The Q1 was a reboot for the economy, while many companies regained their position in the market some weren’t able to. The banking sector did benefit a lot from this. Private sector banks helped the businesses to grow. The Q1 results for these banks are worth looking at.
The quarter 1 (Q1) for this financial year (FY23), started on 1 April and ended on 30 June 2022. During this quarter there were many economic changes, the rising prices of commodities resulting in inflation, the Russia-Ukraine war, declining rupee value, etc. The Indian economy’s response to the global crisis was great. It was balanced in some aspects and in others, the country did struggle a little but found its way.
Considering all the aspects the baking sector did help a lot. By providing credits at reasonable rates, encouraging its customers to take credit actions as well as ensuring customer security. The banking sector contributes approx 7.7 percent to the total GDP and 54.64 percent is the contribution of private banks. The country has a total of 21 private banks as of January 2022.
Here are the Q1 results for the top four private banks in the country:
The largest private sector bank in the country reported a net profit of ₹9,196 crores which showed a year-on-year (YoY) growth of 19 percent. The profit before tax amounted to ₹12,180.1 crores which is greater by 18.2 percent than last year. The company generated a revenue of ₹25,869.6 crores which is the total net value and the core net revenue for the bank rose by 19.8 percent marking the amount at ₹27.181.4 crores. The net interest income shown by the bank was ₹19,481.4 crores. The total deposits with the bank increased by 19.2 percent and the total balance sheet size for the company was ₹21,09,772 crores.
Being the second largest private bank in the country, its operations were further expanded and the company’s growth is noteworthy. The bank generated a net profit of ₹6,905 crores which is an increase of 50 percent. The company’s gross profit was recorded at ₹10,273 crores. The Net Interest Income (NII), for Q1, was ₹13,210 crores showing a sharp growth of 21 percent. The total deposits with the company amounted to ₹10,50,349 while the total advances were ₹8,95,625 crores. The company expanded its operations with a total of 5,534 branches and also increased the number of ATMs to 13,379. The bank also established a great digital presence making banking easier and convenient for its customers.
Kotak Mahindra Bank
Third on the list and the fourth largest private bank in the country, Kotak Mahindra bank has impressed its customers with excellent services. The financial institution serves the best resources to its customers and takes care of their needs. Though the customers are delighted by the bank, investors and other stakeholders are a little disappointed. The company’s numbers did not reach the market estimations. The net profit for the company rose by 26 percent resulting in a figure of ₹2,071.15 crores. The total income of the company was recorded as ₹8,582.25 crores. The NII was shown in the account at ₹4,697 crores. The company informed that the performance was affected due to a certain number of bad loans. The company has made necessary provisions for it and certainly will be recovering them soon.
Last but not least is Yes Bank Ltd. This private sector bank is famous for its rapid growth over the years as well as premium service provisions. The bank showed a growth of 50 percent in net profit showcasing the amount at ₹311 crores. The NII by the bank was generated for ₹1,850 crores which shows a YoY growth of 32 percent while the non-interest income for this quarter was recorded at ₹781 crores. The total deposits with the bank were counted at ₹1,93,241 crores and the total advances were recorded at ₹1,87,367 crores showing a growth of 18 percent and 14 percent respectively. The bank’s digital presence is widespread, in India every third digital transaction happens through Yes Bank, Prashant Kumar MD, and CEO.
This was a brief overview of the private banks in the country. All of them have shown great progress for the first quarter of this year and investors have their eyes on them. These banks have not only helped the citizens but also many businesses found ease of credit due to these banks. With their continuous initiatives, they are expanding and helping the citizens at every point.