PSB’s profit jumps 66% on healthy interest margins
Eleven public-sector banks (PSBs) reported an average of 65.7 per cent year-on-year (YoY) growth in net profit at Rs 28,620 crore in the third quarter ended December 2022 (Q3FY23). Growth came primarily on the back of a steady rise in net interest income (NII).
Sequentially, the state-owned lenders posted a 13.6 per cent rise in net profit over the Rs. 25,183 crore in July-September 2022 (Q2FY23).
Almost 50 per cent of PSB net profit in Q3FY23 came from State Bank of India, the largest lender in India, the data compiled by the research Bureau for the 11 banks showed.
SBI posted the highest quarterly profit of Rs. 14,205 crore. Except Chennai-based Indian Overseas Bank, all PSBs have announced their results. IOB will do so on February 9.
The State-owned banks posted a growth rate of 24.6 per cent YoY in NIL to Rs. 94,409 crore in Q3FY23. Sequentially, it rose 904 per cent from Rs. 86,314 crore in the second quarter.
The rise in loan volumes, the benefit of repricing loans, and increase in lending rates amid a hardening interest rate cycle also contributed to healthy NIL, bankers said.
The net interest margin (NIM), an indicator of profitability, has risen to 3.55 per cent (FY17-22 average: 3.1 per cent). This is set to change and as banks increase deposit rates, said Fitch Ratings.
