The Hindu Business Line : Private banks `other income' slides in Q1

THE profit party seems to be coming to an end for banks that are seeing their "other income" sliding once again. Old private banks have been hit hard in the first quarter of the current fiscal.

Although net profits went up by just 13.55 per cent for a group of seven old private banks, this marks a definite turn from the 50 per cent plus growth in profits recorded by them in the previous fiscal.

Other income for this group of seven banks went down by 16 per cent to Rs 155.73 crore for the three-month period ended June 2002. In the previous fiscal, it was other income — mainly profits from sale of securities which helped these banks post impressive results. Jammu & Kashmir Bank, which normally leads the line up of old banks, saw a three-fold jump in other income from Rs 80.78 crore to Rs 257.12 crore in March 2002.

But in the first quarter of this fiscal, its other income showed a 34 per cent decline to Rs 32 crore. Federal Bank also saw a precipitous 50 per cent decline in other income to Rs 30.28 crore.

This caused a dent to its bottomline which dropped 23 per cent in the first quarter.

Send this article to Friends by E-Mail

Stories in this Section
Rupee gains; gilts decline

Kotak Mahindra to turn bank, recruit 200

Insurers putting away Janata cover

Parliament okays insurance Bill

The more unhealthy, the merrier

Ratings on HMT bonds withdrawn

Will `importing' debt instruments pay?

HDFC Bank to go mobile with Hutchison

Catholic Syrian Bank to add 15 branches

Private banks `other income' slides in Q1