Andhra Bank Q1 Result, Net falls 84% to Rs 31 crore

Andhra Bank on Saturday reported a steep 84.64 percent drop in net profit at Rs 31.09 crore for the quarter ended June, 2016 under the impact of a rise in fresh slippages. The bank's net profit was Rs 202 crore in the corresponding quarter previous year.

The total income for the quarter grew 7.2 per cent at Rs 4,855.50 crore as compared to Rs 4,529.23 crore in the year ago period.

The ratio of net non-performing assets (NPAs) more than doubled to 6.21 per cent during the quarter as compared to 2.99 per cent in the corresponding previous quarter. The gross NPAs rose to 10.30 per cent from 5.75 per cent in the year ago period.

"Fresh slippages peaked to Rs 3,500 crore in this quarter from a level of Rs 2,500 crore in each of the last two quarters. While the stress is continued stay in the system we believe that there will be a decline in slippages going forward," Andhra Bank managing director and chief executive Suresh N Patel said.

 

Despite the NPA issues the bank was able to increase the operating profit by 21 per cent, he added.

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Union Bank of India Q1 Result, Profit falls to Rs166.32 crore

Union Bank Of India on Saturday reported a 68% year-on-year decrease in its fiscal first quarter net profit. Net profit declined to Rs 166.32 crore in the quarter ended 30 June from Rs 518.78 crore a year ago on account of higher provisions.

According to a Bloomberg poll of 19 analysts, the bank was expected to post a net profit of Rs 223.90 crore for June end quarter.

Net interest income, or the core income a bank earns by giving loans, decreased marginally to Rs 2,102.25 crore against Rs 2,130.17 crore a year ago.

Provisions more than doubled to Rs 1,352.96 crore in June quarter from Rs 642.41crore a year ago, however provision coverage ratio stood at 50% for the June ended quarter compared to 58.05% last year.

This is primarily because gross non performing assets (NPAs) increased from Rs 14,143.62 crore in June last year to Rs 27,280.90 crore this June whereas provisions increased by mere Rs 710.55 crore for the same period. Gross NPAs rose 12.86% to Rs 27,280.90 crore at the end of the June quarter from Rs 24,170.89crore in the March quarter.

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Indian Bank Q1 Result, profit rises 42.77% to Rs307.36 crore

Shares of Indian Bank Ltd jumped 10% on Tuesday after the state-run bank reported a 42.77% increase in its June quarter net profit, beating analysts’ estimates.

The bank attributed the net profit of Rs.307.36 crore, up from Rs.215.28 crore a year ago, to higher net interest income, other income and lower employee cost.

A Bloomberg poll of seven analysts had estimated a net profit of Rs.148.70 crore.Net interest income (NII), or the core income a bank earns by giving loan Rs.1,236.32 crore in the June quarter from Rs.1,120.33 crore last year. Other income increased 17.6% to Rs.441.67 crore from Rs.375.57 crore in the same period last year. Employee cost fell 8.4% to Rs.485.59 crore.

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Gross non-performing assets (NPAs) rose 0.76% to Rs.8,894.24 crore at the end of the June quarter from Rs.8,827.04 crore in the March quarter. On year-on-year basis, gross NPAs jumped 53% from Rs.5,815.15 crore. As a percentage of total loans, gross NPAs stood at 6.97% at the end of the June quarter, compared to 6.66% in the previous quarter and 4.65% in the year-ago quarter.

Net NPAs were at 4.48% in the June quarter compared to 4.2% in the previous quarter and 2.62% in the same quarter a year ago.

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ICICI Bank Q1 Result, profit falls 25% to Rs2,232.35 crore

India's largest private sector lender ICICI Bank's April-June quarter standalone profit fell sharply by 25 percent year-on-year to Rs 2,232.4 crore, dented by jump in provisions, but was ahead of estimates. 

Net interest income, the difference between interest earned and interest expended, grew only by 0.9 percent to Rs 5,158.5 crore on year-on-year basis, which missed analysts' expectations. Profit was estimated at Rs 2,127.7 crore and net interest income Rs 5,342.6 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18. 

Advances for the quarter increased by 12 percent year-on-year to Rs 4.49 lakh crore with retaining strong retail loan growth of 22 percent (that constituted about 46 percent of total loan portfolio), the private sector lender said, adding deposits grew by 15 percent to Rs 4.24 lakh crore with CASA deposits growth of 18 percent. 

Net interest margin remained under pressure, falling to 3.16 percent in June quarter from 3.37 percent in March quarter. Provisions for bad loans during the quarter shot up significantly by 163.2 percent on yearly basis to 2,514.5 crore but sequentially fell 24.4 percent from Rs 3,326.2 crore. 

Provision coverage ratio declined to 57.1 percent in June quarter from 61 percent in preceding period. Profit for the quarter was partly supported by other income and lower tax cost. Non-interest income (other income) for April-June quarter increased 14.7 percent to Rs 3,429.3 crore and operating profit grew by 3.5 percent to Rs 5,214.7 crore compared with year-ago period while tax expenses plunged 57.7 percent to Rs 467.9 crore. 

