India private banks post strong Q1 profit growth as credit demand accelerates
HDB•Q1 earnings strengthen as loan growth accelerates
Tekedia Capital analysis flagged strong Q1 earnings at India’s top private banks as loan demand accelerated, lifting profitability despite net interest margin pressure.
- HDFC Bank net profit rose 5% to INR 190.6 billion; loans grew 15.4%; provisions fell 78% to INR 30.6 billion.
- ICICI Bank net profit climbed nearly 16% to INR 148 billion; domestic loans rose 19.6%; net interest margin edged up to 4.36%.
- Axis Bank net profit increased 22.5% to INR 71.14 billion; net interest margin slipped to 3.46%; provisions dropped 44% to INR 22.22 billion.
Outlook stayed constructive as improving asset quality lowered credit costs, partly offset by weaker treasury income from higher bond yields.
