Private banks' bottom line remains healthy in Q1, bad loans inch up

Margins under pressure as cost of funds rise

Private banks’ net profit grew 26.3 per cent year-on-year (Y-o-Y) to Rs 48,982 crore in the first quarter ended June 2024 (Q1FY25) owing to healthy growth in credit and other income.

Their asset quality was normalised in the quarter with an absolute rise in gross non-performing assets (GNPAs), after the end of dispensation granted during the pandemic, according to the data compiled by BS Research Bureau for listed 18 private banks.

GNPAs in absolute terms rose 4.9 per cent Y-o-Y and 3.3 per cent sequentially to Rs 1.33 trillion at the end of June.

Net NPAs rose