Why in the news
December 2024 quarter results showed banks squeezed by falling low-cost deposits, thinner margins and an expected RBI rate cut, although asset quality held up.
Key facts: asset quality
| Measure | Banks |
|---|
| Net NPA above 1% | City Union, Karnataka Bank, Bandhan, South Indian Bank, DCB, Punjab and Sind Bank |
| Net NPA below 0.5% | Axis, HDFC, ICICI, Kotak Mahindra, Indian Bank, PNB |
| Gross NPA above 4% | Bandhan, J&K Bank, PNB |
| Gross NPA below 1.5% | Axis, HDFC |
- Private banks: gross NPAs ₹1.35 trillion (Sep 2024) to ₹1.39 trillion (Dec 2024).
- PSBs: ₹4.93 trillion (Dec 2023) down to ₹4.47 trillion (Dec 2024).
- RBI: raised risk weights on unsecured loans in November 2023, which curbed bad-loan growth.
Income and profit
| Group | NII | Net profit |
|---|
| Private | ₹93,416 crore to ₹1.02 trillion (8.88% YoY) | +3.79% YoY, -2.48% QoQ |
| PSBs | ₹1.02 to ₹1.07 trillion (5.44% YoY) | +46.81% YoY, -2.36% QoQ |
CASA and NIM
- CASA fell at most banks; highest ratios: Bank of Maharashtra 49.28%, Central Bank of India 49.18%, J&K Bank 48.17%.
- Highest NIM: Bandhan 6.9%, IDFC First 6.04%, IDBI 5.17%; an RBI rate cut will add pressure.
Exam angle
- Full forms: NPA, CASA, NII, NIM.