Banks to report 25% rise in profits in second quarter: IDFC Securities

The growth in NII would be 24% for the private banks while 10% for PSBs, the report claimed.

Banks are expected to report 25% growth in net profit in the second quarter according to an IDFC Securities report.

The report further adds nationalised banks (except State Bank of India) are expected to clock to 18% growth against 26% growth in profits of private banks.

The banking industry’s net interest margins (NIMs), a key indicator of the banks’ profitability is expected to flat vis-à-vis first quarter, adds this report.  

Net interest income (NII) is expected to rise 14% for the banking system. The growth in NII would be 24% for the private banks while 10% for PSBs, report claimed.

On asset quality front it said, slippages would remain high for PSBs but would be cushioned by strong recoveries.  Restructuring would not be as high as last quarter, said the report.

 

Bank	Net Profit  Q2 FY 2012	Net Profit Q2 FY 2013 E	% Change (Y-o-Y)
State Bank of India	2810.4	3778.8	34.5
Punjab National Bank	1205.1	1276.8	6
ICICI Bank	1503.2	1843	22.6
HDFC Bank	1199.4	1551	29.3
Bank of Baroda	1166.1	1216.7	4.3
Axis Bank	920.3	1160.7	26.1
Bank of India	491.1	886.3	80.5

Figures in Rs Crore: Source: IDFC Securities Research.