India’s scheduled commercial banks’ profits up 12.5% in Q3 FY2025

Operating expenses, treasury gains, and fee income all rose.

The pre-provisioning profit of India' s scheduled commercial banks (SCBs) grew 12.5% year-on-year (YoY) to reach Rs 0.95 lakhs crore in Q3 FY 2025, according to data compiled by CareEdge Ratings.

Growth in net interest income (NIII) and a rise in fee-based income drove profit growth.

SCBs’ cost-to-income ratio improved by 3% YoY to 46.6% in Q3 FY2025.

Net interest margin (NIM) declined, offset by gains from treasury and fee income.

SCB’s total income grew by 10% YoY to Rs 3.65 lakh crore in Q3 FY2025, slower than the 14.7% pace reported a year earlier. Growth was due to increased advances, robust MTM gains, and fee income, according to CareEdge Ratings.

Operating expenses rose by 8% YoY to Rs 0.97 lakh crore during the quarter. Employee expenses increased 8.9% YoY, whilst other operating expenses grew by 7.2% YoY.