Bank of Maharashtra Q2 Net profit surges 72% on year

 

State-owned Bank of Maharashtra (BoM) has announced a profit of 71.8 per cent at Rs 919 crore year on year (Y-o-Y) at the end of the July-September quarter (Q2) for the financial year 2023-24 (FY24) in its consolidated results. The announcement came through a regulatory filing on BSE on Monday.

Last year, the bank recorded a profit of Rs 4,317 crore for the same period. The total income for this quarter also went up 32.8 per cent Y-o-Y at Rs 5,735 crore from Rs 4,317 crore.

Compared to the previous quarter that ended in March, profits rose by 4.2 per cent from Rs 882 crore, and income rose by 5.86 per cent from Rs 5,417 crore.

Net Interest Income (NII) went up 28.9 per cent to Rs 2,432 crore from Rs1,887 crore, Y-o-Y.

Gross non-performing assets (NPA) are down to 2.19 per cent in Q2FY24. Last year, during the same period, it was 3.40 per cent. Net NPA declined to 0.23 per cent at the end of the latest quarter compared to Q2FY23, when it stood at 0.68 per cent. In Q1FY24, gross NPA stood at 2.28 per cent and net NPA at 0.24 per cent.

Operating costs have gone up by 27 per cent compared to the same period last year at Rs 1,179 crore from Rs 927 crore. Quarter-on-quarter, it was a marginal growth of 6.67 per cent from Rs 1,105 crore.

Read More

State Bank of India(SBI) Q2 Net profit rises 9.13%

State Bank of India (SBI), India's largest lender, on Saturday reported a 9.13% growth in consolidated net profit for the September quarter to ₹16,099.58 crore. It had reported a consolidated net profit of ₹14,752 crore in the year-ago period and ₹18,356 crore in the June quarter.

On a standalone basis, it posted a net profit of ₹14,330.02 crore as against ₹13,264.52 crore in the year-ago period. The net interest income (NII) grew at 12.3% year-on-year.

The bank reported a total income of over ₹1.12 lakh crore for the quarter under review, up from ₹88,733 crore in the year-ago period.

From an asset quality perspective, its gross non-performing assets ratio was at 2.55% as of September 30, an improvement from the 3.52% in the year-ago period and the 2.76% in the first quarter of the current fiscal.

Its overall capital adequacy stood at 14.28% as of September 30.

SBI Chairman Dinesh Khara said, "The outlook for domestic activity is brightening even as corporation de-leverage and post strong bottomlines. The growth is expected to gain momentum for the rest of the year. On external front, CAD is modest with sufficient forex buffers insulating the economy."

Kaitav Shah, Hd-BFSI, Anand Rathi Instl Eq said, "The numbers broadly seem to be in line with what has been the expectation. We just have to look at what kind of growth SBI did. I think they generally deliver in line with what the credit growth for the system has been? NII growth at ₹39,500 crore is very much in line with our expectation. We will just await what is happening at the pre-provisioning operating profit level to get a better view on or a sense on what the numbers have been. We were any which ways expecting a benign asset quality for this quarter."

Read More

Bank of Baroda(BoB) Q2 profit rises 28% YoY

 

Bank of Baroda on Saturday reported a 28.4% year-on-year (YoY) rise in net profit for the quarter ended September 2023 to Rs 4,253 crore. Total income from operations increased by 39% on year to Rs 32,033 crore.

Net interest income (NII), the difference between interest earned and interest expended, grew by 6.5% YoY to Rs 10,831 crore.

The non-interest income grew more than two-fold on year to Rs 4,171 crore during the quarter.

Provisions and contingencies for the quarter increased to Rs 2,161 crore from Rs 1,627 crore a year ago.

The gross non-performing assets ratio as of September end stood at 3.32%, compared to 5.31% a year ago and 3.51% a quarter ago. The net non-performing assets ratio as of September end stood at 0.76%, compared to 1.16% a year ago and 0.78% a quarter ago.

The capital adequacy ratio under Basel-III norms was 15.30% as of September end, compared to 15.25% a year ago.

The global net interest margin (NIM) for the quarter stood at 3.07%, the state-owned lender said in a release.

Operating profit for the quarter increased by 33% on year to Rs 8,020 crore. The cost-to-income ratio reduced to 46.54% from 49.74% a year ago.

The bank’s balance sheet remained robust, with a provision coverage ratio of 93.16%. The credit cost remained below 1% at 0.92% during the quarter.

