India’s top banks expected posting 13% profits growth

HDFC eyed to lead the pack with 31% profits growth as banking sector returns to normalcy.

The banking sector is anticipated to come back to normalcy in this result season according to the analyst estimates. The leading 7 Indian banks are anticipated to increase their net profit by an average estimated 13% year-on-year (y-o-y) in March 2010 quarter. Except Bank of India (BoI), the rest of 6 banks may post a net profit increase of 22%. It is a relief for bankers, who labored to retain their growth rates steady in December 2009 quarter.

The main reason for this turnaround is the renewal of credit growth. The latest data released by the Reserve Bank of India (RBI) shows that the credit uptake went to 17% after sinking to 11% in December 2009. In the previous sector, analysts were worried about the banking sector’s capacity to boost lending. But with the recovery of credit growth all those worries are over. Also the difference between deposit and credit growth has disappeared. Now deposit growth is equal to credit growth

View the full story in Bank Bazaar.