Banks record high growth in Q2 : Assocham

Banks record high growth in Q2 : Assocham

New Delhi:Most of the scheduled commercial banks (SCBs) have substantially increased their net profits with an average rise of 30% on the back of strong growth in deposits and fee based income in the second quarter of the financial year 2007-08.

The Assocham Eco Pulse (AEP) study on Banking Sector Performance in Q2’ based on the quarterly results declared by the 17 major scheduled commercial banks 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.

The major SCBs whcih saw a rise of about 23.82% 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% while the interest income posted a growth of 35.48% in the quarter ending September 2007.

Yes Bank with a low profit base of 21.5 crore last year, incurred maximum rise of 110% among all the banks. UTI Bank now known as Axis Bank registered a huge growth of 60.46% in Q2, 2007-08. Its net profit went up to 227.82 crore in Q2 of the current fiscal as compared to 141.98 crore in the corresponding period last year.

Other banks, which saw significant profits, are Indian Bank (46.34%), followed by Union Bank (42.04%), HDFC Bank (40.14%), State Bank of India (36.04%), Centurion Bank of Punjab (33.76%), ICICI Bank (32.79%), Vijaya Bank (23.80%), Allahabad Bank (14.17%), IDBI Bank (12.23%), ING Vysya Bank (11.09%), Canara Bank (11%), Syndicate Bank (10.98%), Punjab National Bank (6.63%) and Andhra Bank (3.26%).

The private sector banks continue to have higher pace of growth in their bottom lines with an average 40% growth as compared to 24% growth recorded by public sector banks.