The global advances saw a strong 17% YoY growth during the quarter, led by robust retail loan book growth. Organic retail advances grew by 22%, led by higher focus on auto loan, home loan, personal loan, mortgage loan, and education loan.

The lender achieved a total business of Rs 22.74 lakh crore, registering a growth of 16% YoY.

Read More

Bank of India(BoI) Q2 Net profit rises 52%

 

Bank of India on November 4 reported a 52 percent rise in its net profit to Rs 1,458.43 crore in the second quarter of the current financial year. In the year-ago period, the state-owned lender reported Rs 960 crore net profit.

This was on the back of sharp improvement in the asset quality and increase in margins of the lender.

On a sequential basis, net profit has fallen 6 percent.

In the reporting quarter, the asset quality of the state-owned lender improved sharply with gross non-performing assets (NPA) ratio stood at 5.84 percent, as compared to 8.51 percent in a similar period last year.

Similarly, net NPA ratio fell to 1.54 percent as on September 30, 2023, as against 1.92 percent in a year ago period, and 1.65 percent in a quarter ago period.

In absolute terms, gross NPA of the bank stood at Rs 31,719 crore as on September 30, 2023, as compared to Rs 34,582 crore as on June 30, 2023, and Rs 42,014 crore as on September 30, 2022.

Whereas, net NPA stood at Rs 7,978 in July-September quarter, as against Rs 8,119 crore in a quarter ago period, and Rs 8,836 crore in a year ago period.

In reporting quarter, Provision Coverage Ratio (PCR) improved by 62 basis points (bps) on-year, as per release. PCR of the state-owned bank stood at 89.58 percent as on September 30, 2023, as against 88.96 percent in a year ago period.

Net interest Income

The net interest income (NII) of the bank in July-September quarter rose 13 percent on-year to Rs 5,740 crore, as compared to Rs 5,083 crore in a year ago period.

However, on a quarterly basis, NII of the bank fell 3 percent.

The interest income of the bank in the reporting quarter was Rs 14,971 crore, and interest expanded stood at Rs 9,231 crore.

Net interest margins of Bank of India by 4 bps in reporting quarter to 3.08 percent. In a year ago period, it stood at 3.04 percent, and 3.03 percent in a quarter ago period.

Deposits and advances

Global Business increased by 9.25 percent on-year from Rs 11,41,356 crore in September 2022 to Rs 12,46,879 crore in September 2023.

Global Deposits increased by 8.68 percent on-year from Rs 6.5 lakh crore in September 2022 to Rs 7.03 crore in September 2023.

Global Advances increased by 10 percent on-year from Rs 4.94 lakh crore in September 2022 to Rs 5.43 lakh crore in September 2023.

Domestic Deposits increased by 8.61 percent on-year from Rs 5.51 lakh crore in September 2022 to Rs 5.99 lakh crore in September 2023.

Domestic Advances increased by 9.80 percent on-year from Rs 4.12 lakh crore in September 2022 to Rs 4.53 lakh crore in September 2023.

Read More

UCO Bank Q2 Net profit falls 20.3%

Public sector lender UCO Bank on November 3 reported a 20.3 percent fall in net profit at Rs 401.67 crore for the July-September quarter of the financial year 2023-24.

The Kolkata-headquartered bank reported a net profit of Rs Rs 504.52 crore in the year-ago period.

The bank's gross non-performing assets (GNPAs) declined to 4.14 percent from 4.48 percent of the year-ago period. Its net non-performing assets (NNPAs) fell to 1.11 percent from 1.18 percent.

Bank's total business grew by 10.56 percent to Rs.417145 crore on y-o-y, wherein Gross Advances up by 17.99 percent to Rs. 167734 crore on y-o-y & total deposits grew by 6.07 percent to Rs.249411 crore on y-o-y. UCO Bank's, Capital Adequacy Ratio (CRAR) improved to 16.83 percent as on September 30, 2023, as compared to 14.02 percent on September 2022, with Tier 1 ratio of 14.19 percent as of Sept 2023 as against 11.25 percent as on Sept 2022 registered an improvement of 281 bps and 294 bps in CRAR and Tier 1 respectively.

The bank has a network of 3213 domestic branches and 2 overseas branches in Hong Kong and Singapore & 1 Representative office in Iran. Out of the total branches, Bank has 61.78 percent i.e. 1985 branches in rural & semi-urban areas. The bank has 2472 ATMs and 8747 BC (Business Correspondents) Points making the total number of 14435 touch points as of September 30, 2023.

Read More

Canara Bank Q2 Net profit zooms 43% YoY

 

Public sector lender Canara Bank on October 26 reported a net profit of Rs 3,606 crore for the July-September quarter of FY24, up 43 percent from the year-ago period.

