Credit growth, quality assets likely to spur bank profits in Q4 FY24

Profits may grow 9.6%, net interest income 8.7% in March quarter

With high credit growth and healthy asset quality, listed commercial banks are expected to report steady growth in earnings during the fourth quarter ended March 2024 (Q4 FY24).

Profits are expected to grow at 9.6 per cent year-on-year (Y-o-Y) and net interest income (NII) by 8.7 per cent in Q4 FY24, according to Bloomberg analysts’ estimates.

According to Motilal Oswal Securities, while bank credit growth has been robust, deposit growth has also gathered pace. This is on the back of aggressive mobilisation by banks and competitive rates. As a result, the gap between credit and deposits narrowed to around 3.4