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Syndicate Bank Q1 Result, profit down 74% at Rs79 crore

State-owned Syndicate Bank on Thursday said net profit in the June quarter fell 74% from a year ago, as it set aside more money against soured loans.

Provisions rose to Rs.673.5 crore, up 40% from a year ago, while net profit fell to Rs.79 crore from Rs.302 crore in the same period.

The first quarter numbers, however, were an improvement from the Rs.2,158 crore loss that the bank reported in the January-March period. While announcing the loss last quarter, the bank had blamed an exceptional item worth Rs.882.64 crore, over and above the total provisions worth Rs.2,411.83 during the quarter. The exceptional item was due to a fraud that the bank reported during the March quarter.

The bank’s gross non-performing asset (NPA) ratio during the first quarter rose to 7.53%, as compared with 6.7% in the January-March period. As an absolute number, gross NPAs in the period were Rs.15,434.26 crore, up 11.6% from the fourth quarter of the last financial year.

Net NPA ratio during the first quarter rose 56 basis points (bps) on a quarter-on-quarter basis to 5.04%.

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PNB Q1 Result, profit falls 57% to Rs306 crore

Punjab National Bank reported 57 per cent fall in net profit at Rs 306.36 crore for the quarter ended June 30, 2016 against Rs 720.71 crore in the corresponding quarter a year ago. For the sequential quarter ended March 31, 2016, it had reported a net loss of Rs 5,367.14 crore. Total income of Punjab National Bank jumped by 3.71 per cent year-on-year to Rs 13930 crore.

Net interest income of the bank declined by 9.83 per cent to Rs 3699 crore during the quarter under review against Rs 4102.47 crore in the same quarter last year. Brokerage House ICICI Securities was expecting first quarter net profit of Rs 1,089.20 crore from Punjab National Bank.

Gross non-performing assets (NPAs) of the bank as a percentage of advances more than doubled to 13.75% from 6.47% in the year-ago period. Net NPAs also touched 9.16% from 4.05% in the year-ago quarter.

The NPA ratios have increased even when compared to the preceding quarter when the bank had reported a record loss of Rs.5,367 crore, hit by the sharp increase in bad debts and need for greater provisioning. 

Gross NPAs were at 12.9% and net NPAs at 8.61% in the quarter ended March.

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State Bank of Travancore Q1 Result, net loss at Rs 743 crore

Public sector State Bank of Travancore (SBT) has reported a net loss of Rs 742.89 crore for the June quarter due to higher NPAs.

Its net profit during the corresponding quarter in last financial year stood at Rs 81.32 crore, the bank said in a statement.

On account of higher provisions of Rs 1,170 crore for NPA (Non-Performing Assets) and additional prudential provisionsor other stressed accounts, the bank has faced losses.

The Gross NPA stood at 9.38 per cent, while Net NPA was 5.99 per cent as onJune 2016, it said.

The bank, however, has recorded an operating profit of Rs 426.65 crore during the quarter under review.

SBT — one of the Kerala based-banks — is proposed to be merged with State Bank of India (SBI).

The Kerala Assembly had recently passed a resolution asking the Centre and RBI to revoke the decision for merger. Staff Unions of SBT had also protested against the merger. Both ruling CPI(M)-led LDF and Congress headed UDF had supported the resolution.

The other income also grew by around 35 per cent to Rs 351.37 crore during the three-month period as against Rs 260.72 crore in June quarter of the preceding financial year, on the back of robust growth of 142 per cent growth in profit from treasury operations.

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State Bank of Mysore Q1 Results, posts Rs 472 crore loss

State Bank of India (SBI) associate State Bank of Mysore (SBM) slipped into losses at Rs.471.88 crore in the first quarter on mounting bad loans, resulting into over sevenfold jump in provisions.

The bank posted a net profit of Rs.94.07 crore during the corresponding April-June quarter of the previous fiscal.

Provision for bad loans zoomed to Rs.1,037.78 crore, more than 7.8 times from Rs.131.89 crore parked aside a year ago, showed the bank’s balance sheet filed with BSE.

Total income increased marginally to Rs.1,987.63 crore during the June quarter from Rs.1,951.65 crore a year ago. SBM’s gross non-performing asset (NPAs) or bad loans almost doubled at 7.83% of gross advances as of June 2016, from 4.21% at the end of June 2015.

In absolute terms, the gross NPAs surged to Rs.4,323.14 crore from Rs.2,213.62 crore. Similarly, net NPAs also jumped to 4.65% of net advances as of June, up from 2.10% a year ago.

In volume terms, net NPAs were Rs.2,479.93 crore as against Rs.1,076.56 crore. Classification of stressed assets under the Reserve Bank of India’s (RBI) asset quality review (AQR) guidelines has been eating into most of public sector lender as they have to keep a higher reserves to against non-performing loans.

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