1、Banking Sector Roundup Q1 FY261Copyright 2024 by Boston Consulting Group.All rights reserved.PSU(12 banks)PrivateNew(10 banks)PrivateOld(10 banks)Glossary:Classification of Indian banks used in this documentSmall Finance(5 banks)Analysis across the deck has been made based on 37 Banks:12 PSBs,10 Pri

2、vate-New,10 Private-Old Banks and 5 Small Finance Banks2Copyright 2024 by Boston Consulting Group.All rights reserved.Q1FY26 results:Banking industry snapshot1.Retail loans are gross advances and include home loans,auto loans,personal loans,and other retail loans.2.MSME are gross advances and includ

3、es SME,LAP,Business Banking,and CV/CE loansSource:Capitaline,Financial Results,Investor Presentation;BCG analysis230.7L Crore12%YoYTotal Deposits 33.8L Crore17%YoYMSME2 Advances65.3L Crore12%YoYRetail Advances1185.7L Crore11%YoYTotal Net Advances 6.5L Crore11%YoYTotal Income2.1L Crore2%YoYNet Intere

4、st Income1.0L Crore44%YoYNon-Interest Income0.9L Crore3%YoYPATBusinessKey RatiosProfitability2.2%47 bps YoYGNPA(%)1.3%10 bps YoYROA36.1%169 bps YoYCASA Ratio3.1%27 bps YoYNIM(%)46.4%183 bps YoYCost-Income3Copyright 2024 by Boston Consulting Group.All rights reserved.Macro TrendsSummary Snapshot(I/II

5、)Banks vs NBFCs Economic growth:GDP Growth for Q1 FY26 at 6.5%.FY26 GDP projected to grow between 6.26.7%Economic landscape exhibits mixed trendsoThe IIP rebounded,led by the manufacturing and mining sector indices,along with increased capital goods productionoSteel consumption inched up slightly as

6、 flat-steel demand rose amid moderating prices.Cement production increased despite rising prices in May25 Profitability:Banking sector profitability grew moderately by 3%YoY due to pressure on NIMs;NIM declined by 27 bps in Q1FY26 at 3.1%oOn a YoY basis,private banks profit declined by 3%whereas PSB