Indian Overseas Bank Q1 Result, Loss Rs 1,450.50 crore

Chennai-based Indian Overseas Bank (IOB) reported a Rs.1,450.50 crore loss for the quarter ended 30 June after a fifth of its advances turned bad. The bank reported a net profit of Rs.14.76 crore a year ago.

Gross non-performing assets (NPAs) as a ratio of gross advances were 20.48% at the end of June, higher than the 17.4% reported three months earlier. This is the highest gross NPA ratio reported by an Indian lender in 13 years. Dena Bank reported a gross NPA ratio of 21.82% in September 2002, which came down to 20.7% in December 2002. IDBI Bank reported a 29.9% gross NPA ratio in December 2003, according to Capitaline data.

IOB’s bad loans ratio has been deteriorating for a while now. On 5 October 2015, the banking regulator called for corrective action at the bank to check bad loans, improve internal controls and consolidate its business activities. The move came after the bank’s gross bad loans ratio widened to 11% of its gross advances at the end of the September 2015 quarter.

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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.

ns, increased 10.4% to

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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Yes Bank Q1 Result, Profit up 33%, revenue in-line; asset quality stable

Private sector lender Yes Bank Wednesday reported 32.8 percent rise in net profit to Rs 731.8 crore during the first quarter ended June.

The bank's net profit during April-June quarter of the previous fiscal was Rs 551.20 crore.

Total income also increased to Rs 4,762.8 crore in the first quarter of 2016-17 as against Rs 3,797.02 crore in the same period of previous fiscal.

However, bank's asset quality slipped during the period under review, with gross Non-Performing Assets (NPAs) rising to 0.76 percent of the gross advances as against 0.46 percent a year ago.

Similarly, net NPAs or bad loans also inched up to 0.29 percent, from 0.13 percent of net advances.

Net interest margin (NIM), the key gauge of profitability, expanded to 3.4 percent in the first quarter of the current fiscal, from 3.3 percent in the year-ago period, Yes Bank said in a statement.

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IDFC Bank Q1 Result, Profit rises 60% to Rs 264.76 crore

IDFC Bank Ltd said its fiscal first quarter profit rose 60% to Rs.264.76 crore from Rs.165.06 crore in the preceding March quarter.

The earnings can’t be compared with the previous year as IDFC Bank started operations in October.

IDFC Bank and Bandhan Bank had received in-principle approvals from the Reserve Bank of India in 2014 to start universal banks.

IDFC Bank’s total income increased 12% to Rs.2188.28 crore from the preceding quarter ended 31 March. Net interest income stood at Rs.515.2 crore for the April-June quarter, a rise of 25% from the March quarter.

Total credit grew 7% to Rs.57,470 crore as on 30 June from the preceding quarter. Deposits rose 59% to Rs.13,029 crore from the March quarter.

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Karur Vysya Bank Q1 Result, Profit up 8% at Rs 146 cr

Private sector Karur Vysya Bank   today posted a 8.74 percent rise in net profit at Rs 146.35 crore for the quarter ended June 30, 2016. 

The Tamil Nadu-based bank's net profit had stood at Rs 134.58 crore during the corresponding quarter last fiscal, a bank statement said. 

The net profit for the financial year ending March 31, 2016 stood at Rs 567.63 crore. Total income for the April-June quarter went up to Rs 1,547.31 crore from Rs 1,518.50 crore registered in the year-ago period. 

For the financial year ending March 31, 2016, total income was at Rs 6,150.21 crore. As on June 30, 2016 Gross Non Performing Assets decreased to 1.79 per cent from 1.91 percent while Net NPA decreased to 0.79 per cent from 0.88 per cent. 

Net Interest Margin rose to 3.52 per cent for the April-June 30, 2016 quarter from 3.30 per cent registered during same period of previous year. 

The aggregate business level touched Rs 90,096 crore in the quarter ending June 30, 2016. Deposits recorded a 11.07 per cent growth to reach Rs 50,715 crore from Rs 45,659 crore registered during same period of previous year. 

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Canara Bank Q1 Result, Profit half

Canara Bank profit for the first quarter of 2016-17 more than halved from a year ago to Rs. 228.95 crore (Rs 478.84 crore posted in the same period last year).

