Banks - NIM Compression Along With Improving Asset Quality Continues In Q4: CareEdge

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..CareEdge Research Report.In Q4 FY24, the Scheduled Commercial Banks reported a robust rise in advances at 20.2% YoY driven by merger and personal loans. The corporate sector too saw a gradual pickup, aided by MSMEs. Meanwhile, SCBs witnessed a 13.3% YoY deposit growth for the quarter. Deposit growth has continued to lag credit growth. Consequently, the Credit to Deposit ratio stood at 80.01% as of March 31, 2024, expanding by ~416 bps YoY.Net Interest Income grew by 10.2% (YoY) due to healthy loan growth despite a decline in net interest margin by 16 bps. Net non-performing assets reduced by 23.8% YoY. The NNPA ratio of SCBs reduced to 0.6% which is an all-time low. SCB credit cost (annualised) declined by 10 basis points (bps) YoY to 0.54% as banks have been cleaning their balance sheets.Return on assets (annualised) improved by 7 bps YoY to 1.39% owing to robust business growth, relative growth in other income (treasury and fee) and controlled provisions.SCBs were adequately capitalised. SCBs CET I Ratio came in at 14.2%, while the capital adequacy ratio came in at 16.6% in March 2024 end, compared to regulatory requirements of around 8% (capital conservation buffer and 11.5% respectively..Click on the attachment to read the full report:.IIP - India's Industrial Output Grew 5%, Beating Expectations In April: Anand Rathi.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Banks - NIM Compression Along With Improving Asset Quality Continues In Q4: CareEdge

Net Interest Income grew by 10.2% YoY due to healthy loan growth despite a decline in net interest margin by 16 bps.

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Banks - NIM Compression Along With Improving Asset Quality Continues In Q4: CareEdge

Net Interest Income grew by 10.2% YoY due to healthy loan growth despite a decline in net interest margin by 16 bps.

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