Healthy outlook: Banks profit rises 33.5% to Rs 77,564 crore in Q2

High credit offtake; lower credit costs boost bottom line

Gaining from high credit offtake and lower credit costs, banks posted a healthy 33.5 per cent year-on-year (YoY) growth in net profit at Rs 77,564 crore in the second quarter ended September 2023 (Q2FY24).
 

However, sequentially, profits showed moderation with 5.4 per cent growth over the first quarter that ended June 2023 (Q1FY24) as a rise in the cost of funds began to dent interest margins and public sector lenders made higher provisions for prospective wage revisions.
 

Their Net Interest Income (NII) expanded by 17.4 per cent YoY in Q2FY24 to Rs 1.9 trillion, reflecting the benefit from repricing of