IDFC First Bank Q1 Result | Profit at Rs 474.33 crore

 

IDFC First Bank on July 30 announced its highest-ever standalone profit of Rs 474.33 crore for the quarter ended June 2022, against a loss of Rs 630 crore in corresponding period of the previous fiscal. The increase in core operating income and fall in provisions aided the profitability, with the sequential growth in profit at 38 percent.

Net interest income, the difference between interest earned and interest expended, grew by 26 percent to Rs 2,751.1 crore for the June FY23 quarter, against Rs 2,184.8 crore recorded in year-ago period, with 39 bps YoY improvement in net interest margin at 5.89 percent for the quarter, the bank said in its BSE filing. But there was 38 bps decline in net interest margin on a sequential basis.

"We have seen a steady growth of over 20 percent YoY, both on the lending side as well as the deposits side in Q1FY23. Our return on assets has nearly touched 1 percent and we expect it to rise from here," said V Vaidyanathan, Managing Director and CEO.

The bank reported provisions and contingencies for the quarter at Rs 308 crore, declining 83.55 percent year-on-year and the sequential fall in the same was 16.6 percent.

IDFC First Bank said it is well on track to meet the asset quality and credit cost guidance. Based on the improved portfolio performance indicators, the bank is confident to achieve its credit cost guidance for FY23 at around 1.5 percent on funded assets.

On the asset quality front, gross non-performing assets as a percentage of gross advances improved to 3.36 percent, down by 34 bps sequentially and net NPAs declined to 1.3 percent in Q1FY23, from 1.53 percent in Q4FY22.

Excluding legacy infrastructure loans (which will be run down in due course), the gross and net NPA would have been 2.39 percent and 0.80 percent respectively, said the bank, adding the overall restructured book reduced to 1.3 percent as on June 2022 of the funded assets, as against 1.8 percent as on March 2022.

Other income (non-interest income) increased by 1.56 percent YoY to Rs 855.67 crore for the quarter ended June 2022.

The bank said it had treasury loss of Rs 44 crore in Q1FY23 on account of increase in market yields. The bank conservatively manages its treasury positions as a result of which the treasury losses were minimal despite sharp increase in bond yields during the quarter.

Pre-provision operating profit fell by 5.13 percent YoY to Rs 943.82 crore during the quarter as operating expenses grew by 31 percent to Rs 2,663 crore during the same period.

Core operating profit (excluding trading gains) rose by 64 percent YoY to Rs 987 crore for the quarter Q1FY23, and sequentially, it grew by 18 percent, IDFC First Bank said.

The bank further said core operating income (NII + fee and other income excluding trading gains) increased by 39 percent YoY to Rs 3,650 crore in June FY23 quarter aided by strong NII and fee income growth. Sequentially, the growth was 4 percent.

Read More

ICICI Bank Q1 Results: Net profit up 50% YoY

 

India’s second biggest private sector lender ICICI Bank, on Saturday, reported that it has recorded a 50 per cent year-on-year (YoY) rise in profit after tax (PAT) at Rs 6,905 crore as against Rs 4,616 crore in the same quarter last year.

The lender, in a public release, also stated that its net interest income (NII) rose 21 per cent YoY to Rs 13,210 crore and its net interest margin (NIM) for the April-June period was at 4.92 per cent. In comparison, the bank’s NII stood at Rs 10,936 crore in the same quarter last year.

The bank’s total income during the Q1 FY23 also improved to Rs 28,336.74 crore, from Rs 24,379.27 crore in Q1 FY22. Its interest income climbed to Rs 23,671.54 crore during the same quarter in FY23 from Rs 20,383.41 crore in the year-ago period.

ICICI Bank also revealed that its gross non-performing assets (NPAs) dropped to 3.41 per cent of the gross advances at the end of Q1 FY23 from 5.15 per cent at the end of Q1 FY22.

The bank’s net NPAs or bad loans slipped to 0.70 per cent from 1.16 per cent, while its provisions for bad loans and contingencies also halved to Rs 1,143.82 crore in the April-June period of 2023, as against Rs 2,851 .69 crore in the year-ago quarter.

Provisions, excluding tax provision, plunged 60 per cent YoY to Rs 1,144 crore from Rs 2,852 crore. Provisions for Q1 FY23 included a contingency provision of Rs 1,050 crore made on a prudent basis.

Moreover, the bank also stated that its non-interest income, excluding treasury income, rose 25 per cent YoY to Rs 4,629 crore from Rs 3,706 crore. The bank also reported a treasury gain of Rs 36 crore for Q1 FY23 as against a gain of Rs 290 crore in Q1 FY22.

ICICI Bank’s gross NPA additions stood at Rs 5,825 crore. Recoveries and upgrades of NPAs, excluding write-offs and sale, was at Rs 5,443 crore as against Rs 4,693 crore in Q4 FY22.

Meanwhile, on a consolidated basis, ICICI Bank saw a 55 per cent jump in PAT at Rs 7,385 crore from Rs 4,763 crore YoY.

