Private sector banks delivered a strong performance in the September quarter, buoyed by robust loan growth and improved asset quality.
Most banks saw 20% growth in their loan books during the second quarter, led by retail loans. However, unsecured loans grew even stronger, at 35-40%.
Banks' net interest margins, which represent the return they earn on their interest-earning assets, have been shrinking recently due to their rising cost of deposits. ICICI Bank, Kotak Mahindra Bank and Yes Bank have all experienced a sequential drop of 20-35 basis points in their net interest margins. Despite this, their margins continue to be healthy when compared to the previous year.
A basis point is one-hundredth of a percentage point.
The share of current and savings accounts (CASA) in total deposits continued to fall for most banks, adding to margin contraction.
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هذه القصة مأخوذة من طبعة October 24, 2023 من Mint Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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