A year ago, in the same quarter, the net profit increased to ₹ 19,160 crore, to 17,035 crores.
It was an estimated of more than 16,964 crores in a Bloomberg Poll of analysts.
The increase in profit from the sale of government securities through the quarter, including the policy rate of 75 basis points (BPS) was seen, and high foreign exchange trading income saved the lender’s lower-row.
Net interest margin (NIM), or the difference between the yield on advances and which was paid on the deposit, fell from 3.35% to 3.02% a year ago, reflecting falling returns on domestic advances, even the cost of deposit remained high.
“We expect a U-shaped recovery in the margin,” said Chairman CS Setty. “This may be soft in the first two quarters of the financial year, but then at the end of the previous financial year we cured to end near the levels seen.”
At the end of FY25, NIM was 3.22% in the country’s largest mass lender, which is about fifth of all outstanding bank credit in India.
Setty hopes to deposit and deposit and Banking sector liquidity Already declared 100 BPS Cash Reserve Ratio (CRR) cut, to pursue NIMS. The CRR deficiency, starting from September, is expected to promote both liquidity and aid, which is in sharp broadcast of the front loaded rate action.
The benefits from sales and revaluation of Treasury Investment increased by one and a half times from ₹ 2,589 crore to ₹ 6,326 crore a year ago. The market-to-market profit increased by four and a half times to ₹ 1,632 crore from Forex trading income. These benefits helped increase the increase of 55% in non-onion income by ₹ 17,346 crore.
Agencies‘Loans stable increase, deposit’
India’s largest lender by property expects 12% credit enhancement And 10% deposit increase in this fiscal. Overall, the bank’s progress climbed 12%, which is slightly faster than an increase of 10% in advances recorded by the banking system.
The loan for SME increased by 19%, agricultural advances increased by 13% while retail debt increased by 13% YOY to 15% in home loans.
The increase in corporate advances was comparatively slow at 6%. However, Setty stated that he was still convinced about the growth of double digits in corporate advances behind demands from areas such as renewable energy, roads, refineries and data centers.
“We have a strong pipeline of more than ₹ 7 lakh crore, with a pending sanctions of and 3.89 lakh crore pending sanctions and pending disbursement of of 3.41 lakh crore loans,” Setty said.
“Yes, disbursement is taking time, but with being more competitive in interest rates due to recurrence of marginal cost-based lending rates, it will help in demanding companies.”