Though the banks are facing a drop down in the corporate loans, which has led to the low rise in interest income of the bank but the earnings from fees and commission, dividends from subsidiaries, trading profit and foreign exchange have dampened the effect. These earnings from fees and commissions has helped the banks to move towards the improvement in profitability for the march end.
According to the data higher dividends, subsidiaries and gains from the bank’s equity have helped the ICICI bank, with the help of this the net interest income of the bank increased by 34.7%. . During the quarter, based on the significant reserves and surplus position in foreign branches and the muted growth outlook in the near term, the bank repatriated profits from its foreign branches. IndusInd and Yes bank also reported the increase in their net interest income. IndusInd Bank’s non-interest income surged 42 per cent compared to the year-ago period. For YES Bank, the year-on-year growth in non-interest income was 17.4 per cent, while net interest income rose 12.8 per cent.