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Q1 results: Private banks' net profit rises 47% on fall in provisions

Loan repricing, high loan growth buttress NII

Banks
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In the case of term deposits, 25 of 33 domestic banks increased their term deposit rates in the range of 3-38 bps

Abhijit Lele Mumbai
Private sector banks posted 47.2 per cent year-on-year (YoY) growth in net profit in the April-June quarter (first quarter, or Q1) of 2022-23 (FY23) on sharp fall in provisions and contingencies.

Propped up by repricing of loans and robust credit growth, net interest income (NII) expanded 16.9 per cent YoY and 3.7 per cent quarter-on-quarter, reveals a BS Research analysis of 14 listed Indian private banks.

The Reserve Bank of India (RBI) in its July bulletin said banks increased their external benchmark lending rate by 50 basis points (bps) in June. Twenty-eight domestic banks have also increased their one-year marginal

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First Published: Jul 27 2022 | 8:57 PM IST

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