Private sector banks report pressure on profits in Q3 between Q.

Private sector banks saw a slow growth of net interest income, bad loans provision and continuous margin pressure overall operating and reduced net profit in the third consecutive quarter. On the other hand, their public sector counterparts continued to report a double digit profit growth in the December quarter.

The net profit of the sample of 17 private banks increased by 5.1% annually to Rs 46,046 crore, the slowest pace in at least 12 quarters. Pre-Provision Operating Perating Profit (PPOP) rose to Rs 73,955.9 crore at a low rate of 11.5% at a low rate of 10-quarters. 12 PSU banks have increased PPOP by 13.3% and 46.8% and net profit has been Rs 70,218 crore and Rs 44,474 crore respectively. Their net profit growth was at a high -level high of six quarters, led by Punjab National Bank, with a double increase, and the State Bank of India where the net profit increased by 84%. Most PSU banks recorded a net profit of the year-by-year.

For the total samples of 29 banks, net profit increased 22.2% to Rs 90,520 crore while PPOP increased 12.4% to Rs 1.4 lakh crore. During the quarter, the banking sector continued to show pressure on the net interest margin (NIM) as the spread of interest on the loan and the payments on deposits remained tight. Out of every three banks, two-19 specific samples were reduced to NIM annually as banks were straying to attract deposits. In the last quarter, 12 banks have expanded the NIM. In the December 2024 quarter, only four private sector banks and six PSU banks in the sample have expanded their respective NIMs year-by-year NIM.

The total sample net interest income (NII) increased 7.3% to Rs 2 lakh crore, while the change rate for the third consecutive month was one issue. NII growth for private sector banks for PSU banks was more than.3..4%.