The lender's net interest income (NII) came in at Rs 8,903 crore, 19 percent higher from the the corresponding quarter of the previous fiscal.

The bank's gross non-performing asset (NPA) stood at 4.76 percent, down from 6.37 percent in year-ago period. Net NPA for the quarter improved to 1.41 percent from 2.19 percent in the year-ago period.

Deposit of the bank stood at Rs 11.43 lakh crore growing by 8.22 percent and domestic advances stood at Rs 8.78 lakh crore growing by 12.59 percent.

The lender's RAM credit grew by 13.63 percent to Rs 5.16 lakh crore and constitutes 56 percent of the total advances. Retail credit grew by 10.56 percent with housing loan growth at 12.32 percent and education Loan grew by 14.68 percent whereas vehicle loan grew by 9.29 percent.

The bank's retail portfolio increased to Rs 1.48 lakh crore and grew by 10.56 percent. Housing loan portfolio increased by 12.32 percent to Rs 88,564 crore and advances to agriculture grew by 20.54 percent to Rs 2.36 lakh crore.

Read More

Union Bank Of India Q2 Profit Jumps 90%

 

Union Bank of India's profit jumped 90% in the July–September quarter on account of a significant drawdown in provisions.

The public sector lender reported a net profit of Rs 3,511 crore in the second quarter of fiscal 2024 as compared with Rs 1,847 crore over the same period last year, according to an exchange filing on Friday. Analysts polled by Bloomberg pegged its standalone net profit at Rs 3,139 crore.

Sequentially, the bottom line rose 8.5%.

The net interest income increased 10% to Rs 9,126 crore from Rs 8,305 crore in the year-ago period. As on Sept. 30, the net interest margin stood at 3.18%, up 5 basis points from the quarter ended June.

The bank's domestic advances grew 9.2% year-on-year to Rs 8.2 lakh crore during the quarter, propped up by a strong pickup in education and gold loans. However, the absolute share of the two segments in the loan mix was low.

Domestic deposits increased 7.4% to Rs 11.2 lakh crore in the second quarter. As of Sept. 30, the current account and savings account ratio stood at 34.6%.

The bank met the priority sector lending requirements as prescribed by the Reserve Bank of India, under which all banks have to lend 40% of the adjusted net bank credit towards agriculture, micro enterprises and other economically disadvantaged sections.

The share of loans disbursed to women by the bank was exceedingly well above the 5% benchmark set by the RBI under its PSL norms, according to the investor presentation.

The bank's operating expenses rose nearly 12% to Rs 5,600 crore during the reporting period.

Union Bank of India's asset quality improved, with the gross non-performing assets ratio at 6.38% from 7.34% in the previous quarter. The net NPA ratio fell 28 bps to 1.3%, from 1.58% in the first quarter.

While fresh slippages during the quarter amounted to Rs 2,527 crore, accounts worth Rs 984 crore were upgraded. Loans worth Rs 6,018 crore were written off during the period.

Of the total provisions, the amount set aside for bad loans was Rs 1,691 crore during the quarter, nearly 40% lower than what was provided in the same quarter of the previous year.

The bank's provision coverage ratio stood at 92.03% as of Sept. 30. Its capital adequacy ratio was at 16.69%, with CET-1 ratio at 13.05% and tier-II at 2.12%. Out of Rs 10,100 crore approved by the board to be raised this financial year, the bank has already raised Rs 5,000 crore through equity.

Read More

Punjab National Bank(PNB) Q2 Net profit zooms 327%

 

Public sector lender Punjab National Bank (PNB) reported a 327 per cent year-on-year (YoY) rise in net profit at Rs 1,756 crore for the September quarter compared with Rs 411.27 crore in the corresponding quarter of the last fiscal. Net interest income (NII), the difference between the interest earned from lending activities and the interest paid, rose to Rs 9923 crore in the September quarter of the current fiscal.

Operating profit of PNB climbed 11.66% to Rs 6216.43 crore in Q2 against Rs 5567.21 crore in the September quarter of the last fiscal. 

Asset quality of the lender improved in the last quarter. Gross NPAs fell to Rs 65,563.12 crore in Q2 against Rs 87,034.79 crore in the September 2022 quarter. Gross NPA ratio slipped to 6.96% in Q2 against 10.48% in the corresponding quarter of the previous fiscal. 

Debt to equity ratio of PNB fell to Rs 0.76 in Q2 against 0.91 in the September 2022 quarter. 

