Muted Q3FY25 Earnings Expected for Banks Amid Slower Credit Growth
2 days, 13 hours ago

Muted Q3FY25 Earnings Expected for Banks Amid Slower Credit Growth

Deccan Chronicle  

Mumbai: Banks are expected to report tepid Q3FY25 earnings sequentially on account of muted credit growth translating to slower Net Interest Income growth as well as profitability. Some banks have increased their card rates on shorter tenor deposits and would Anil Gupta, senior vice-president & co-group head of financial sector ratings, ICRA said, "The credit growth for banks for Q3FY25 is likely to be muted sequentially and this is expected to translate into slower growth in net interest income as well as net profits." "Sequential loan growth will be healthy over 4.5 per cent for IDFC Bank, reasonable for HDFC Bank, SBI, BOB, Indian Bank, Karur Vyasya Bank and RBL," said Yes Securities. HDFC Bank's average CASA deposits were at Rs 8.17 lakh crore for the December 2024 quarter, a growth of around 6 per cent over Rs 7.71 lakh crore for the December 2023 quarter, and around 1.1 per cent compared to Rs 8.08 lakh crore for the September 2024 quarter.

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