India's state-owned banks suffer 13.27b rupee profit drop

These banks are struggling.

Unconsolidated net profits at India's six largest banks — State Bank of India, ICICI Bank Ltd., Bank of Baroda, Punjab National Bank, Bank of India and HDFC Bank Ltd. — fell 4.60% year over year to 112.67 billion Indian rupees in the fiscal first quarter ended June 30.

According to a research note from SNL Financial, while aggregate net profits at India's top two private banks — ICICI Bank and HDFC Bank — rose 7.84 billion rupees from the same period of 2014 to 56.72 billion rupees, the country's large state-owned banks continued to struggle, collectively posting a 13.27 billion rupee year-over-year decline in net profit.

Of the four state-owned banks on the list, only State Bank of India posted an increase in net profit, closing the quarter with net profit of 36.92 billion rupees, a 10.25% increase year over year. The company's positive results were driven by a 21.58% year over year increase in noninterest income.

Here's more from SNL Financial:

The four state-owned banks posted return on average unconsolidated assets of between 0.09% and 0.72% for the quarter, while ICICI Bank posted an ROAA of 1.85% and HDFC Bank followed close behind at 1.77%.

Bank of India's nonperforming loans as a proportion of assets rose 89 basis points quarter over quarter to 4.48%, easily the highest rate among the six. Punjab National Bank, which had the highest NPL ratio in the previous quarter, improved its asset quality with a 15-basis-point drop in its NPL ratio to 4.11%.