Net NPA ratio slipped to 1.47% in Q2 against 3.80% in the September 2022 quarter. Net NPAs declined to Rs 13,114.12 crore in Q2 compared to Rs 29,348.16 crore in the September 2022 quarter.

Read More

Indian Bank Q2 Net profit rises 61%

 

Public sector lender Indian Bank has reported a 61 per cent rise in net profit during the second quarter of the financial year FY24 to Rs 2,068.49 crore, compared to Rs 1,287.39 crore during the same period last financial year. The improved net profit is mainly due to a 23 per cent increase in net interest income (NII) for the quarter.

The total income of the Chennai-based bank also rose by 25 per cent during the quarter, reaching Rs 15,929.4 crore compared to Rs 12,714.2 crore in the same quarter of the FY23. "Indian Bank is strategically expanding its business with a major focus on retail, agriculture, and MSME sectors, targeting 10-12 per cent credit growth in FY24. Adopting digital banking as our core focus, we are committed to fostering financial growth and prosperity for individuals and businesses across diverse sectors of society. Through constant innovation, we aim to simplify processes, enabling quick and convenient banking," the bank said in a statement on Thursday. The bank's NII, the difference between interest earned and interest expended, stood at Rs 5,741 crore, compared to Rs 4,684 crore during the second quarter of the previous financial year.

The bank's gross non-performing assets (NPA) for the quarter under review stood at 4.97 per cent of gross advances, a decrease from 7.30 per cent in the corresponding period of the previous year. Similarly, the net NPA improved from 1.5 per cent at the end of September 2022 to 0.60 per cent as of September this year.

The provision coverage ratio also improved to 95.64 per cent from 91.08 per cent at the end of September 2022. The bank's return on average assets increased to 1.06 per cent in the second quarter of FY24, up from 0.71 per cent in the second quarter of FY23. Its return on equity also rose to 19.90 per cent from 13.83 per cent in September 2022.

The total business of the bank recorded year-on-year growth of 10 per cent, reaching Rs 1,13,3091 crore in September 2023, from Rs 1,02,6801 crore in September 2022. Its advances increased by 12 per cent year-on-year to Rs 4,92,288 crore in September 2023 from Rs 4,37,941 crore in September 2022.

Read More

Bank of Baroda(BoB) App Scam: Has Sent Shockwaves To Indian Banking System - All You Need To Know

Bank of Baroda has been in the eye of a storm after a potential fraud in the process of signing up customers for its Internet banking app. The employees at certain Bank of Baroda branches allegedly linked customers' bank accounts with unrelated mobile numbers and enrolled them on the "Bob World" app, Al Jazeera reported in July. 

What exactly happened?

This mobile app, similar to other banking apps, offers customers various digital banking services, including loan access, savings, investment options, bill payments, and even booking buses and hotels. According to the report, bank employees resorted to linking bank accounts without associated mobile numbers to the contact details of various personnel, including staff, sanitation workers, and security personnel to meet demanding sign-up targets for the digital app.

After the initial registration, these employees would then deregister the bank accounts from the app and reuse the same mobile numbers to link a different set of bank accounts. To oversee this process, each branch had a designated nodal officer, as reported by the publication. While Bank of Baroda initially denied these allegations, it later initiated an internal audit in response to the accusations.

But How Did It All Begin? 

The first sign of illegal on boarding in Bank of Baroda's BOB World App was exposed by AI Jazeera in July 2023.

As per the Al Jazeera report, it was known that the bank's employees were given the task of onboarding customers on the BOB World mobile app when it was launched in September 2021. The task was extensive, and employees struggled to onboard people while they feared getting poor performance reviews from their regional offices. Desperate to succeed in the task at hand, a Bank of Baroda employee situated in Bhopal revealed to AI Jazeera that he and his colleagues learned of a workaround from peers in other branches. This employee revealed that they would fetch out the list of bank accounts which were not linked with mobile numbers, and then the employees would link these accounts to any mobile numbers they could gather such as bank staffers, sanitation and security workers and their relatives. The goal of doing so was to generate the one-time password (OTP) which is required to join the application and sign up these accounts. The next step by these employees was to deregister these customers from the app and reuse the same mobile numbers to repeat the process all over again.

