Do u think Banks like DCB and Yes bank wold be really great compared to these Big banks.

Edited by vipul - 22/Jan/2007 at 5:14am

basant ji

Q3 numbers: New private banks rock





N.S. Vageesh
Strong growth in interest income, other income














The public sector banks saw their interest income grow 19% while growth in other income was a mere 5%.


Chennai Jan. 26

Some lenders are getting more out of the India growth story than others.

From the third quarter results of about 30 banks that are available on date, it is clear that New Private banks (those who started out after 1993-94) have done much better than their older counterparts in both the private sector and public sector.

To give you an idea of the changing dynamics, the profits of ICICI Bank, the largest private sector bank, are almost equal to what three of the five largest public sector banks (Canara Bank, Bank of Baroda and Bank of India) earned taken together.

At this rate, it won't be a surprise if ICICI Bank's profits overtake that of State Bank of India, the largest bank in the country in the next quarter.

Six of the new private banks registered a profit growth of 40% driven by strong loan growth as well as treasury earnings.

Comparatively, the performance of public sector banks was more modest. Eighteen public sector banks that have announced their results so far combined to generate a 15% growth in their third quarter profits.

The profits for the new private sector banks have come from strong growth in both the interest income as well as other income (that comprise fee income, forex trading profits, profit on sale of investments and other miscellaneous items).

While interest income for new private banks grew 58%, their other income grew 61%. In contrast, public sector banks saw their interest income grow 19% while growth in other income was a mere 5%.

The rapid growth in retail loans (loans for houses, automobiles), as well as borrowing by mid-level corporates has contributed to the robust growth in interest earnings especially for the new private banks.

They also gained from growth in advisory and debt placement services, international operations, cash management services, and remittance business, besides sale of investments.

With the last quarter of the fiscal underway, all banks have joined the race to mop up resources to cope with the 30% growth in loans that the economy has been witnessing.

Raising as much low cost deposits (savings and current accounts) as possible and keeping the recourse to bulk deposits (deposits of Rs 1 crore and more) to the manageable minimum hold the key to preserving profit growth in the last quarter.

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Edited by sanjay3 - 26/Jan/2007 at 1:57am

source is myris...congrats to  all Nucleus guys...