Banks See Drop In Growth Rates In Second Quarter

The 31 listed banks have reported a lower rate of growth in revenue and profit in the second quarter of the current financial year compared with the earlier quarter. Revenue from interest during July-September 2001 rose 13.87 per cent compared with 14.44 per cent during April-June 2001. The rate of growth in net profit was down to 12.87 per cent (19.37 per cent in the first quarter).

The results for the first half of the current fiscal (April-September 2001) look better on account of the better first quarter show. Interest revenue of the 31 banks rose 14.15 per cent while net profit grew 16.19 per cent. The other income, which rose by 18.94 per cent, continued to play a major role in shoring up profits in the banking sector. The share of other income in total income rose to 12.88 per cent in the first half of 2002 from 12.36 per cent in H1, 2001.

 

The share of other income in net profit rose to 143 per cent from 140 per cent in the half year.

The 18 private sector banks were slower in revenue growth in the second quarter compared with the first quarter, while their net profits rose substantially in the second quarter. The 13 public sector banks reported a lower rate of growth in both revenue and profits in the second quarter.

The total revenue from interest for the 18 private sector banks rose 16.5 per cent in second quarter and, thanks to a 133 per cent jump in other income, their aggregate net profits rose 25.2 per cent. Revenue from interest for the 13 public sector banks rose by 13.3 per cent while the growth in aggregate net profit was 10 per cent.