India’s banking sector achieved a significant milestone in FY23-24 with its net profit exceeding Rs. 3 lakh crore for the first time.
According to a few reports, the combined net profit of listed public and private sector banks grew by 39 percent, reaching Rs 3.1 lakh crore compared to Rs 2.2 lakh crore in FY23.
This achievement marks a notable shift in the profitability landscape, as the banking sector’s profits have now surpassed those of the traditionally dominant IT services sector.
Listed IT services firms recorded a net profit of nearly Rs 1.1 lakh crore in FY23-24, which is significantly lower than the profits generated by banks during the same period.
Despite ongoing geopolitical challenges, the Indian economy’s financial and banking sectors have shown robust performance, as highlighted in the Economic Survey 2023-24 presented by Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, in Parliament on July 22nd.
For the top 10 Indian banks by asset size, loans now constitute more than 50 percent of their total assets, providing resilience against the current rising interest rate environment.
Following are the three bank stocks that experienced net profit growth of up to 147 percent in the June quarter of FY24-25:
With a market capitalisation of Rs. 47,933.8 crore, the stock moved up by 3.4 percent on BSE to hit an intraday high at Rs. 68.9 on Friday, as against its previous closing price of Rs. 66.61.
In terms of financials, the net profit of the bank increased by 47 percent YoY from Rs. 883 crore in Q1 FY23-24 to Rs. 1,294 crore in Q1 FY24-25, while on a quarter-on-quarter basis, it grew by 6.2 percent from Rs. 1,218 crore in Q4 FY23-24.
The net interest income for Q1 FY24-25 stood at Rs. 2,799.4 crore, marking an 8.3 percent QoQ rise from Rs. 2,584.6 crore in Q4 FY23-24, and a 20 percent increase year-on-year from Rs. 2,340 crore in Q1 FY23-24.
In Q1 FY24-25, the CASA stood at the level of 49.86 percent of the Total Deposit as compared to 50.97 percent in Q1 FY23-24.
The stock has delivered positive returns of around 93.5 percent in the last one year as well as nearly 42.5 percent returns year-to-date.
Bank of Maharashtra is engaged in the business of providing banking services and its segments include treasury, corporate/wholesale banking, retail banking and other banking operations.
With a market capitalisation of Rs. 3.6 lakh crore, the shares of one of India’s leading financial services conglomerates moved up by 3.1 percent on BSE to hit an intraday high at Rs. 1,829.7 on Friday, as against its previous closing price of Rs. 1,775.3.
In terms of financials, the net profit of the bank increased by 80 percent YoY from Rs. 4,150 crore in Q1 FY23-24 to Rs. 7,448 crore in Q1 FY24-25, while on a quarter-on-quarter basis, it grew by 40 percent from Rs. 5,337 crore in Q4 FY23-24.
The standalone net interest income for Q1 FY24-25 stood at Rs. 6,842 crore, marking a 10 percent QoQ rise from Rs. 6,234 crore in Q4 FY23-24, while the net interest margin was 5.02 percent for Q1 FY24-25. The CASA ratio as of June 30, 2024, stood at 43.4 percent.
The stock has delivered negative returns of around 6.8 percent in the last one year as well as nearly 7.5 percent returns year-to-date.
Incorporated in 1985, Kotak Mahindra Bank Limited provides a wide range of banking and financial services to corporate and individual customers in India.
With a market capitalisation of Rs. 68,316.3 crore, the shares of a commercial bank and a Government of India Undertaking moved up by 4.8 percent on BSE to hit an intraday high at Rs. 58.45 on Friday, as against its previous closing price of Rs. 55.74.
In terms of financials, the net profit of the bank increased by 147 percent YoY from Rs. 223 crore in Q1 FY23-24 to Rs. 551 crore in Q1 FY24-25, while on a quarter-on-quarter basis, it grew by 4.8 percent from Rs. 526 crore in Q4 FY23-24.
The net interest income for Q1 FY24-25 stood at Rs. 2,254 crore, marking a 12.2 percent QoQ rise from Rs. 2,009 crore in Q4 FY23-24, and a 3.06 percent increase year-on-year from Rs. 2,187 crores in Q1 FY23-24.
The CASA ratio of UCO Bank stood at 37.45 percent in FY23-24, as compared to 36.78 percent in FY22-23.
The stock has delivered positive returns of around 90.4 percent in the last one year as well as nearly 36 percent returns year-to-date.
Founded in 1943, UCO Bank is a commercial bank engaged in providing a wide range of banking and financial services including Retail Banking, Corporate Banking and Treasury Operations.
Written by Shivani Singh
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