HDFC Bank Q1 Results: Net profit jumps 30%, maintains healthy asset quality

HDFC Bank on July 17 reported a net profit of Rs 11,951 crore for the April-June quarter FY24, a jump from Rs 9,196 crore in the quarter ended June 30, 2022. The net profit slightly exceeded the market expectations. At least four brokerages had predicted a net profit of Rs 11,581 crores whereas HDFC Bank reported a net profit of Rs 11,951 crore.

The country's largest private sector bank's net interest income (NII) grew by 21.1 percent to Rs 23,599 crore from Rs 19,481 crore for the quarter ended June 30, 2022. Core net interest margin was at 4.1 percent on total assets, and 4.3 percent based on interest earning assets.

The lender's gross non-performing assets (GNPA) ratio stood at 1.17 percent, improving from 1.28 percent in the corresponding period a year ago.

Similarly, its net NPA (NNPA) stood at 0.30 percent from 0.35 percent last year. The lender's net profit jumped from Rs 9,196 crores in the corresponding quarter last year to Rs 11,951 crores in Q1FY24.

On the deposit side, total deposit of the bank stood at Rs 19.13 lakh crores, jumping by 19.2 percent on a year-on-year basis.

Current account and savings account (CASA) grew by 10.7 percent where total current account deposits stood at Rs 2.52 lakh crores and savings account deposits stood at Rs 5.6 lakh crores. Whereas time deposits of the bank stood at Rs 11 lakh crores, improving by 26.4 percent.

Total advances of the bank grew by 15.8 percent on a year-on-year basis and stood at Rs 16.15 lakh crores.

Domestic retail loans grew by 20 percent, commercial and rural banking loans grew by 29.1 percent and corporate and other wholesale loans grew by 11.2 percent.

The lender's treasury segment reported a revenue of Rs 10,537 crores, jumping from Rs 7,379 crores in the corresponding quarter last year.

Retail banking, which formed the bank's major revenue, stood at Rs 42,939 crores compared to Rs 31,685 crores last year. Whereas the lender's wholesale banking stood at Rs 28,332 crores, jumping from Rs 18,642 crores.

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Central Bank of India Q1 results: Net profit jumps

 

Public sector lender Central Bank of India on July 17 reported a net profit of Rs 418.4 crore for the April-June 2023 quarter, a jump from Rs 235 crore in the corresponding period last year.

The bank's gross non-performing asset (GNPA) also improved to 4.95 percent from 8.44 percent last year. The lender's net NPA stood at 1.75 percent, improving from 1.77 percent in the corresponding quarter last year. This is the on back of improvements in asset quality and increase in net interest margins of the bank.

The gross NPA of the bank in absolute terms fell to Rs 10,891 crore by end of June quarter, as against Rs 29,002 crore in the same quarter last year.

The net NPA, in absolute terms, stood at Rs 3,718 crore as on June 30, as compared to Rs 6,785 crore in the previous year.

The provision coverage ratio of the bank stood at 92.23 percent, which saw on improvement of 562 basis points on-year. One basis point is one hundredth of percentage point.

The net interest income (NII) grew by 48.27 percent to Rs 3,176 crore in Q1FY24 as against Rs 2,142 crore for Q1FY23, whereas, the total income (NII plus other Income) improved by 28.74 percent to Rs 8,184 crore from Rs 6,357 crore in the year-ago period.

The return on assets (ROA) improved to 0.43 percent during as against 0.27 percent in Q1FY23, and the return on equity (ROE) also improved to 1.63 percent for Q1FY24 as against 0.98 percent in the corresponding quarter of the last fiscal.

The total BASEL III Capital Adequacy Ratio improved to 14.42 percent in June 2023 as compared to 13.33 percent the same month last year. The Common Equity Tier 1 ratio came in at 12.13 percent in Q1FY24, registering an improvement of 109 bps.

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Profit of public sector banks rises 9% in June qtr(Q1FY23)

 

All the 12 public sector banks earned a cumulative profit of about Rs 15,504 crore, registering a 9.2 per cent growth annually, despite poor showing by large lenders like SBI and PNB.

During the April-June period of the previous fiscal, state-owned banks recorded a total profit of Rs 14,013 crore, according to quarterly numbers published by public sector lenders.

Of the total 12, three lenders -- State Bank of India (SBI), Punjab National Bank (PNB) and Bank of India -- reported fall in their profits ranging from 7-70 per cent.

