, as compared with 17 per cent a year ago, largely due to a decline in growth of other personal loans, vehicle loans and credit card outstanding.
