Retail loans boost bank profits

% chg

20062007 Interest Income43,56959,74337.12 Other Income5,0397,17342.34 Net Interest Income17,17319,61514.22 Interest Expended26,39640,12852.03 Net Profit4,5936,97251.80 Prov & Con3,3632,641-21.47  Interest income of these banks increased 37.12 per cent, while other income was up by 42.3 per cent. Interest cost on borrowings and deposits went up sharply by 52.03 per cent, while provisioning declined by 21.47 per cent. Net interest income (NII) of the overall banking sector rose by 14.22 per cent to Rs 19,614.93 crore fuelled by higher interest on advances.  Both private and public sector banks posted satisfactory numbers, with private banks once again outperforming their public sector counterparts. A strong growth in net total income and other income helped private banks to beat their public sector peers.  Net profits of private banks surged by 70 per cent compared with 47 per cent bottom line growth reported by public sector banks. PSU banks recorded a combined net profit of Rs 5,213.49 crore in the Jun 2007 quarter compared with Rs 3,558.68 crore in the corresponding quarter last year. Private sector banks posted a net profit of Rs 1,758.34 crore compared with Rs 1,034.12 crore during the same period.  Total interest earned by private and public sector banks was up by 49 per cent and 33 per cent respectively. On the other hand, non-interest income went up by 68 per cent for private banks and 26 per cent for public sector banks.  Eight banks