Read More

HDFC Bank Q1 results: Net profit jumps 19% to ₹9,196 crore; NII rises 14.5%

HDFC Bank, the country's largest private lender, on Saturday reported a 19% year-on-year (YoY) rise in its net profit for the April-June quarter at ₹9,196 crore after providing ₹2,984.1 crore for taxation.

HDFC Bank had posted a net profit of ₹7,729.64 crore in the year-ago period.

Net interest income (NII) for the June quarter grew by 14.5% to ₹19,481.4 crore from ₹17,009.0 crore for the same quarter last year. It was driven by advances growth of 22.5%, deposits growth of 19.2% and total balance sheet growth of 20.3%.

The private lender's net revenue (excluding trading and Market to Market losses) grew by 19.8% to ₹27,181.4 crore for the June quarter from ₹22,696.5 crore for the same quarter last year. 

The total net revenues i.e. net interest income plus other income) were ₹25,869.6 crore for the April-June quarter.

Core net interest margin was at 4.0% on total assets, and 4.2% based on interest earning assets. “We continued to add new liability relationships at a robust pace of 2.6 million during the quarter," the bank said in a regulatory filing.

Gross non-performing assets (NPA) were at at 1.28% of gross advances as on 30 June this year (1.06% excluding NPAs in the seasonal agricultural segment) as against 1.47% as on 30 June last year, (1.26% excluding NPAs in the seasonal agricultural segment). Net NPA were at 0.35% of net advances as on 30 June, 2022.

Pre-provision Operating Profit (PPOP) was at ₹15,367.8 crore. PPOP, excluding trading and Mark to Market losses, grew by 14.7% over the quarter ended 30 June last year.

Provisions and contingencies for the Q1FY23 were ₹3,187.7 crore (which were specific loan loss provisions) as against total provisions of ₹4,830.8 crore for Q1FY22.

Meanwhile, global brokerage BNP Paribas expected the lender's bottom-line to grow mere 13.4% ( ₹9,284.5 crore) YoY, JPMorgan pegged the expansion at a more aggressive pace of 32.4% ( ₹10,232 crore).

Domestic brokerages Motilal Oswal Financial Services, and Emkay Global Financial Services had expected PAT (profit after tax) to swell up to 20% ( ₹9,280 crore) YoY.

Read More

RBL Bank back in black as lender posts Rs 201 cr profit in Q1

 

RBL Bank's net interest income (NII) rose 6 per cent to Rs 1027.1 crore in the quarter under review as against Rs 969.5 crore in the same period last fiscal.

RBL Bank bounced back in profit as the lender posted a consolidated net profit of Rs 201 crore for the quarter ended 30 June, 2022. The bank had posted a net loss of Rs 459 crore in the year-ago period.

RBL Bank's net interest income (NII) rose 6 per cent to Rs 1027.1 crore in the quarter under review as against Rs 969.5 crore in the same period last fiscal. Its net interest margin (NIM) stood at 4.36 per cent.

The bank's interest earned rose slightly over 3 per cent to Rs 2,089 crore in Q1FY23 n comparison with Rs 2,026 crore in Q1FY22.

Its June quarter provisions and contingencies came in at Rs 253 crore as against Rs 1,384 crore in the same quarter last fiscal.

Furthermore, on the asset quality front, RBL Bank's gross NPA stood at 4.08 per cent in this quarter as against 4.4 per cent in the previous quarter, while net NPA stood at 1.16 per cent versus 1.34 per cent in the previous quarter.

As of 30th June 2022, the Bank has 502 bank branches and 1,302 business correspondent branches, of which 289 are banking outlets. RBL Finserve Limited, a wholly-owned subsidiary of the bank, accounts for 789 business correspondent branches, the lender stated.

Commenting on the performance, R Subramaniakumar, MD&CEO, RBL Bank said “We have started the new financial year with a satisfactory performance on all fronts. The Bank completed the issuance of $100 million Tier 2 Notes in this quarter improving its capital adequacy further. Our focus would be to consolidate, leverage and optimize our existing platform so as to accelerate profitable growth of the balance sheet. We will continue to focus on our key niche areas of cards and microfinance, while accelerating the diversification across more retail products”.

Read More

IndusInd Bank Q1 Results: Profit rises 64% YoY to Rs 1,603 crore, beats estimates

 

IndusInd Bank on Wednesday reported a 64.44 per cent year-on-year (YoY) rise in standalone net profit at Rs 1,603.29 crore compared with Rs 974.95 crore in the corresponding quarter last year.

The profit figure beat Rs 1,470 crore profit anticipated by anlaysts in an ET NOW poll.

Interest earned for the quarter rose 8.01 per cent YoY to Rs 8,181.77 crore from Rs 7,574.70 crore.

The private lender made provisions and contingencies worth Rs 1,250.99 crore, which was lower than Rs 1,461.62 crore in March quarter and Rs 1,779.33 crore in the year-ago quarter.

Gross non-performing assets as percentage of total advances stood at 2.35 per cent, higher than March quarter's 2.27 per cent, but lower than year-ago's 2.88 per cent.