Decline in profit by these lenders has been attributed to Mark-to-Market (MTM) losses due to hardening bond yields.

MTM losses occur when the financial assets held are valued by the market at a price lower than the purchase price.

Nine lenders have recorded profit ranging from 3-117 per cent during the first quarter of FY23. The highest percentage growth was recorded by Pune-based Bank of Maharashtra which earned a profit of Rs 452 crore against Rs 208 crore in the same quarter of the previous year.

It was followed by Bank of Baroda which recorded a 79 per cent bottom line growth at Rs 2,168 crore compared to Rs 1,209 crore a year ago.

Despite having witnesased a fall in its profit, SBI remained the highest contributor to the combined profit of banks with Rs 6,068 crore. SBI alone contributed about 40 per cent of the total profit. It was followed by Bank of Baroda with Rs 2,168 crore.

During 2021-22, the collective profit of public sector banks more than doubled to Rs 66,539 crore as against Rs 31,816 crore in the preceding year. In FY21, only two public sector banks (Central Bank and Punjab & Sind Bank) reported losses, which dragged down the collective net profit.

Many state-owned banks after a hiatus also declared dividend in the last financial year. In all, nine banks including SBI declared dividends of Rs 7,867 crore to shareholders.

There were collective losses recorded in the five straight years from 2015-16 to 2019-20.

The highest amount of net loss was registered in 2017-18 at Rs 85,370 crore, followed by Rs 66,636 crore in 2018-19; Rs 25,941 crore in 2019-20; Rs 17,993 crore in 2015-16 and Rs 11,389 crore in 2016-17.

Net Profit of PSBs

State Bank of India(SBI)- Rs. 6068 cr

Bank of Baroda(BoB) - Rs. 2168 cr

Canara Bank - Rs. 2022 cr

Union bank of India - Rs. 1558 cr

Indian Bank- Rs. 1311 cr

Bank of India(BoI) - Rs. 561 cr

Bank of Maharashtra - Rs. 452 cr

Indian Overseas Bank(IOB) - Rs. 392 cr

Punjab National Bank(PNB) - Rs. 308 cr

Central Bank of India - Rs. 235 cr

Uco Bank - Rs. 224 cr

Punjab & Sind Bank - Rs. 205 cr

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IOB declares a 20% jump in net profit in Q1

 Indian Overseas Bank (IOB), a public sector lender, announced on Saturday that its net profit for the first quarter of the current fiscal year increased by 20% to Rs.392 crore from Rs.327 crore in the same quarter of the previous year.

According to IOB, its total deposits rose by 7.04 per cent year over year to Rs. 2,60,045 crores as of June 30, 2022, from Rs. 2,42,941 crores in Q1FY22. When compared to the previous year, the bank's overall business expanded by 10.92 per cent YoY to Rs. 4,23,589 crores as of June 30th, 2022, from Rs. 3,81,885 crores in Q1FY22. Gross Advances climbed to Rs. 1,63,544 crores as of June 30, 2022, up from Rs. 1,38,944 crores the previous year, while CASA of the Bank increased to 43.07 per cent, up from 41.63 per cent. Total CASA has climbed to Rs. 1,12,012 crores on June 30, 2022, from Rs. 1,01,129 crores on June 30, 2021. Due to investments that were marked to market for a provision of Rs. 340.16 crore, the bank's operating profit for the quarter that ended on June 30, 2022, fell to Rs. 1026 crore from Rs. 1202 crore in Q1FY22.

The bank's gross non-performing assets (NPA) fell to Rs.14,769 Cr in Q1FY23 from Rs.15,952 Cr in Q1FY22, a reduction of 7.41 per cent YoY. IOB reported a total income of Rs. 5028 crore for the quarter that ended on June 30, 2022, a 2.46 per cent YoY reduction from Rs. 5155 crore for the quarter that ended on June 30, 2021.  IOB recorded a net NPA of Rs. 3,698 Cr. in Q1FY23 vs Rs. 3,998 Cr in Q1FY22, a loss of 7.50% YoY. The bank reported a net interest margin of Rs. 2.53 Cr in Q1FY23 versus Rs. 2.34 Cr. in the same quarter of the previous year.

