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Banks (Finance)

Private Sector Bank Reports 14.6% YoY Net Profit Growth in Q1FY25

Strategic Insights

— 2 min read

A leading private sector bank in India has recorded a significant net profit growth of 14.6% year-on-year in the first quarter of financial year 2025 (Q1FY25), reaching a net profit of Rs 11,059 crore. This growth is attributed to a 7.3% increase in net interest income (NII) to Rs 19,553 crore, surpassing the estimated 7% growth. The bank's core operating profit also saw an 11% year-on-year increase, reaching Rs 15,412 crore in Q1FY25.

Key Takeaways:

  • The bank's net profit growth of 14.6% YoY is the highest in the industry, outpacing its peers.
  • Net interest income (NII) rose by 7.3% YoY to Rs 19,553 crore, exceeding the estimated 7% growth.
  • The bank's core operating profit increased by 11% YoY, reaching Rs 15,412 crore in Q1FY25.
  • Provisions (excluding tax provisions) rose by 3.1% to Rs 1,332 crore, up from Rs 1,292 crore in the same period last year.
  • Net non-performing assets (NPAs) ratio experienced a slight increase to 0.43% from 0.42% in the previous quarter.
  • Gross NPAs increased to Rs 28,718.6 crore during the quarter, up from Rs 27,961.7 crore in the March 2024 quarter.
  • The gross NPA ratio decreased marginally to 2.15% in Q1FY25 from 2.16% in Q4FY24.
  • The bank's total advances surged by 15.7% YoY, amounting to Rs 12,23,154 crore as of June 30, 2024.
  • The retail loan portfolio of the bank grew by 17.1% year-on-year and 2.4% sequentially, representing 54.4% of the bank's total loan portfolio.
  • The bank's total period-end deposits increased by 15.1% YoY, reaching Rs 14,26,150 crore.
  • Its average deposits saw a 17.8% YoY rise, reaching to Rs 13,78,658 crore.

Statistics:

  • Net profit: Rs 11,059 crore
  • Net interest income (NII): Rs 19,553 crore (7.3% YoY increase)
  • Core operating profit: Rs 15,412 crore (11% YoY increase)
  • Provisions (excluding tax provisions): Rs 1,332 crore (3.1% YoY increase)
  • Net non-performing assets (NPAs) ratio: 0.43% (slight increase from 0.42% in the previous quarter)
  • Gross NPAs: Rs 28,718.6 crore (up from Rs 27,961.7 crore in the March 2024 quarter)
  • Gross NPA ratio: 2.15% (marginal decrease from 2.16% in Q4FY24)
  • Total advances: Rs 12,23,154 crore (15.7% YoY increase)
  • Retail loan portfolio: 54.4% of the bank's total loan portfolio (17.1% YoY growth)

Sources:

  • ANI: "Private Sector Bank Reports 14.6% YoY Net Profit Growth in Q1FY25" (July 28, 2022)

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