Banks' post-tax net rose 48 per cent in the financial year 2017 on account of higher other operating income and moderate rise in risk provisions, according to Financial Stability Report (FSR) of the RBI.
In the financial year 2015-16, net profit of banks had declined by 61.6 per cent.
During the year, public sector banks again recorded negative returns on their assets.
Also Read
"The share of other operating income in total operating income increased sharply to 36.2 per cent in 2016-17 from 30.7 per cent in 2015-16, mostly contributed by profit on securities trading," the FSR report released today said.
Continuing deceleration in the growth of assets of banks along with deterioration in their asset quality resulted in a secular decline in the share of net interest income in total operating income.
Credit growth declined on year-on-year basis, across the bank-groups, whereas, deposit growth increased between September 2016 and March 2017.
Banks' capital to risk-weighted assets ratio improved from 13.4 per cent to 13.6 per cent between September 2016 and March 2017.
Disclaimer: No Business Standard Journalist was involved in creation of this content
