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| NBFCs register higher profit in FY09 than banks: Assocham |
| Press Trust of India / New Delhi May 21, 2009, 16:34 IST |
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The Non-Banking Financial Companies clocked higher profits in 2008-09 as compared to those of commercial banks reeling under liquidity crunch, a survey by industry body Assocham said. "Over all profitability of NBFCs in 2008-09 stood higher at 18.90 per cent compared to commercial banks whose average profitability has been at the lower side of 10.08 per cent," the chamber said.
"As financial markets faced heat of global crisis in 2008-09, most of NBFCs faced problems in fund raising. Yet, their profitability was much higher as compared to their competitors in scheduled commercial banks," it said.
Among the seven NBFCs surveyed, highest profitability was reported by IDFC at 20.89 per cent, with total income at Rs 3,626.38 crore with net profit of Rs 757.73 crore in 2008-09 followed by HDFC and PFC at 20.76 per cent and 20.67 per cent respectively, Assocham President Sajjan Jindal said. "The RBI's monetary measures by cutting interest rates during 2008-09 has benefited the NBFCs since many of them finance their operations through market borrowings," Jindal said.
Aggregate net profit to total income ratio of 17 public sector and 12 private sector banks reported to be 10.08 per cent during 2008-09, Assocham said.
Among the PSBs, highest profitability was reported by Indian Bank and Bank of India at 15.83 per cent and 15.50 per cent respectively, it said adding that among private banks, the top positions were occupied by Axis Bank and Yes Bank at 13.22 per cent and 12.46 per cent respectively, among others.
The aggregate total income of NBFCs grew by 57.3 per cent to Rs 28,208.72 crore in FY’09 from Rs 17,906.84 crore in the previous fiscal, it said. The chamber, however, has not mentioned the name of all the banks and NBFCs.
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