Indian Banks Record High Growth in the Second Quarter of 2007-08
Most of Scheduled Commercial Banks (SCBs) have substantially increased their net profits with average rise of 30 per cent on the back of strong growth in deposits and fee based income in the second quarter of the financial year 2007-08, revealed an ASSOCHAM Eco Pulse (AEP) Study.
The ASSOCHAM Study on `Banking Sector Performance in Q2’ based on the quarterly results declared by the 17 major scheduled commercial banks has revealed that banks continued to maintain a strong momentum in both earnings growth as well as growth across all its core businesses, such as treasury income, fee based income and interest income.
Major SCBs saw a rise of about 23.82 per cent in its treasury income in Q2 of the financial year 2007-08. Fee based income of the banks registered a robust growth of 40.80 per cent in while the interest income posted a growth of 35.48 per cent in the quarter ending September 2007.
Yes Bank with the low profit base of Rs. 21.5 crore last year, incurred maximum rise of 110 per cent among all the banks. UTI Bank now known as Axis Bank registered a huge growth of 60.46 per cent in Q2, 2007-08. Its net profit went up to Rs. 227.82 crore in Q2 of the current fiscal as compared to Rs. 141.98 crore in the corresponding period last year.
Other banks, which saw significant profits, are Indian Bank (46.34 per cent), followed by Union Bank (42.04 per cent), HDFC Bank (40.14 per cent), State Bank of India (36.04 per cent), Centurion Bank of Punjab (33.76 per cent), ICICI Bank (32.79 per cent), Vijaya Bank (23.80 per cent), Allahabad Bank (14.17 per cent), IDBI Bank (12.23 per cent), ING Vysya Bank (11.09 per cent), Canara Bank (11 per cent), Syndicate Bank (10.98 per cent), Punjab National Bank (6.63 per cent) and Andhra Bank (3.26 per cent). The private sector banks continue to have higher pace of growth in their bottom lines with average 40 per cent growth as compared to 24 per cent growth recorded by public sector banks.
While Yes bank, HDFC Bank, Centurion Bank of Punjab were the best performers in the private sector, Axis bank, Indian Bank ,Union Bank and State Bank of India remained at top among the PSBs.
The AEP study has also revealed that the bank deposits have grown by 26 per cent during the second quarter. Yes Bank (129 per cent), Centurian Bank of Punjab (69 per cent), IDBI Bank (61 per cent) and HDFC Bank (43 per cent) have registered maximum growth in their deposits.
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