Even a nodal officer reportedly from the regional office in Bhopal joined the practice by giving his and his wife's phone numbers to link with the accounts. AI Jazeera cited an email which pointed out the scale of impact on bank accounts. For instance, in the Bhopal zone, the news channel found out that close to 1,300 mobile numbers were tied to anywhere from 30 to 100 bank accounts, putting nearly 62,000 bank accounts at risk. This will be on average 47 bank accounts linked to a single mobile number. As per the policy of Bank of Baroda policy, one mobile number can be linked to at least eight bank accounts, however, one mobile number cannot be linked to multiple mobile banking apps. Bank of Baroda had denied the findings in the AI Jazeera report. But when RBI stepped into the same matter, Bank of Baroda carried out its investigation, finding many employees carrying this fraudulent act.

What did the RBI say?

Now, the bank app has been banned by the RBI from onboarding new customers. The RBI has now mandated that the Bank of Baroda, the seventh largest in India by market cap, sign in new customers to the BoB World app after it rectifies the identified issues and strengthens the relevant processes to the regulator's satisfaction, as per ET.

Bank of Baroda takes action:

In response to this, the Bank of Baroda has taken action by suspending certain employees and launching an investigation to establish accountability. “Some employees have been suspended in Bhopal, Baroda and Rajasthan and a probe has been initiated. So far the suspensions are only in the smaller towns outside the metros,” a person familiar with the process told ET.

Read More

Central Bank of India Q2 results: Net profit jumps 90%

 

Public sector lender Central Bank of India on October 20, reported a net profit of Rs 605.4 crore for the July–September quarter of this fiscal year.

The bank's gross non-performing asset (GNPA) also improved to 4.62 percent from 4.95 percent Q1FY24. The lender's net NPA stood at 1.64 percent, improving from 1.75 percent in the last quarter.

Central Bank of India's total business grew by 11.51 percent to Rs 602284 crore (Q2FY24), vis-à-vis Rs 540130 (Q2FY23). However, total Deposits were up by 8.21 percent to Rs 371252 crore (Q2FY24), vis-à-vis Rs 343081 (Q2FY23).

Notably, the Provision Coverage Ratio (PCR) has improved to 92.54 (Q2FY24) from 89.20 (Q2FY23), registering an improvement of 334 bps.

The Operating Profit improved by 13.47 percent to Rs 3369 crore (as against, Rs 2969 crore Q2FY23), on half yearly basis, though it dipped marginally by 12.47 percent to Rs 1530 crore (as against, Rs 1748 crore Q2FY23), on quarterly basis, due to increasing in non-staff operating expenses.

Net Interest Income (NII) increased by 10.23 percent to Rs 3028 crore as against Rs 2747 crore Q2FY23. The same is increased by 26.90 percent to Rs 6204 crore (as against, Rs 4889 crore Q2FY23), on half yearly basis.

Net Interest Margin (NIM) improved to 3.53 percent as against 3.12 percent Q2FY23, 41 bps, on half yearly basis, though reduced marginally to 3.43 percent as against 3.44 percent Q2FY23, quarterly basis, due to increase in interest pay-out on deposits. Central Bank of India has a Bank network of 4489 branches with 65.22 percent (2928 branches) in rural & semi-urban areas, 4044 ATMs and 10962 BC Points with total 19495 Touch Points as on September ’23.

Read More

MD, CEO and Head of Banks in India (Updated)

We are sharing with you the List of Important Office Holders, Bank CEO and MD’s Name in India. It will help you in upcoming IBPS,SSC and other competitive exams.

Nationalised Banks

--> State Bank of India (SBI)–Shri Dinesh kumar Khara (Chairman)
--> Bank of Baroda (BoB)–Shri Sanjiv Chadha (MD & CEO)

--> Bank of India (BoI)–Shri Rajneesh Karnatak (MD & CEO)
--> Bank of Maharashtra (BoM)–Shri A S Rajeev (MD & CEO)
--> Canara Bank– Shri K Satyanarayana Raju (MD & CEO)
--> Central Bank of India–Shri Matam Venkata Rao (MD & CEO)
--> Indian Bank–Shri Shantilal Jain (MD & CEO)
--> India Post Payment Bank (IPPB)- Shri  J Venkatramu (MD & CEO)
--> Indian Overseas Bank (IOB)–Shri Ajay Kumar Srivastava (MD & CEO)
--> Punjab and Sind Bank–Shri Swarup Kumar Saha (MD & CEO)
--> Punjab National Bank (PNB)–Shri Atul kumar Goel (MD & CEO)
--> UCO Bank–Shri Soma Sankara Prasad (MD & CEO)
--> Union Bank of India–Ms. A. Manimekhalai (MD & CEO)