IOB reported a gross NPA ratio of 9.03% compared to 11.48% in the same quarter of the last year and the bank reported a net NPA ratio of 2.43% compared to 3.15% in the same quarter of the last year. The bank reported a cost-to-income ratio of 56.27% compared to 53.57% in Q1FY22. IOB reported a return on assets (ROA) of 0.52% compared to 0.47% in Q1FY22 and the return on equity (ROE) of the bank comes down to 12.63% in Q1FY23 which was 14.57% in Q1FY22.

Interest income for the bank totalled Rs. 4435 crores for the quarter that ended on June 30, 2022, compared to Rs. 4,063 crores in the same quarter of the last year. Due to a rise in other income, the bank's non-interest income decreased from Rs. 1,092 crore for the quarter ended June 30, 2021 to Rs. 593 crore for the quarter ended June 30, 2022. The bank's total expenditure grew from Rs. 3,953 crores for the quarter ended June 30, 2021, to Rs. 4002 crores for Q1FY23. 

The bank's Gross NPA in the first quarter of FY23 was Rs. 14,769 crores, or 9.03 per cent, compared to Rs. 15,952 crores, or 11.48 per cent, in the first quarter of FY22. In comparison to 91.56% in Q1FY22, IOB's Provision Coverage Ratio increased to 91.86 per cent in Q1FY23.

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State Bank of India (SBI) Q1 results: Net profit dips 6.7%

Beating the street estimates by a huge margins, the State Bank of India (SBI) has reported year-on-year (YoY) dip of 6.7 per cent in net profit to Rs.6,068 crore in Q1FY23 against Rs.6.504 core in Q1FY22. India's largest commercial bank has reported rise in its net interest income (NII) from Rs.27,638 crore in Q1FY22 to ₹31,196 crore in Q1FY23, logging near 12.87 per cent rise on YoY basis. SBI shared these q1 earnings while announcing its Q1FY23 results on Saturday.

While announcing the Q1 results for the financial year 2022-23, SBI has reported Operating Profit for Q1FY23 at Rs.12,753 crores as against Rs. 18,975 crores in Q1FY22, impacted by MTM Losses on investment book.

The MTM hit also had an adverse impact on bank’s ROA and ROE, which stand at 0.48 per cent and 10.09 per cent respectively.

On asset quality front, SBI reported Gross NPA ratio down by 141 bps YoY at 3.91 per cent, while Net NPA ratio down by 77 bps YoY at 1.00 per cent. Provision Coverage Ratio (PCR) improved by 719 bps YoY at 75.05 per cent. PCR (Including AUCA) stands at 90.14 per cent.

Slippage Ratio of SBI for Q1FY23 stands at 1.38 per cent, which is 1.09 per cent better in YoY terms. Credit Cost of the public sector bank for Q1FY23 stands at 0.61 per cent, around 18 bps better than its Credit Cost for Q1FY22.

SBI has reported YoY credit growth to the tune of 14.93 per cent. Its Domestic Advances grew at 13.66 per cent YoY and Foreign Offices’ Advances grew by 22.39 per cent YoY.

SBI's Domestic Advances growth is mainly driven by the Retail Personal Advances (18.58 per cent YoY), out of which Home Loan grew by 13.77 per cent YoY. Corporate Loan book of the PSU bank grew by 10.57 per cent. SME and Agri loans have also registered YoY growth of 10.01 per cent and 9.82 per cent respectively.

“Bank’s Balance Sheet size crosses Rs.50 lakh crores," adding, “Capital Adequacy Ratio (CAR) as at the end of Q1FY23 stands at 13.43 per cent," said SBI while announcing its Q1 results on Saturday.

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UCO Bank Q1 Results: Profit rises 11% YoY

State-owned Uco Bank managed to report an 11% rise in June quarter net profit at Rs 224 crore against Rs 102 crore in the year ago period on account of sharp fall in provisions while its total income slipped due to treasury losses.

The bank booked a market to market loss of Rs 653 crore leading to negative other income of Rs 55 crore against Rs 857 crore in the year ago period.

In line with this, the operating profit fell 62.5% at Rs 440 crore for the quarter under review against Rs 1173 crore in the corresponding quarter in FY22.

However, a 76% dip in total provisions including those to cover bad loans at Rs 247 crore against Rs 1014 crore helped the lender show a rise in net profit.

Bank managing director Soma Sankara Prasad said the management does not expect more provisioning requirements in the September quarter against treasury operations as bond yields are likely to stay at the current levels or may come down with the Reserve Bank of India frontloading repo rate cuts.

