Indian banks' profits up 23.5 per cent in 2008-09

Aggregate profits of scheduled banks in the country rose 23.5 per cent to Rs52,777 crore in 2008-09 from Rs42,731 crore in 2007-08.

On the group level, however, only the State Bank of India and other nationalised banks showed an increase in profitability rate. Profitability rate of foreign banks and private banks showed a declining trend, RBI data on scheduled banks' business showed.

"At bank group level, while return on assets of `SBI and its associates' and `nationalised banks' improved, for `other scheduled commercial banks' and `foreign banks' it declined in 2008-09," RBI analysis showed.

SBI and its associates cornered the bulk of it with Rs11,896 crore profit as of March 2009, up 32 per cent from Rs9,005 crore as of March 2008.
 
Nationalised banks' profits totalled Rs22,496 crore as of March 2009, up almost 28 per cent from Rs17,587 in March 2008.
 
Foreign banks reported profits of Rs7,508 crore as of March 2009, up 13 per cent from Rs6,613 crore in March 2008.
  
Profits of other scheduled banks stood at Rs10,865 crore at the end of March 2009, up 14 per cent from Rs9,521 crore at end-March 2008.

Net non-performing assets (NPA) ratio of nationalised banks at bank group level declined in 2008-09, RBI said in a release.

The number of employees in the banking sector also increased during 2008-09 from the level in 2007-08. At bank group level, the number of employees of SBI and its associates and other scheduled commercial banks increased, while the number of employees of nationalised banks and foreign banks declined in 2008-09.