 "Listed small finance banks (SFBs) posted a decline in net profit by 0.6 per cent year-on-year (Y-o-Y) to Rs 1,300 crore during the first quarter of FY25 as provisions and contingencies more than doubled Y-o-Y to Rs 1,277 crore. Sequentially, the decl")
The earnings season is over. Barring a few, most listed banks have recorded handsome net profits in the June quarter of the current financial year. Their combined net profit has risen 21.04 per cent on a year-on-year basis. For a few banks, bad loans as a percentage of total loans have risen, but that’s not alarming.
What are the two most critical parameters of banks’ earnings that give us a clue as to how long the good run will continue?
So far, all eyes had been on credit cost: The movement of bad loans and the provision coverage
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