Yields declined by 53 basis points in Q3FY17 as compared to 49 basis points in Q2FY17. According to ICRA, public sector banks have already reported a profit of Rs 18,000 crore while their private sector counterparts have made a profit of Rs 6,400 crore from sale of investments during the first half of FY17.
“The incremental gains from the decline in yields during Q3 for the PSBs are expected to be over Rs10,000 crore. If these gains are booked during Q3, the cumulative treasury profits during the first nine months of FY2017 for PSBs would surpass the budgeted capital infusion of `25,000 crore announced by the government of India (GoI) for FY2017,” said Karthik Srinivasan, senior VP, ICRA.
On an aggregate basis, profits from the sale of investments accounted for 87 per cent of the profit before tax (PBT) of the PSB and private banks during H1 FY 2017. With expectations of further gain on investment portfolios, ICRA estimates the trading profits to account for 90-100 per cent of the PBT during Q3 FY2017.
Source by deccanchronicle….