Private Banks

-->  Axis Bank–Shri Amitabh Chaudhry (MD & CEO)
-->  AU Small Finance Bank –Shri Sanjay Agarwal (MD & CEO)
-->  Bandhan Bank–Shri Chandra Shekhar Ghosh (MD & CEO)
--> Catholic Syrian Bank–Shri C. V. R. Rajendran (MD & CEO)
--> City Union Bank–Dr. N. Kamakodi (MD & CEO)
--> Development Credit Bank (DCB)–Shri Murali M. Natrajan (MD & CEO)
--> Dhanlaxmi Bank– Shri J K Shivan (MD & CEO)
--> Equitas Small Finance Bank - Shri Vasudevan P. N. (MD & CEO)
--> Federal Bank–Shri Shyam Srinivasan (MD & CEO)
--> Fincare Small Finance Bank–Shri Rajeev Yadav (MD & CEO)
--> HDFC Bank–Shri Sashidhar Jagdishan (MD & CEO)
--> ICICI Bank– Shri Sandeep Bakhshi (MD & CEO)
--> IDBI Bank Ltd–Shri Rakesh Sharma (MD & CEO)
--> IDFC First Bank–Shri V Vaidyanathan (MD & CEO)
--> IndusInd Bank–Shri Sumant Kathpalia (MD & CEO)
--> Jammu & Kashmir Bank–Shri Baldev Prakash (MD & CEO)
--> Karnataka Bank–Shri Mahabaleshwara M. S. (MD & CEO)
--> Karur Vysya Bank–Shri B Ramesh Babu (MD & CEO)
--> Kotak Mahindra Bank–Shri Ashok Vaswani (MD & CEO)
--> Lakshmi Vilas Bank–Shri Subramanian Sundar (MD & CEO)
--> Nainital Bank–Shri Dinesh Pant (Chairman and CEO)
--> RBL Bank–Shri R Subramaniakumar (MD & CEO)
--> South Indian Bank–Shri Murali Ramakrishnan (MD & CEO)

--> Suryoday Small Finance Bank-- Shri R. Baskar Babu (MD & CEO)
--> Tamilnad Mercantile Bank– Shri Thiru K.V. Rama Moorthy (MD & CEO)
--> Ujjivan Small Finance Bank–Shri Ittira Davis (MD & CEO)
--> Yes Bank –Shri Prashant Kumar (MD & CEO)

Last Updated on Oct, 2023

Read More

Good news for Bankers! 5-day work week soon

 

The bank employees’ unions have constantly raised their demand for five-day working in the bank, stating to increase the number of week offs.  After repeated petitions for almost a year, now the time is probably near when banks will work only for five days a week. Apart from Sunday, there was a constant demand from the Indian Banking Association to keep it closed on Saturday as well, which has now been approved.

According to the report of The Hindu, the demand pressed by bank employees’ unions for five-day working and to declare all Saturdays as a bank holiday has been accepted by India’s Bank Association in the meeting which was held on July 28.

Now, the bank employees’ Unions body has forwarded the petition to the Finance Ministry for further approval.

If the petition would be approved by the Finance Minister then banks will be working on five days a week, and employees will get all Saturdays off. Besides, the daily working hours of all banks could be extended by 45 minutes, according to the Business Line report.

Decision awaiting

Bankers are hopeful that their proposal will soon get approval from the Finance Department. “Based on some informal conversations with the ministry, it appears that the government may not have any problem in accepting this request of the bankers’ union,” it said.

At present all banks in India work on the first, third and fifth Saturdays of the month. There are holidays on the second and fourth Saturdays. However, as of 2015, banks operate six days a week, including all Saturdays of the month.

Read More

Punjab & Sind Bank Q1 Net profit falls 25%

Public sector lender Punjab & Sind Bank (PSB) on August 5 reported a 25.4 percent fall in net profit to Rs 152.67 crore for the April-June quarter of FY24, as against Rs 204.7 crore last year.During the quarter, the lender earned an interest income of Rs 2,316 crore compared to Rs 1,800 crore in the year-ago period, as per a regulatory filing.

The bank's gross non-performing assets (GNPAs) declined to 6.80 percent from 11.34 percent in the June quarter of the previous fiscal. Net naon-performing assets (NNPAs) fell to 1.95 percent from 2.56 percent.The bank's net interest margin (NIM) in the quarter increased to 2.63 percent from 2.53 percent a year ago.Total income increased to Rs 2,494 crore in the first quarter of 2023-24 against Rs 1,915 crore a year ago.

Explaining the reason for the decline in profit, Punjab & Sind Bank's Managing Director Swarup Kumar Saha said the bank has made a Rs 57 crore provision towards the wage revision under negotiation and Rs 450 crore in fresh slippages, including a mid-corporate of Rs 92 crore in the quarter.