In its business update earlier this month, the bank said its total deposits jumped 13 per cent to Rs 3,03,094 crore in June quarter compared with Rs 2,67,630 crore in the year-ago quarter. The bank's net advances were up 18 per cent at Rs 2,49,541 crore against Rs 2,10,727 crore in the previous year.

Retail deposits and deposits from small business customers amounted to Rs 1,24,105 crore as of June 30 compared with Rs 1,20,507 crore as of March 31, 2022.

The CASA ratio increased to 43.2 per cent in June quarter from 42.8 per cent in the March quarter and 42.1 per cent in the year-ago quarter, the lender said.

Read More

RBL Bank reports net profit of Rs 197.8 crore in Q4 as asset quality improves

 

Private sector lender RBL Bank on Thursday reported a net profit of Rs 197.8 crore for the fourth quarter ended March 31, 2022.

In the corresponding quarter last year, the bank posted a net profit of Rs 75.3 crore. CNBC-TV18 Polls had predicted a profit of Rs 218.1 crore for the quarter under review. 

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grew 24.9 percent YoY to Rs 1,131.4 crore against Rs 906 crore in the same period previous fiscal.

Gross NPA stood at 4.40 percent in the March quarter against 4.84 percent in the December quarter. Net NPA came at 1.34 percent against 1.95 percent quarter-on-quarter.

In monetary terms, gross NPA stood at Rs 2,728.4 crore against Rs 2,901.9 crore quarter-on-quarter (QoQ), whereas Net NPA came at Rs 806.6 crore against Rs 1,075.5 crore (QoQ).

During the quarter, the bank earned an operating profit of Rs 657 crore and for FY22, it was Rs 2,745 crore. The Provision Coverage Ratio improved 750bps sequentially to 70.4 percent against 62.9 percent as of December 31, 2021.

Commenting on the performance, Rajeev Ahuja, MD and CEO (interim), RBL Bank, said, \"This quarter has been one of stable business performance and we continued to improve in both profitability and asset quality

"We are entering the new fiscal with a relatively clean slate on asset quality, remain well capitalised and our business operating rhythm holds us in good stead to grow meaningfully in our chosen segments with improved profitability metrics,\" he added.

As of March 31, 2022, the bank has 502 bank branches and 1,418 business correspondent branches, of which 289 are banking outlets

Read More

IDBI Bank Q4 net profit rises 35%

IDBI Bank on Monday posted 35 per cent rise in net profit at Rs 691 crore for the quarter ended March 2022 due to fall in bad loan provisions as NPA came down.The bank had posted a net profit of Rs 512 crore for the same quarter of 2020-21.

Total income during January-March period of 2021-22, however, was lower at Rs 5,444.08 crore from Rs 6,894.86 crore in the year-ago period, IDBI Bank said in a regulatory filing.

The bank's core interest income during the period was down at Rs 4,599.67 crore as against Rs 5,781.48 crore a year ago. Income from other sources was also lower at Rs 844 crore from Rs 1,113 crore.

The proportion of gross bad loans or non-performing assets (NPAs) of the bank fell to 19.14 per cent of gross loans at March-end 2022 as against 22.37 per cent by March 2021.

In value terms, gross NPAs stood at Rs 34,115 crore as against Rs 36,212 crore.

Likewise, net NPAs came down to 1.27 per cent (Rs 1,856 crore) from 1.97 per cent (Rs 2,519 crore).

Thus, provisions for bad loans and contingencies for the quarter were trimmed to Rs 669.23 crore as against Rs 2,393.36 crore parked aside by the bank for March quarter of 2020-21.

Of this, provisions for bad loans stood at Rs 300.61 crore, as against Rs 1,119.65 crore

For the full year, the bank's net profit grew 79 per cent to Rs 2,439 crore from Rs 1,359 crore in 2020-21.

Total income during the year was down at Rs 22,985 crore from Rs 24,497 crore mainly on account of fall in interest income as well as those from other sources.

The bank said its gross advances stood at Rs 1,78,207 crore by March 31, 2022, registering a yearly growth of 10.07 per cent.

IDBI Bank said during March quarter of previous fiscal year, it had received interest of Rs 1,313 crore on income tax refund.

Read More

ICICI Bank Q4 profit surges 59.4% YoY, beats estimate

ICICI Bank on Saturday reported a standalone net profit of Rs 7,018.71 crore in the fourth quarter of the previous financial year, up 59.42 per cent from Rs 4,402.61 crore the same period a year ago.

Sequentially, the net profit rose 13.32 per cent from Rs 6,193.81 crore.

Analysts had estimated 45-65 per cent growth in year-on-year net profit for the private lender in January-March.

India’s second largest private bank‘s net interest income registered a 21 per cent on-year rise to Rs 12,605 crore in Jan-Mar from Rs 10,431 crore a year ago.

The net interest income is the difference between interest earned and interest expended. In the fourth quarter of the previous year, the private bank’s net interest margin was at 4 per cent compared to 3.84 per cent a year ago and 3.96 per cent in the quarter ended December 31.

