Operational Performance of The Banks And Other Financial Institutions - A Review
This article examines the operational performance of state-owned banks, private banks, and non-banking financial companies (NBFCs) for the quarter ending September 30, 2023. By analyzing data from regulatory filings, it highlights the net profit and operational metrics of leading financial institutions. The State Bank of India (SBI) reported an 8% increase in net profit to ₹14,330 crore, driven by a 12.3% rise in Net Interest Income (NII), although its Net Interest Margin (NIM) decreased slightly. SBI's credit growth and asset quality showed positive trends, with the bank optimistic about future growth. Bank of Baroda’s net profit surged by 28% to ₹4,253 crore, aided by substantial growth in operating income and recoveries from written-off accounts. Despite a slight drop in NIM, the bank's strong deposit growth and strategic adjustments are aimed at optimizing performance. Canara Bank reported a significant 43% increase in net profit to ₹3,606 crore, with improvements in net interest income and a reduction in NPAs, reflecting its robust operational performance. Indian Bank also saw a 62% increase in net profit, supported by higher net interest income and fee-based income. Overall, the study underscores the direct link between financial performance and credit flows, revealing varied but generally positive outcomes across different categories of financial institutions.
KEYWORDS: Bank, Financial, Institutions, Net Profit, Performance