Whenever you take a home loan or car loan from the bank, the bank charges interest from you. Similarly, when you delay in making credit card payment, you still have to pay interest. But do you know that banks earn thousands of crores from these small interests. Now take ICICI Bank, the second largest private bank of the country. The bank has earned Rs 18,300 crore from interest alone in just 3 months.
ICICI Bank on Saturday presented its financial report for the July-September quarter. It contains information ranging from net profit to total income of the bank. The bank also said that its net income from interest alone has increased by 24 percent in these 3 months, which is Rs 18,308 crore.
More than Rs 10,000 crore profit
The net profit of ICICI Bank in the July-September quarter was Rs 10,261 crore. This is 36 percent more than the profit of the same quarter last year. During this period, the total operational income of the bank has increased by 31 percent to Rs 40,697 crore.
See also: Restart LIC’s lapsed policy, just 10 more days and you will get a discount of up to Rs 4000.
burden of bad debts reduced
According to RBI guidelines, banks have to show a separate fund for their bad loans in the balance sheet every quarter. This time, there has been a significant decline in the provision made by the bank for this. The bank’s provision for NPA has reduced to Rs 583 crore.
It was Rs 1,645 crore in the same quarter last year. Whereas in the April-June quarter of the financial year 2023-24 it was Rs 1,292.4 crore. The bank’s gross NPA (bad loan) has become 2.48 percent of its gross loan. Whereas the net NPA of the bank has been only 0.43 percent of its net loan.