Q2 Results: An Analysis of How Banks Fared this Quarter While Customer Deposits and Retail deposits helped IDFC, Agriculture and Corporate loans boosted SBI's earnings. Additionally, BoB saw growth in Auto Loan, Home Loan, Personal Loan, Mortgage Loan and Education Loan and Bank of India saw growth in Retail Credit, Agriculture Credit, and MSME Credit
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Major banking players such as Central Bank of India, UCO, Bank of India, Bank of Baroda, State Bank of India, and IDFC First Bank, recently presented their second-quarter results.
While Customer Deposits and Retail deposits helped IDFC, Agriculture and Corporate loans boosted SBI's earnings. Additionally, BoB saw growth in Auto Loan, Home Loan, Personal Loan, Mortgage Loan and Education Loan and Bank of India saw growth in Retail Credit, Agriculture Credit, and MSME Credit.
Bank of India
Bank of India reported a 52 per cent rise in its net profit to INR 1,458.43 crore in its Q2FY24 results. It reported a net profit of INR 960 Cr in Q2FY23. However, the profit dipped by 6 per cent as compared to a figure of INR 1,551 Cr in Q1FY24.
BoI's Net Interest Income (NII) rose by 13 per cent Y-o-Y to stand at INR 5,740 Cr in Q2FY24 as compared to INR 5,083 Cr for Q2FY23.
Global Deposits increased by 8.68 per cent Y-o-Y to touch INR 7,03,751 Crore, while domestic deposits stood at INR 5,98,850 Cr.
Its Gross NPA ratio and Net NPA ratio are down by 267 bps and 38 bps Y-o-Y, respectively. Furthermore, its Retail Credit, Agriculture Credit, and MSME Credit played a part in the overall increase. Retail Credit grew by 14.65 per cent to INR 1,00,260 Cr, Agriculture Credit grew by 10.82 per cent to INR 77,206 Cr, and MSME Credit grew by 10.82 per cent to INR 73,731 Cr, all Y-o-Y.
Bank of Baroda
The bank achieved a total business of INR 22,74,148 crore, registering a growth of 15.8 per cent YoY.
Bank of Baroda, through its Q2 result announcement, shared that it had clocked in INR 4,253 crore as its net profit for Q2FY24. This was an increase of 28.4 per cent Y-o-Y when it saw a net profit of INR 3,313 crore. Its net profit for the previous quarter was INR 4,070 crore.
Global Deposits increased by 14.6 per cent Y-o-Y to INR 12,49,647 crore, whereas domestic deposits made up INR 10,74,114 crore and saw an increase of 12 per cent Y-o-Y.
BoB saw growth in high focus areas such as Auto Loan (21.1 per cent), Home Loan (16.1 per cent), Personal Loan (67.2 per cent), Mortgage Loan (13.3 per cent), and Education Loan (18.3 per cent) on a Y-o-Y basis.
Its portfolio in agriculture loan, total gold loan, and organic MSME grew to reach INR 1,30,694 crore, INR 43,884 crore, and INR 1,13,512 crore, respectively.
The bank's Gross NPA narrowed by 26.8 per cent Y-o-Y to INR 33,968 crore in Q2FY24 and its Net NPA Ratio of the Bank stood at 0.76 per cent in Q2FY24 as compared with 1.16 per cent same quarter last year.
State Bank of India
India's largest public sector bank, SBI, achieved a total income of over INR 1.12 lakh crore for the quarter. Its net profit for Q2FY24 stood at INR 14,330 crores, growing by 8.03 per cent Y-o-Y. The Operating Profit for the quarter was INR 19,417 crores but saw a decline of 8.07 per cent Y-o-Y.
SBI's Credit grew at 12.39 per cent Y-o-Y with Domestic Advances and Foreign Offices' Advances growing by 13.21 per cent and 8.11 per cent Y-o-Y, respectively. The Domestic Advances growth was driven by SME Advances and Retail Personal Advances.
Agriculture and Corporate loans registered saw a Y-o-Y growth of 14.76 per cent and 6.62 per cent, respectively.
The bank's Gross NPA ratio narrowed by 97 bps Y-o-Y and by 21 bps Q-o-Q to stand at 2.55 per cent. Its Net NPA Ratio improved by 16 bps Y-o-Y and by 7 bps Q-o-Q.
IDFC First Bank
On Saturday, IDFC First Bank declared its Q2 result announcement where they shared that its net profit for the quarter stood at INR 751 crore. This was a 35 per cent Y-o-Y growth from INR 556 crore in Q2FY23.
The net interest income (NII) for the bank was reported at INR 3,950 crore, which is up 31 per cent from the Q2FY23 while its net interest margin (NIM) stood at 6.32 per cent.
IDFC's funded assets stood at INR 1,83,236 crore increasing by 26 per cent Y-o-Y from INR 1,45,362 crore.
Its Gross NPA improved from 3.18 per cent to 2.11 per cent while its Net NPA improved from 1.09 per cent to 0.68 per cent in Q2FY24.
Customer Deposits and Retail deposits increased by 44 per cent and 50 per cent Y-o-Y to INR 1,64,726 crore and INR 1,27,595 crore, respectively.