look news india
Mumbai: Private banks' net profit rose 26.30 per cent year-on-year to Rs 48,982 crore in the first quarter of the current financial year. Income data indicates that profit has increased due to strong loan growth and increase in other income.
In the June quarter, gross non-performing assets (GNPA) in private banks increased by 4.90 percent year-on-year to Rs 1.33 trillion. On a quarterly basis, this increase was 3.30 percent. Net NPS increased by 10.10 percent year-on-year to Rs 33,401 crore. According to a report by a research firm, this figure was 7.40 percent on a quarterly basis.
NPAs have increased, but provisions have not increased accordingly, as the existing provision coverage is high. In the post-corona era, banks are setting aside more money than the regulatory norms.
Most private banks have indicated that unsecured loans, especially credit cards and personal loans, are under pressure.
The net interest margin of banks is declining due to intense competition for deposits.