With regard to business growth, Saha said credit growth is expected to be 13-14 percent, while deposit mobilisation would witness a growth of 8-10 percent during the current fiscal.

Read More

Bank of Baroda(BoB) Q1 Net profit jumps 88%

Public sector lender Bank of Baroda on August 5 reported 87.7 percent rise in net profit to Rs 4,070 crore for the April-June FY24 quarter from Rs 2,168 crore last year.

Bank of Baroda’s net profit was seen rising 86.5 percent YoY to Rs 4044.3 crore. The lender exceeded market expectations.

The gross non-performing assets of the bank declined to 3.51 percent as compared with 6.26 percent last year.

The Gross NPA of the Bank reduced by 33.8 percent YoY to Rs 34,832 crore in Q1FY24 and Gross NPA Ratio improved to 3.51 percent in Q1FY24 from 6.26 percent in Q1FY23.

The Net NPA Ratio of the BOB stands at a record low of 0.78 percent in Q1FY24 as compared with 1.58 percent in Q1FY23.

However, Slippage ratio declined to 1.05 percent for Q1FY24 as against 1.71 percent in Q1FY23.

Domestic CASA deposits registered a growth of 5.5 percent YoY and stood at Rs 4,23,600 crore. Auto Loan increases by 22.1 percent, Home Loan 18.4 percent, Personal Loans by 82.9 percent, Mortgage Loan 15.8 percent and Education Loan 20.8 percent on a YoY basis.

However, the Agriculture loan portfolio grew by 15.1 percent YoY to Rs 1,27,583 crore and the total Gold loan portfolio including retail and agri. stands at Rs 40,652 crore, registering a growth of 32.1 percent on a YoY basis.

Bank of Baroda has domestic presence spanning 8,205 branches and 10,459 ATMs and Cash Recyclers supported by self-service channels and an international presence with a network of 93 overseas offices spanning 17 countries.

Read More

State Bank of India(SBI) Q1 results Net profit all-time high, jumps 178%

State Bank of India (SBI) unveiled its Q1 results today reporting net profit in Q1FY24 zooms 178% to ₹16,884 crore from ₹6,068 crore, YoY. The largest state-run lender in the country net interest income in the quarter ended June 2023 rose 24.5% to ₹38,904 crore from ₹31,195.9 crore, YoY.

The SBI share price commenced at ₹594.90 each, nearly 1% higher on the BSE in anticipation of the Q1 results on Friday. However, it later fell to ₹585.95 at 1:30pm, showing a decrease from the previous day's closing price of ₹590.60.

SBI's net interest margin is 3.47%

SBI's net interest margin, a crucial measure of profitability, climbed to 3.47% from 3.23% compared to the previous year.

The bank witnessed a notable 13.9% rise in its gross loans compared to the previous year, coupled with a 12% increase in deposits, driven particularly by term deposits which offer more favourable returns.

Provisions and contingencies experienced a significant decline of 43% year-on-year, amounting to ₹2,501 crore. This figure marked a decrease from the ₹3,316 crore reported in the January-March period.

SBI's gross non-performing assets (NPA) ratio, a critical measure of asset quality, dropped to 2.76% from the previous quarter's 2.78% and a substantial reduction from 3.91% recorded a year ago. In contrast, the net NPA ratio saw a marginal increase to 0.71% from 0.67% in the preceding three months.

In the preceding quarter, ending March 2023, SBI reported a net profit of ₹16,694.5 crore, indicating an 83% rise from the ₹9,113.5 crore reported during the same period in the previous fiscal year. The net interest income (NII) for Q4FY23 increased by 29.5% YoY, reaching ₹40,392 crore from ₹31,197 crore. The domestic net interest margin (NIM) for Q4FY23 showed a YoY growth of 44 basis points to reach 3.84%. Furthermore, SBI's operating profit in the quarter surged by 24.87% YoY to ₹24,621 crore.

Read More

Indian Overseas Bank(IOB) Q1 net profit up by 28%

 

Public sector lender Indian Overseas Bank on August 2 reported a 27.50 percent rise in net profit at Rs 500 crore in the first quarter of the financial year 2023-24, up from Rs 392 crore in the year-ago period.

Net interest income jump 22 percent and stood at Rs 5,424 crore for the quarter ended June 2023 compared to Rs 4,435 crore last year.

