Mumbai: Union Bank of India And IDBI Bank The banks, which declared their results on Friday, reported the highest growth in Q3FY24 net profit at 60% and 57% respectively, pushing share prices to 52-week high. other lenders ICICI Bank, IDFC First Bank And Union Bank of India also reported better earnings.
Most banks saw their profits hit by the RBI’s direction to make full provisions for any investment in Alternative Investment Funds (AIFs), which have invested money in the bank’s borrower companies. However, all the banks denied that there was any kind of evergreening and claimed that the investments were safe and the provisions were only for compliance purposes. Banks are also seeing pressure on interest margins as tight liquidity increases cost of funds.
Union Bank of India’s net profit rose 59.9% to Rs 3,590 crore for the quarter ended December 2023 due to lower provisions and increase in interest income. The bank’s shares rose 7% to hit a 52-week high of Rs 145 before closing at Rs 141.56 on stock exchanges. The market capitalization of the bank crossed Rs 1 lakh crore for the first time.
IDBI Bank reported a net profit of Rs 1,458 crore for the quarter ended December 23 due to lower provisions and improvement in interest income. The LIC-controlled bank’s net profit in the same period last year was Rs 927 crore. Interest income rose 25% to Rs 6,541 crore, provisions and contingencies fell by more than half to Rs 320 crore in the December quarter from Rs 784 crore in the same quarter last fiscal.
IDBI Bank shares surged 13% to hit a 52-week high of Rs 80 and then closed at Rs 79, 13.5% higher than its previous close. The market cap of the bank has increased by more than Rs 10 thousand crore to Rs 84,987 crore.
ICICI Bank stock crossed Rs 10000 crore mark in quarterly income with net profit of Rs 10272 crore for the quarter ended December 2023, a growth of 23.6% from Rs 8,312 crore in the same quarter last year.
IDFC First Bank reported Q3FY24 net profit up 18% at Rs 716 crore due to increase in interest income.
Most banks saw their profits hit by the RBI’s direction to make full provisions for any investment in Alternative Investment Funds (AIFs), which have invested money in the bank’s borrower companies. However, all the banks denied that there was any kind of evergreening and claimed that the investments were safe and the provisions were only for compliance purposes. Banks are also seeing pressure on interest margins as tight liquidity increases cost of funds.
Union Bank of India’s net profit rose 59.9% to Rs 3,590 crore for the quarter ended December 2023 due to lower provisions and increase in interest income. The bank’s shares rose 7% to hit a 52-week high of Rs 145 before closing at Rs 141.56 on stock exchanges. The market capitalization of the bank crossed Rs 1 lakh crore for the first time.
IDBI Bank reported a net profit of Rs 1,458 crore for the quarter ended December 23 due to lower provisions and improvement in interest income. The LIC-controlled bank’s net profit in the same period last year was Rs 927 crore. Interest income rose 25% to Rs 6,541 crore, provisions and contingencies fell by more than half to Rs 320 crore in the December quarter from Rs 784 crore in the same quarter last fiscal.
IDBI Bank shares surged 13% to hit a 52-week high of Rs 80 and then closed at Rs 79, 13.5% higher than its previous close. The market cap of the bank has increased by more than Rs 10 thousand crore to Rs 84,987 crore.
ICICI Bank stock crossed Rs 10000 crore mark in quarterly income with net profit of Rs 10272 crore for the quarter ended December 2023, a growth of 23.6% from Rs 8,312 crore in the same quarter last year.
IDFC First Bank reported Q3FY24 net profit up 18% at Rs 716 crore due to increase in interest income.