State-run lender Canara Bank on Monday reported 52.1% decline in net profit at Rs.228.9 crore in the first quarter ended 30 June as it parked a higher share towards contingencies for bad loans.

The Bengaluru-headquartered bank’s net profit in same quarter of the previous fiscal year stood at Rs.478.84 crore, Canara Bank said in a regulatory filing to BSE.

The bank’s provisions and contingencies rose to Rs.1,492.92 crore in the April-June quarter from Rs.1,359.73 crore in the same period a year ago.Total income during the quarter under review declined to Rs.11,786.3 crore, from Rs.12,252.64 crore a year ago.

Bank’s asset quality deteriorated further as gross non-performing assets (NPAs) or bad loans stood at 9.71% of gross advances in the first quarter of FY17 against 3.98% in the same period of FY16. Net NPAs too slipped to 6.69% of net advances as against 2.74% a year ago.

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Axis Bank Q1 Result, Profit Down

Private lender Axis Bank reported 21 per cent fall in net profit figures at Rs 1555.53 crore for the quarter ended June 30, 2016 against Rs 1978.44 crore in the corresponding quarter a year ago.

 

Bad loans, or net non-performing assets (NPA) of the bank ballooned 59 per cent to Rs 4010.23 crore against Rs 2522.14 crore in the sequential quarter ended Marc

h 31, 2016. Net NPA figures stood at Rs 1461.29 crore in the corresponding quarter a year ago.

Net interest income of the bank jumped by 11.35 per cent to Rs 4,516.92 crore for the quarter under review against Rs 4,056.23 crore in the corresponding quarter last year.

Operating profit of the bank jumped 9.22 per cent year-on-year to Rs 4,469.37 crore against Rs 4,092.07 crore in the same quarter last year.

During April-June period, Axis Bank added 102 branches to its network across the country. As on June 30, the bank had a network of 3,006 domestic branches and extension counters situated in 1,882 centres compared to 2,904 domestic branches and extension counters situated in 1,855 centres last quarter.

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Federal Bank Q1 Result, Net Jumps 18.3%

Private lender Federal Bank today reported a rise of 18.3 percent in net profit at Rs 167.3 crore during the June quarter of the current fiscal. 

The bank had reported a net profit of Rs 141.4 crore in April-June of 2015-16. The total earnings of the bank increased to Rs 2,250.8 crore for the quarter under review, as against Rs 2,107.09 crore a year before, the bank said in a regulatory filing. 

The bank kept its grip on asset quality as it saw only a marginal uptick in its bad loan profile, with gross non-performing assets (NPAs) rising to 2.92 percent of gross advances as of June 2016 against 2.59 percent a year ago. 

Net NPAs were at 1.68 percent of net loans at the end of June, up from 0.98 percent in the previous year. Provisions went up to Rs 168.48 crore as of June 2016 as against Rs 153.10 crore at the end of June 2015.

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Vijaya Bank Q1 result, Profit rises 13.37%

Public sector Vijaya Bank on Friday reported a 13.37% increase in net profit to Rs.161.66 crore for the first quarter ended 30 June on account of improved net interest margins. 

The city-headquartered bank had reported a net profit of Rs.142.59 crore in the corresponding period last year.

Total income rose marginally to Rs.3,295.05 crore during the first quarter, as against Rs.3,289.05 crore in the year-ago period.

Commenting on the performance, the bank’s MD and CEO Kishore Sansi said, “In spite of all the challenges that the banking industry is passing through, we are very happy to announce that there is a steady growth not only in the business, but also in terms of all fundamental parameters both in the net interest margin as also in the net interest income.”

“The reason for increased net profit is the net interest margins have increased, there is more reliance on retail, we have shed our bulk deposits, we have increased our fee based income, we have increased our CD ratio—so all these factors put together have resulted in the increase in the operating profit also,” Sansi told reporters.

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Kotak Mahindra Bank Q1 Result, Profit double

Kotak Mahindra Bank Ltd’s June-quarter profit more than doubled from a year ago as it earned more interest income and collected higher fees and commissions.

On a stand-alone basis, the bank reported a net profit of Rs.741.97 crore compared to Rs.189.78 crore a year ago. Net interest income rose 20.1% from a year ago to Rs.1,919.10 crore.