The growth in net interest income falls short of Street estimates as analysts had projected a 22-27 per cent growth in net interest income (NII) while they estimate profit growth in the range of 46-65 per cent YoY.

For the previous financial year as a whole, ICICI Bank’s profit after tax grew 44 per cent on-year to Rs 23,339 crore.

The private bank reported an improvement in asset quality in the quarter gone by with ratios for both gross and net non-performing assets declining on a year-on-year as well as sequential basis.

As on March 31, the bank’s gross NPA ratio was at 3.60 per cent as against 4.13 per cent a quarter ago and 4.96 per cent a year ago.

The net NPA ratio was at 0.76 per cent as on March 31 versus 0.85 per cent on December 31 and 1.14 per cent a year ago.

As on March 31, the bank’s Basel III Capital Adequacy Ratio stood at 19.16 per cent as against 17.91 per cent a quarter ago and 19.12 per cent a year ago.

Provision coverage ratio on non-performing assets was 79.2 per cent at March 31, 2022.

“Recoveries and upgrades of NPAs, excluding write-offs and sale increased to 4,693 crore (US$ 619 million) in Q4-2022 from 4,209 crore (US$ 555 million) in Q3-2022. The gross NPAs written-off in Q4-2022 were Rs 2,644 crore (US$ 349 million),” the bank said in an exchange filing.

As on March 31, ICICI Bank’s total advances registered a growth of 17 per cent year-on-year to Rs 859,020 crore. Sequentially, the

growth in domestic advances was 6 per cent.

For the period under review, ICICI Bank’s retail loan portfolio excluding rural loans grew 20 per cent on-year and 6 per cent sequentially, comprising 52.8 per cent of the total loan portfolio as on March 31.

The business banking portfolio grew by 43 per cent year-on-year and 10 per cent sequentially as on March 31, the bank informed exchanges.

The small and medium enterprises business, which comprises borrowers with a turnover of less than Rs 250 crore, grew 34 per cent on-year and 11 per cent quarter-on-quarter.

The SME business, comprising borrowers with a turnover of less than Rs 250 crore (US$ 33 million), grew by 34% year-on-year and 11% sequentially at March 31, 2022.

Growth in the domestic wholesale banking portfolio was 10 per cent year-on-year at March 31, 2022.

As on March 31, ICICI Bank’s total deposits grew 14 per cent year-on-year to Rs 1,064,572 crore. The sequential growth in deposits was 5 per cent.

Average current account savings account deposits increased 23 per cent on-year in January-March.

Total term deposits increased by 9 per cent year-on-year to Rs 546,135 crore (US$ 72.1 billion) at March 31, 2022.

For the quarter under review, ICICI Bank’s provisions excluding provision for tax declined by a large 63 per cent on-year to Rs 1,069

crore from Rs 2,883 crore the same time a year ago.

The provisions for the fourth quarter of the previous financial year included contingency provision of Rs 1,025 crore made on a

prudent basis, the bank informed exchanges.

“The bank continues to carry Covid-19 related provision of Rs 6,425 crore (US$ 848 million) at March 31, 2022 as contingency provisions at March 31, 2022," the bank said.

“Currently, while the number of new Covid-19 cases have reduced significantly and the Government of India has withdrawn most of the Covid-19 related restrictions, the future trajectory of the pandemic may have an impact on the results of the Bank and the Group.”

In the last quarter of 2021-22 (Apr-Mar), ICICI Bank’s profit before tax registered a growth of 63 per cent year-on-year to Rs 9,224

crore from Rs 5,657 crore the same time a year ago.

The bank’s board has recommended a dividend of Rs 5 per share and the record/book closure dates will be announced in due course, according to the exchange filing.

Read More

Bandhan Bank Q4 update: Total advances up 16%, deposits rise 24%

 

Private sector lender Bandhan Bank on Tuesday said its loans and advances grew 16 per cent year-on-year (YoY) to Rs 1,01,359 crore at the end of January-March quarter of financial year 2021-22.

 

Sequentially, loans and advances rose 15 per cent from Rs 87,998 crore as of December 31, 2021.

 

Total deposits grew 24 per cent YoY and 14 per cent quarter-on-quarter (QoQ) to Rs 96,331 crore, while current account and saving account (CASA) deposits rose 18 per cent YoY and 4 per cent QoQ to Rs 40,072 crore.

 

However, CASA ratio declined to 41.6 per cent from 43.4 per cent a year ago and 45.6 per cent at the end of preceding December quarter.

 

The share of retail to total deposits stood at 77 per cent as against 79 per cent a year ago and 85 per cent a quarter ago.

 

Bandhan Bank said its collection efficiency was at about 96 per cent during March 2022, while liquidity coverage ratio (LCR) was at about 129 per cent as of March 31, 2022.

 

The bank had reported a 35.7 per cent YoY increase in its net profit at Rs 859 crore for October-December quarter, while its net interest income (NII) grew 2.6 per cent to Rs 2,124.7 crore.