Uco's net interest margin remained at a healthy 3.25% for the quarter.Its asset quality improved with gross non-performing assets ratio standing at 7.42% at the end of June as compared with 7.89% three months prior to that. Net NPA ratio stood at 2.49% against 2.7%.

The bank's capital adequacy ratio remained stable at 4.13%."We are not required to raise capital till March," Prasad said.

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Bank of India's Q1 profit declines 22% to Rs 561 cr as provisions rise

 

Bank of India's net profit declined 22.08 per cent year-on-year (YoY) to Rs 561 crore in the first quarter of financial year 2022-23 (Q1FY23) on fall in non-interest income and rise in provisions for bad loans.

The Mumbai-based public sector lender had posted a net profit of Rs 720 crore during the year-ago period (Q1FY22).

While the bank’s net interest income (NII) was up 29.4 per cent at Rs 4,072 YoY, net interest margin (NIM) improved to 2.55 per cent from 2.16 per cent a year ago, it said in a statement.

Its non-interest income declined sharply to Rs 1,152 crore in Q1FY23 from Rs 2,320 crore in the year-ago period. Its treasury revenues, which have a significant share in non-interest income, were hit due to hardening of bond yields.

The bank’s asset quality profile improved with gross non-performing assets (GNPAs) at 9.3 per cent till June 2022 from 13.5 per cent in the year-ago quarter. Net NPAs dipped to 2.21 per cent in June 2022 from 3.35 per cent a year ago.

NPA provisions rose to Rs 1,304 crore in the first quarter of FY23 from Rs 873 crore in the same quarter a year ago. The provision coverage ratio improved to 87.96 per cent for the quarter under review from 86.17per cent a year ago.

While the bank’s loan portfolio grew 15.2 per cent YoY to Rs 4.77 trillion as of June 2022, the deposits increased 2.78 per cent YoY to Rs 6.4 trillion in June 2022.

The total capital adequacy ratio (CAR) stood at 15.61 per cent in June 2022, up from 15.07 per cent in the same month a year ago.

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Punjab & Sind Bank net profit up 17.82%

 

Punjab & Sind Bank (PSB), a public sector bank, on Monday reported a 17.82 per cent increase in net profit for Q1 ended June 30, 2022 at Rs.205 crore.

However, the latest bottomline performance was 41 per cent lower than the net profit of Rs.346 crore recorded in Q4FY22.

Asked as to why the bank faced sequential decline in profits in Q1FY23, Swarup Kumar Saha, Managing Director & CEO, PSB said the performance for the quarter under review was weighed down by a marked-to-market loss of Rs.109 crore. He highlighted PSB had in Q!FY22 recorded treasury gain of Rs.130 crore.

This is the first quarter (June 2022) that the bank faced overall treasury loss largely due to spike in G-sec yield rates in the system. From April this year onwards, there has been an increase in interest rates, largely resulting from tightening of monetary policy by the RBI.

Despite the bank taking a MTM loss of Rs.109 crore in Q1, Saha expressed confidence that it would be able to this fiscal achieve bottomline of about Rs.1039 crore — the same level as recorded in 2021-22.

Saha said he was giving a somewhat muted profit guidance primarily on account of uncertainty in how interest rates will move in coming days and the MTM impact that it could have on the balance sheet.

“Every bank has had to face impact of MTM loss in the June quarter. This has been across the industry. We too had to face this. We have booked the entire amount (MTM loss) as RBI has not permitted banks to stagger it. As of now, we feel we are adequately cushioned. We feel the impact would not be substantial incrementally from June onwards”, Saha said post the announcement of Q1 results of the bank.

It maybe recalled that PSB had last fiscal staged a turnaround and reported a net profit of Rs.1,039 crore.

On capital raising, Saha said the bank was adequately capitalised for now, but may go in for some capital mop up in Q4FY23.

He said PSB is looking to transfer five non-performing assets (NPA) accounts amounting to Rs.528 crore to the newly set up, National Asset Reconstruction Company Ltd (NARCL).Total income of PSB for Q1FY23 stood at Rs.1915 crore.

Saha said the bank was aiming to bring down the gross NPA, which stood at 11.34 per cent now, to below 10 per cent by end March 2023. Net NPA, which was at 2.56 per cent as of June 2022, would be brought below 2 per cent as of end March 2023, he added. PSB was eyeing retail credit growth of 15 per cent this fiscal.

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