Banks deliver strong performance in H1 FY25

Amid ongoing debate around inflation and interest rate cuts, the banking sector has been the talk of the town after banks posted strong earnings results in the first half of the current fiscal (H1 FY25). The aggregate profit of banks (public + private) has grown by 20% year-on-year (YoY) in H1 FY25 to touch ₹1.8 lakh crore, as per the data released by the Boston Consulting Group. The public sector banks have outperformed private lenders with a 26% YoY growth in profit as compared to 17% by the latter.

Meanwhile, the total income of the banks rose by 17% YoY to ₹12 lakh crore in H1 FY25. While net interest income grew 10% YoY to ₹4.2 lakh crore, non-interest income jumped 18% to ₹1.6 lakh crore.

The total deposits of banks grew by 12% YoY to ₹214.2 lakh crore, while net advances increased by 13% to ₹172.3 lakh crore. Segment-wise, retail advances stood at ₹59.3 lakh crore and MSME advances were ₹29.6 lakh crore.