NBFCs clocks higher profit in FY09 than banks: Assocham

NBFCs clocks higher profit in FY09 than banks: Assocham
PTI
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First Published: Thu, May 21 2009. 04 43 PM IST
Updated: Thu, May 21 2009. 04 43 PM IST
New Delhi: The Non-Banking Financial Companies (NBFC) registered higher profits in 2008-09 as compared to those of commercial banks reeling under liquidity crunch, a survey by industry body Assocham said.
“Over all profitability of NBFCs in 2008-09 stood higher at 18.90% compared to commercial banks whose average profitability has been at the lower side of 10.08%,” the chamber said.
“As financial markets faced heat of global crisis in 2008-09, most of NBFCs faced problems in fund raising. Yet, their profitability was much higher as compared to their competitors in scheduled commercial banks,” it said.
Among the seven NBFCs surveyed, highest profitability was reported by IDFC at 20.89%, with total income at Rs3,626.38 crore with net profit of Rs757.73 crore in 2008-09 followed by HDFC and PFC at 20.76% and 20.67% respectively, Assocham president Sajjan Jindal said.
“The RBI’s monetary measures by cutting interest rates during 2008-09 has benefited the NBFCs since many of them finance their operations through market borrowings Jindal said.
Aggregate net profit to total income ratio of 17 public sector and 12 private sector banks reported to be 10.08% during 2008-09, Assocham said.
Among the PSBs, highest profitability was reported by Indian Bank and Bank of India at 15.83% and 15.50% respectively, it said adding that among private banks, the top positions were occupied by Axis Bank and Yes Bank at 13.22% and 12.46% respectively, among others.
The aggregate total income of NBFCs grew by 57.3% to Rs28,208.72 crore in FY09 from Rs17,906.84 crore in the previous fiscal, it said.
The chamber, however, has not mentioned the name of all the banks and NBFCs.
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First Published: Thu, May 21 2009. 04 43 PM IST
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