The numbers for the current quarter are not comparable with last year’s because the bank had taken pension provisions and one-time stamp duty charges worth nearly Rs.400 crore, after it began the procedure of merging ING Vysya Bank with itself in April 2015.

“All through the last financial year, we were trying to make sure that both banks are merged properly and all processes are integrated. That integration is now over and we should start seeing the benefits of it going ahead now. We are expecting our return on assets to improve and our cost-to-income ratio to come down steadily,” said Dipak Gupta, executive director, Kotak Mahindra Bank.

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State Bank of Bikaner and Jaipur (SBBJ) Q1 Result, Reported loss

State Bank of Bikaner and Jaipur (SBBJ) has reported loss of Rs.221.56 crore in the fiscal first quarter because of higher provisions.

The state-run bank reported a net profit of Rs.270.62 crore in the year-ago quarter. The loss was restricted because of a tax write back of Rs.118.16 crore in the quarter ended 30 June compared with a tax expenses of Rs.142.23 crore a year ago.

This is the first time since June 1997 the bank has reported a quarterly loss, according to Capitaline data.

In December, Reserve Bank of India (RBI) conducted an asset quality review across the banking sector, following which the banks were asked to recognize visibly stressed assets as non-performing assets (NPAs). RBI also asked banks to make adequate provisions for the stressed assets. This has hit the profitability of some banks.

Gross NPAs at SBBJ rose 27.5% to Rs.4,592.87 crore at the end of the June quarter from Rs.3,602.76 crore in the March quarter. On a year-on-year basis, gross NPAs jumped 46.6% from Rs.3,133.39 crore. As a percentage of total loans, gross NPAs stood at 6.2% at the end of the June quarter as compared to 4.82% in the previous quarter and 4.45% in the year-ago quarter.

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Lakshmi Vilas Bank Q1 Result, Profit rises

Lakshmi Vilas Bank Q1 profit rises 51% on NII, low provisions

Private sector lender Lakshmi Vilas Bank 's first quarter (April-June) profit shot up 50.6 percent year-on-year to Rs 60.7 crore on higher net interest income and lower provisions. 

Net interest income, the difference between interest earned and interest expended, grew by 22.2 percent to Rs 177.5 crore in the quarter ended June 2016 from Rs 145.2 crore in same period of last fiscal. 

Other income (non-interest income) increased 12.9 percent to Rs 89.2 crore and operating profit was up by 16.9 percent at Rs 125.8 crore compared with corresponding period of last fiscal. Provisions for bad loans fell 39.7 percent year-on-year (up 29.7 percent quarter-on-quarter) to Rs 35.15 crore in June quarter. 

Asset quality slightly weakened as gross non-performing assets (NPA) increased 17 basis points sequentially to 2.14 percent and net NPA 12 basis points to 1.30 percent in Q1. 

< In absolute terms, gross NPA rose 10.4 percent to Rs 431.9 crore and net NPA increased 12.3 percent to Rs 260.2 crore compared with preceding period.

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HDFC Bank Q1 Result, Profit-NII up

HDFC Bank Ltd on Thursday said its fiscal first quarter net profit rose 20.15% from a year ago as it earned higher interest on loans and made more money from fees and commissions.

Net profit rose to Rs.3,238.91 crore in the three months ended 30 June from Rs.2,695.72 crore a year ago.

According to a poll of 23 Bloomberg analysts, the bank had been expected to post a profit of Rs.3,275.40 crore.

Net interest income (NII), or the core income a bank earns by giving loans, increased 21.8% to Rs.7,781.44 crore from Rs.6,388.70 crore last year.

Non-interest income including fees and commissions increased 14% to Rs.2,806.61 crore from Rs.2,461.91 crore in the same period last year. Among the components of non-interest income, fees and commissions saw a 15.5% growth as compared with last year and rose to Rs.1,978 crore.

Net interest margin rose by 10 basis points from last year to 4.4%. “The NIM has mostly remained within the 3.9-4.3% range. This quarter’s increase is due to a change in the loan mix and also repricing of deposits,” said Paresh Sukthankar, deputy managing director, HDFC Bank.

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