Read More

HDFC Bank Q4 net profit jumps 23% YoY

HDFC Bank, the largest private sector lender in India, on April 16 reported a 23 percent year-on-year (YoY) growth in standalone net profit at Rs 10,055.2 crore for the quarter ended March 2022 as bad loans provisions declined 29 percent, with further improvement in asset quality. A year back, the standalone profit stood at Rs 8,186.51 crore.

Net interest income (NII), the difference between interest earned and interest expended, increased 10.2 percent YoY to Rs 18,872.7 crore in Q4, with credit growth of nearly 21 percent and 16.8 percent growth in deposits YoY. "Core net interest margin was at 4 percent on total assets, and 4.2 percent based on interest-earning assets, said the bank in its BSE filing on April 16.

HDFC Bank further said its advances grew by 20.8 percent YoY to Rs 13.69 lakh crore in the fourth quarter of FY22, with growth in retail loan book at 15 percent, commercial and rural banking loans at 30.5 percent, and corporate and other wholesale loans at 17.5 percent over the corresponding period last fiscal.

The bank recorded a 16.8 percent YoY growth in deposits at Rs 15.59 lakh crore as of March 2022, with retail deposits rising 18.5 percent, and wholesale deposits scaling 10 percent on-year.

The share of Current Account Savings Accounts (CASA) deposits stood at Rs 7.51 lakh crore as of March 2022, a growth of around 22 percent YoY, while the ratio of CASA deposits increased to 48 percent in the March 2022 quarter, compared to 46.1 percent in the corresponding period last fiscal, the bank said.

Provisions and contingencies fell sharply to Rs 3,312.4 crore at the end of the March 2022 quarter, down 29.4 percent compared to the year-ago period, but the same increased 10.6 percent on a sequential basis.

Total provisions for March 2022 quarter included contingent provisions of approximately Rs 1,000 crore, said the bank, adding the floating provisions were Rs 1,451 crore and contingent provisions at Rs 9,685 crore as of March 2022.

Asset quality improved further with the gross non-performing assets (as a percentage of gross advances) falling 9 bps QoQ to 1.17 percent and net NPAs (as a percentage of net advances) declining 5 bps sequentially to 0.32 percent at the end of the March quarter.

Non-interest income (or other income) grew by around half a percent to Rs 7,637 crore in Q4FY22 as there was a loss on sale or revaluation of investments during the quarter at Rs 40.3 crore (against income of Rs 655.1 crore in the same period last year, said the bank.

The fees and commissions segment, which contributed 74 percent to other income, grew by 12 percent to Rs 5,630.3 crore in the same period.

Pre-provision operating profit (PPoP) at Rs 16,357 crore registered a 5.3 percent YoY growth compared to the corresponding quarter of last fiscal as operating expenses increased by 10.6 percent YoY.

The bank said its total capital adequacy ratio (CAR) stood at 18.9 percent as of March 2022, up from 18.8 percent as of the same period last year, with Tier-I CAR at 17.9 percent increasing by 30 bps YoY.

During the quarter ended March 2022, the bank purchased loans aggregating Rs 8,117 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC).

For the full financial year 2021-22, the bank reported a profit of Rs 36,961.3 crore, a growth of 18.8 percent over the previous year, and net interest income at Rs 72,009.6 crore - up 11 percent during the same period.

On April 4 this year, the board of directors approved the merger of HDFC with HDFC Bank. The combined entity in terms of market capitalisation would be the third-largest in India, which is subject to several requisite approvals, including that from the Reserve Bank of India, Competition Commission of India, National Housing Bank, and Insurance Regulatory and Development Authority of India. HDFC shareholders will get 42 equity shares of HDFC Bank for every 25 shares held by them.

The private sector lender added 563 branches during the March quarter, taking the network to 6,342 units as of the end of FY22.

Read More

Kotak Mahindra Bank Q3 Results: Profit rises 15% YoY

 

Kotak Mahindra Bank Friday reported a 14.94 per cent year-on-year (YoY) rise in standalone net profit at Rs 2,131 crore compared with Rs 1,854 crore in the corresponding quarter last year.

Meanwhile, consolidated PAT for the bank was up 31 per cent YoY at Rs 3,403 crore from Rs 2,602 crore in the year-ago quarter.

Net interest income (NII) for the quarter rose 11.81 per cent YoY to Rs 4,334 crore from Rs 3,876 crore in the same quarter last year. Net interest margin (NIM) for Q3FY22 came in at 4.62 per cent.

The private lender said it saw 21 lakh net customer additions during the quarter under review against 8 lakh in the year-ago quarter. Customers as at December 31 stood at 3.07 crore, the bank said in a BSE filing.

Gross NPA fell to Rs 6,983 crore from Rs 7,126 crore in the year-ago quarter and Rs 7,658 crore in the September quarter. Gross NPA ratio came in at 2.71 per cent, down from 3.27 per cent in the same quarter last year and 3.19 per cent at the of September quarter.

Kotak Bank said Covid-related provisions stood at Rs 1,000 crore as of December 31. The bank has standard restructured fund-based outstanding of Rs 1,364 core or 0.54 per cent of advances as at December 31, 2021.

