Net interest incomes (NII) of eighteen private sector banks showed a significant rise during the first nine-months of fiscal 2008 by 35.4% to Rs 15,911 crore as against the previous year’s comparable figure of Rs 11,755 crore.The income was also higher when compared with 21 banks from the public sector.
According to a study conducted by FE, during April-Dec 2007 NIIs of PSBs rose by 8.4% to Rs 43,121 crore from Rs 39,776 crore during the comparable period of the previous year. The study included 21 PSBs and 18 private sector banks. Among the public sector banks, the highest increase in NIIs was observed in the case of Bank of India. The bank’s NII increased from Rs 2,472 crore to Rs 3,012 crore thereby registering an increase of 38.7% during April through Dec 2007. On the other hand, interest expenditure increased by 49.3% during the same period.In Indian Bank?s case, the NII increased from Rs 1,277 crore to Rs 1,518 crore while for Bank of Maharashtra, the NII was Rs 900 crore from the preivous year’s Rs 780 crore.
The country’s largest government bank, State Bank of India, showed a rise of 14.90% to Rs 900 crore during the period under review.
Of the 21 PSBs, six banks showed a decline in NII during the period. Among the 18 private sector banks, four banks, namely, Yes Bank, Kotak Mahindra Bank , DCB and Axis Bank showed more than 50% increase in their NIIs during the April-Dec 2007. More than 30 % rise in NII was seen in the case of HDFC Bank, Centurion Bank of Punjab and IndusInd Bank. The lowest increase in NII was witnessed in the case of J&K Bank at 3.6%.