CREDITABLE PERFORMANCE

INDIAN BANKS HAVE PERFORMED EXCEPTIONALLY WELL IN RECENT YEARS, WITH THEIR COMBINED NET PROFIT REACHING AN ALL-TIME HIGH OF MORE THAN ₹3 LAKH CRORE IN FY24. THEIR STRONG PERFORMANCE IS EVIDENT IN THEIR ACTIONS: THEY NO LONGER APPROACH THE GOVERNMENT WITH REQUESTS FOR RECAPITALISATION. LET’S TAKE A LOOK AT THE STATE OF THE INDIAN BANKING SECTOR:

PRINCE TYAGI, RAHUL OBEROI

SLIPPING INTEREST THE GROWTH IN COMBINED NET INTEREST INCOME (NII) OF LISTED BANKS SLOWED DOWN IN FY24 FOLLOWING A RISE OF MORE THAN 20% IN FY23 THE BOTTOM LINE SINCE FY19, THE COMBINED PROFIT AFTER TAX (PAT) OF LISTED BANKS HAS BEEN RISING STEADILY MODERATING CREDIT GROWTH CREDIT GROWTH IS SET TO CONVERGE WITH DEPOSIT GROWTH AFTER 2.5 YEARS, INDICATING A SOFTENING IN CREDIT DEMAND PROFIT PIE OUT OF A TOTAL OF 41 LISTED LENDERS, 13 PUBLIC SECTOR BANKS (PSBs) CONTRIBUTE 44% TO THE OVERALL PROFIT OF THE INDIAN BANKING SYSTEM SOURCE ACE EQUITY 11% SURGE IN NIFTY BANK INDEX IN 2024 (TILL DECEMBER 16), AND 68% IN THE PAST FIVE YEARS, WHILE THE BENCHMARK NIFTY 50 RALLIED 14% YTD, AND 105% IN THE PAST FIVE YEARS 20% YEAR-ON-YEAR GROWTH…

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Business Today (Digital) - 1 Issue, 5 January 2025

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