Capital adequacy ratio, including unaudited profits, came in at 23.3 per cent in the recently concluded quarter and Tier I ratio was 22.4 per cent.

Read More

RBL Bank Q3 Results: Lender reports 6% rise in net profit on growth in NII

 

RBL Bank on Thursday reported a 6 per cent rise in net profit led by growth in net interest income (NII) despite a rise in expenses as the bank increased its branch presence during the quarter.

Net profit rose to Rs 156 crore in the quarter ended December 2021 from Rs 147 crore a year earlier mainly due to a 11 per cent growth in NII to Rs 1,010 crore from Rs 908 crore a year earlier.

Total operating expenses rose 46 per cent to Rs 1,000 crore in December 2021 from Rs 683 crore a year earlier reflecting the increase in operation, technology, people and compliance costs as the bank added 90 branches between September 2021 and January 2022 to take total branches beyond 500.

A 16 per cent rise in wholesale loans made up for the 6 per cent fall in retail loans as the bank consciously went slow on micro finance and small business loans due to the uncertainty caused by the rise in Covid infections during the quarter.

CEO Rajeev Ahuja said he expects retail loans to pick up next fiscal in line with the economic recovery and as the bank uses its expanded presence to ramp up loans including in micro finance.

The bank's advances increased 3 per cent year on year to Rs 58,141 crore. Retail loans make up 53 per cent of the bank's loan book and Ahuja expects it to increase to more than 60 per cent in the next three years.

Read More

Federal Bank Q3 results: Net profit rises by 29%

 

Private sector lender Federal Bank reported a 29 per cent rise in net profit at Rs 522 crore for the December quarter as against Rs 404 crore in the year-ago period owing to a fall in provisions by nearly half.

Operating profit fell 4.4 per cent at Rs 914 crore against Rs 956 crore.

Net interest margin however improved 7 basis points sequentially to 3.27 per cent while net interest income rose 7 per cent at Rs 1539 crore in the quarter under review against Rs 1437 crore in the year-ago period.

The lender's gross non-performing assets stood at 3.06 per cent at the end of December, compared with 2.71 per cent a year back. Gross NPA was 3.24 per cent at the end of September 2021 quarter. Net NPA was at 1.05 per cent as against 1.12 per cent three months back and 0.6 per cent a year back.

Provision was lower at Rs 214 crore for the December quarter compared with Rs 414 crore in the year ago period. The provision coverage ratio fell to 79.62 per cent against 86.32 per cent a year earlier.The bank's advances grew by 12% year-on-year to Rs 1.41 lakh crore.

Read More

ICICI Bank Q3 Results: Profit rises 25% YoY

Private lender ICICI Bank on Saturday reported a 25 per cent year-on-year (YoY) rise in standalone net profit at Rs 6,194 crore for the December quarter compared with a profit of Rs 4,940 crore in the corresponding quarter last year.The bank reported a 23 per cent YoY jump in net interest income (NII) at Rs 12,236 crore from Rs 9,912 crore in the same quarter last year.

Net interest margin (NIM) for the quarter came in at 3.96 per cent compared with 4 per cent in the September quarter and 3.67 per cent in the year-ago quarter.Provisions (excluding provision for tax) for the quarter fell 27 per cent YoY to Rs 2,007 crore from Rs 2,742 crore in the same period last year, the bank said in a filing to BSE. Provision coverage ratio, meanwhile, stood at 79.9 per cent as of December 31, 2021.

Net NPA ratio declined to 0.85 per cent from 0.99 per cent in the preceding quarter, the lowest since March 31, 2014.The consolidated profit after tax for the bank rose 19 per cent YoY to Rs 6,536 crore from Rs 5,498 crore in the same quarter last year.

The bank said its total period-end deposits crossed Rs 10 lakh crore mark, with total deposits growing 16 per cent YoY to Rs 10,17,467 crore. Average CASA ratio was 45 per cent in the recently concluded quarter.

ICICI Bank's non-interest income, excluding treasury income, rose 25 per cent YoY to Rs 4,899 crore from Rs 3,921 crore. Fee income rose 19 per cent YoY to Rs 4,291 crore from Rs 3,601 crore YoY.

Fees from retail, business banking and SME customers constituted about 76 per cent of total fees in the December quarter, the bank said in the filing.

Treasury income was Rs 88 crore compared with Rs 766 crore (US$ 103 million) in the year-ago quarter. The treasury income of last year included gain of Rs 329 crore from sale of shares of ICICI Securities.

"Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 4,209 crore in Q3. The gross NPAs written off in Q3 were Rs 4,088 crore. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines was Rs 9,684 crore," the bank said.

Read More

Bandhan Bank Q3 Results: Net profit jumps 35.7% YoY

Bandhan Bank on January 21 posted a net profit of Rs 859 crore for the third quarter of financial year 2021-22, which marked a 35.7 percent year-on-year (YoY) jump as compared to Rs 633 crore profit logged in the same quarter last fiscal.

