Rising provisions, treasury losses to pull down banks' quarterly profits

Weak treasury income, rising asset quality pressures and margin contraction will be the key trends witnessed by the Banking industry for the quarter ended September 30, 2013. Consequently, netprofit growth for leading private banks such as ICICI Bank, HDFC Bank and Axis Bank will see some moderation. Analysts expect leading private banks' (ICICI Bank, HDFC Bank and Axis Bank) net profit to grow by 11.2% (Axis) to 27.4% (HDFC Bank). The slower growth becomes significant given that ICICI Bank and Axis Bank posted net profit growth of 25.3 per cent and 22.1 per cent respectively in the June 2013 quarter. For HDFC Bank, the net profit grew by 30 per cent in the June 2013 quarter. The net profit growth could thus be the lowest over the past three-four quarters for these banks.

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