The majority of India’s banks have
posted robust profit growth in the first quarter despite a
sector-wide increase in non-performing assets.

For the fiscal quarter ended 30 June, SBI
posted net profit up 42 percent at INR23.3 billion ($482 million)
compared with INR16.4 billion in the year-ago-quarter, largely
driven by trading income; net interest margin fell sharply however
to 2.3 percent from 3 percent a year ago as it hovered up lending
market share gains.

The country’s largest private sector lenders,
ICICI and HDFC, reported net earnings up by 20.6 percent and 31
percent to INR8.8 billion and INR6.1 billion respectively, both
helped by higher trading income helping to make up for sharp falls
in retail profits.

Retail net earnings at HDFC plunged 53 percent
to INR1.44 billion while ICICI’s retail unit posted net profit down
almost a quarter at INR4.9 billion.

Central Bank of India reported net earnings up
350 percent to INR2.67 billion while Canara Bank saw net profit up
353 percent at INR5.55 billion. Bank of Baroda also exceeded
analyst forecasts with net earnings up by 85 percent at INR6.85