Net interest income (NII) for the quarter ending December 2021 grew by 2.6 percent to Rs 2,124.7 crore, as against Rs 2,071.7 crore in the year-ago period.Non-interest income surged by 26.7 percent to Rs 712.3 crore as compared to Rs 562.3 crore in the corresponding quarter of the previous year.

Operating profit increased by 1.4 percent YoY to Rs 1,950.1 crore. Net interest margin (annualised) for Q3 FY22 stood at 7.8 percent as against 7.6 percent in September 2021 quarter.

Commenting on the financial performance, Bandhan Bank MD and CEO Chandra Shekhar Ghosh said, “We have seen all round recovery during the quarter with improved collection and increase in disbursement."

Total deposits of the lender increased by 18.7 percent YoY to Rs 84,499.8 crore as of December 31, 2021, the bank said.

The lender also noted that its gross non-performing assets (NPAs), as of December 31, 2021, is at Rs 9,441.6 crore (10.81 percent) as against Rs 8763.6 crore (10.82 percent) as on September 30, 2021.

Net NPAs as of December 31, 2021, stood at Rs 2,413.1 crore (3.01 percent) as against Rs 2,265.8 crore (3.04 percent) as of September 30, 2021.

"Q4 historically has been the best quarter for the bank and we are positive of our business going forward. With Group loan share in total advances reduced to 52 percent, the bank is on track to achieve the diversification strategy which it had laid down for FY25," Ghosh added.

Bandhan Bank, in a press release, also noted that its outlets as of December 31, 2021, stood at 5,626. The network consists of 1,176 branches, 4,450 banking units as against 1,107 branches, and 4,090 banking units as of December 31, 2020.

The total number of ATMs stood at 489 as of December 31, 2021, against 487 as of December 31, 2020. During the quarter, the number of employees of the bank has gone up from 52,976 to 55,341, it added.

Read More

IDBI Bank Q3 net profit surges 53%

IDBI Bank reported a 53% rise in net profit mainly due to a decrease in cost of funds, which helped boost both net interest income and net interest margin (NIM).Net profit rose to Rs.578 crore in the quarter, from Rs.378 crore a year ago.

Net interest income (NII), or the difference between the interest earned on loans and that paid on deposits, increased 31% to Rs.2,383 crore mainly as the bank's cost of funds fell 60 basis points year on year to 3.79% in December 2021.

The fall in its cost of funds also helped IDBI Bank improve its NIM, which is the difference between the yield a bank earns on loans and that it pays for deposits. NIM improved 101 bps to 3.88% from 2.87% a year ago.

The rise in NII and NIM masked a tepid loan growth of 5% led by a 13% year on year growth in mid corporate loans and a 5% growth in retail, agriculture and micro enterprises. Total deposits fell 1% as the bank moved away from high-cost bulk deposits.

CEO Rakesh Sharma acknowledged that the bank's loan growth has been slow but said he is confident of growing above 10% led by retail and mid corporate loans in the next fiscal. A drop in provisions also contributed to the bank's net profit. Provisions dropped 11% to ₹1,189 crore from ₹1,332 crore a year ago as the bank continued to improve recoveries.

Read More

CSB Bank Q3 Results: Net profit up 25% QoQ

 

CSB Bank, in its quarterly earnings report on Friday, reported a total income of Rs 579.81 crore for the quarter ended December 31, 2021, as against Rs 555.64 crore a quarter previously. The bank also reported a net profit of Rs 148.25 crore, a quarter-on-quarter increase of 25% from Rs 118.57 crore.

According to the report, the company had gross non-performing assets (NPAs) worth Rs 388.95 crore, a 33.72 QoQ decrease, and net NPAs of Rs 199.74 crore, down a significant 46 percent QoQ.

The company further reported earnings per share of Rs 8.55 lakh (at a face value of Rs 10 per share), which was an increase of 25 percent QoQ, and paid-up equity capital of Rs 173.54 crore, the same as the previous quarter.

Read More

YES Bank Q3 profit rises 76.8% YoY

Yes Bank on Saturday reported a 76.8% year on year rise in net profit at Rs.266.4 crore in October-December quarter of FY22 as compared to Rs.150.7 crore profit during the same quarter last year. The private lender's profit rose 18.2 per cent on quarter on quarter basis from Rs.225 crore, while operating profit was up 7.7 per cent on Q-o-Q basis and down 66.4 per cent on YoY basis.

YES Bank's total net income in Q3 FY22 dipped by 31.5 per cent to Rs.2,498 crore in October-December 2021 quarter as against Rs.3,648 crore recorded in the corresponding period of previous year.

Yes Bank's net interest income, however, declined 31 per cent YoY to Rs.1,764 crore in Q3 FY22 compared to Rs.2,560 crore recorded in the corresponding quarter of 2020-21, while it grew at 16.6 per cent on Q-o-Q basis, Yes Bank said in a stock exchange filing. 

The bank's other or non-interest income in the said quarter stood at Rs.734 crore vs ₹1,087 crore recorded in the third quarter of 2020-21.