The lender's total deposits increased to Rs. 2.64 lakh crores up from Rs. 2.60 lakh crores last year. The current account and savings account (CASA) of the bank improved to 44.14 percent compared to 43.07 percent last year. Total CASA from Rs 1.12 lakh crore to Rs 1.16 lakh crore.

The bank's gross non-performing assets (GNPA) declined to 7.13 percent from 9.16 percent in the same quarter of the previous fiscal.

Net non-performing assets (NNPAs) of fell to 1.44 percent from 2.43 percent last year.

The provision coverage ratio improved to 94.03 percent against 91 .86 percent.

Read More

DA Increase of Bankers from August,2023

Dearness Allowance Increase of Bankers from August,2023 : 

Increase of  36 slab i.e. 2.52%.

Total slab: @ 632 i.e. 44.24% w.e.f. August, 2023.

Read More

No public sector bank privatisation till 2024 general election: Top Government Official

The much-awaited privatisation of public sector banks (PSB) is unlikely to happen before the 2024 general elections, according to a senior government official. "Nothing is going to happen before the 2024 general elections. We don't have legislation yet for it — without that privatisation is not possible," said the official, requesting anonymity.

Amendments would be required to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, for privatisation, the official said, adding that these Acts, which formed the basis for nationalisation of banks in two phases, need to be changed for privatisation.

India currently has 12 public sector banks: Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of India, UCO Bank, and Union Bank of India.

Bank privatisation has been on the anvil for successive governments but the plan hasn’t progressed due to stiff opposition from trade unions.

Finance Minister Nirmala Sitharaman, while presenting Budget 2021-22, had announced the privatisation of Public Sector Banks (PSBs) as part of the disinvestment drive to garner Rs 1.75 lakh crore.

At that point, the FM had said that other than IDBI Bank, the government proposes to take up the privatisation of two public sector banks and one general insurance company in 2021-22. But, this announcement wasn’t followed up.

"Every government takes the decisions at the right time. So, I don't think that anything is going to happen before the general elections," the finance ministry official quoted earlier added.

According to the official, the IDBI bank case is different because it is not a public sector bank but a ‘private sector’ bank in which the government holds a stake.

United Bank of India; Allahabad Bank became part of Indian Bank; Canara Bank subsumed Syndicate Bank; and Andhra Bank and Corporation Bank merged with Union Bank of India. Earlier, SBI had merged five of its associate lenders with itself, while Vijaya Bank and Dena Bank were merged with Bank of Baroda.

“If the government had gone for privatisation earlier it would not have got good value, as banks were in bad shape. Now, after lots of injection of capital, banks' balance sheets are in good shape,” said Naresh Malhotra, a former State Bank of India senior official.

"If the government does it this time, it will get a good valuation. They can do it. Also, they should wait a little more, so that the situation stabilises a little more. The balance sheets can be better. If you ask me, the government shouldn’t be in banking,” Malhotra added.

Read More

UCO Bank Q1 Net profit grows 81%

 

Public sector lender UCO Bank on July 28 reported a 81 percent jump in net profit at Rs 223.48 crore in June quarter of the current financial year 2023-2024. The Kolkata-headquartered bank reported a net profit of Rs 123.61 crore in the year-ago period.

The bank's gross non-performing assets (GNPAs) declined to 4.48 percent from 7.42 percent in the June quarter of the previous fiscal. The net non-performing assets (NNPAs) fell to 1.18 percent from 2.49 percent.

Net Interest Income (NII) increased by 21.78 percent to Rs.2008.80 crore in Q1FY24 as against Rs.1649.54 crore for Q1FY23.

Net Interest Margin (NIM) improved to 2.86 percent as on 30.06.2023 as against 2.74 percent as on 30.06.2022, registering a growth of 12 bps.

Return on Assets (ROA) improved to 0.28 percent, registering an improvement of 11 bps from 30.06.2022.

Total Business grew by 16.06 percent on Y-o-Y basis to Rs. 413972 crore as on 30.06.2023 as against Rs.356677 crore as on 30.06.2022.

Total Deposits up by 10.81 percent on Y-o-Y basis to Rs. 249694 crore as on 30.06.2023 as against Rs.225328 crore as on 30.06.2022.

Capital Adequacy Ratio (CRAR) improved to 16.85 percent as on 30.06.2023 as compared to 14.13 percent on 30.06.2022, with Tier 1 ratio of 14.16 percent as on 30.06.2023 as against 11.29 percent as on 30.06.2022, registered an improvement of 272 bps and 287 bps in CRAR and Tier 1 respectively.

Bank said that network of 3209 domestic branches and 2 overseas branches each at Hongkong and Singapore Centre.

Read More