The bank's GNPA ratio further improved to 14.7 per cent, vs 15.0 per cent last quarter, led by lower slippages at Rs.978 crore vs Rs.1,783 crore in Q2 FY22.

Yes Bank's resolution momentum has continued with ₹610 crore of cash recoveries and Rs.573 crore of upgrades during Q3 FY22. The balance sheet also stayed above Rs.3 lakh crore for first time since Sept 2019, up 6 per cent Q-o-Q.

Read More

HDFC Bank Q3 profit rises 18%

 

Leading private sector lender HDFC Bank on January 15 clocked standalone net profit of Rs 10,342 crore for the December 2021 quarter, up 18 percent year-on-year backed by decline in bad loan provisions.The profit in corresponding quarter last fiscal was at Rs 8,758.29 crore.

Net interest income, the difference between interest earned and interest expended, climbed 13 percent to Rs 18,444 crore in Q3FY22, with net interest margin at 4.1 percent for the quarter, and healthy credit growth of 16.4 percent.Profit and net interest income grew by 17 percent and 4.3 percent on sequential basis in Q3.

HDFC Bank on January 4 had said advances for the quarter at Rs 12.6 lakh crore grew by 16.4 percent compared to year-ago period and the sequential growth was 5.1 percent. "Retail loan growth was 13.5 percent YoY (up 4.5 percent QoQ) and corporate loan book growth at 7.5 percent YoY (up 4.5 percent QoQ)."

The bank further said it registered 13.8 percent YoY growth (up 2.8 percent QoQ) in deposits at Rs 14.46 lakh crore with CASA deposits rising 24.6 percent YoY (up 3.5 percent QoQ) to Rs 6.81 lakh crore in December 2021 quarter. "CASA ratio stood at around 47 percent as of December 31, 2021, as compared to 43 percent as of December 2020 and 46.8 percent as of September 2021."

Provisions and contingencies for the quarter at Rs 2,994 crore declined 12.3 percent year-on-year, and dropped 23.7 percent over previous quarter, which comprised a specific loan loss provisions of Rs 1,820.6 crore, and general and other provisions of Rs 1,173.4 crore.

"Total provisions for the December quarter included contingent provisions of approximately Rs 900 crore," said HDFC Bank.The total credit cost ratio was at 0.94 percent for the quarter, said the bank. This was against 1.3 percent reported for September 2021 quarter and 1.25 percent for December 2020 quarter.

Asset quality improved further as the gross non-performing assets (GNPAs) as a percentage of gross advances fell 9 bps sequentially to 1.26 percent and net NPAs declined 3 bps QoQ to 0.37 percent at the end of December 2021.

"Total provisions (comprising specific, floating, contingent and general provisions) were 172 percent of the gross non-performing loans as on December 31, 2021," said HDFC Bank.The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,636 crore as of December 2021.

Pre-provision operating profit grew by 10.5 percent year-on-year to Rs 16,776 crore and other income (non-interest income) increased by 9.94 percent to Rs 8,183.55 crore for the December 2021 quarter.

The growth in other income was driven by forex & derivatives revenue, and recoveries & dividend, while fees & commissions, which contribute 62 percent to non-interest income, saw moderate growth YoY.

"Fees & commissions income at Rs 5,075.1 crore for the quarter grew by 2 percent, foreign exchange & derivatives revenue at Rs 949.5 crore increased by 68.8 percent, and miscellaneous income including recoveries & dividend at Rs 1,112.5 crore rose by 39.56 crore," said the company in its BSE filing.

Read More

City Union Bank Q2 results: Net profit rises 15%

City Union Bank on Friday reported a 15 per cent rise in its net profit to Rs 182 crore for the September 2021 quarter, as provisioning for bad loans and contingencies fell. The bank had posted a net profit of Rs 158 crore in the corresponding period last year.

Its total income during July-September 2021 fell slightly to Rs 1,224.94 crore, compared with Rs 1,230.27 crore in the year-ago period, City Union Bank said in a regulatory filing.

The lender's interest income, however, rose one per cent to Rs 478 crore, from Rs 475 crore a year ago.The bank said its deposits grew 12 per cent to Rs 46,316 crore during the September 2021 quarter, compared with Rs 41,021 crore a year ago.

Advances were up by 7 per cent at Rs 38,012 crore during the quarter under review. The total business jumped 10 per cent to Rs 84,328 crore as of September 30, 2021.Net interest margin stood at 4.03 per cent and the return on assets at 1.32 per cent.

On the assets quality front, there was deterioration with the gross non-performing assets (NPAs) moving up to 5.58 per cent of the gross advances at the end of September 30, 2021, against 3.44 per cent a year ago.

In terms of value, the gross NPAs stood at Rs 2,119 crore, against Rs 1,220 crore a year ago.

Net NPAs, or bad loans, were at 3.48 per cent (Rs 1,294 crore), compared with 1.81 per cent (Rs 631 crore) a year ago.

The bank's capital adequacy as of September 30, 2021, as per RBI guidelines on Basel-III norms is 19.24 per cent and tier-1 capital adequacy was at 18.18 per cent, well above the regulatory requirements.

Read More