Bank of Maharashtra Q1 loss nearly trebles as NPA rise

Bank of Maharashtra on Friday reported a loss for the 10th consecutive quarter as bad loans continued to mount and provisions soared. The bank said its June quarter loss widened to Rs 1,119 crore from Rs 412.20 crore a year ago.

The bank reported a tax write back of Rs 43.56 crore in the quarter, compared to Rs 205.92 crore in the same period last year. The bank would have reported higher loss if there was no tax write back.

Provisions and contingencies rose 41.8% to Rs 1,632.88 crore in the quarter from Rs 1,151.60 crore a year ago. On a quarter-on-quarter basis, they fell 20% from Rs 2,040.58 crore.

Gross non-performing assets (NPAs) fell marginally 1.38% to Rs 17,800.30 crore at the end of the June quarter from Rs 18,049.23 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 21.18% as compared to 19.48% in the previous quarter and 18.59% in the year-ago quarter. Net NPAs were at 12.2% in the June quarter compared to 11.24% in the previous quarter and 12.48% in the same quarter last year.

Net interest income (NII), or the core income a bank earns by giving loans, was up 24% to Rs 858.49 crore versus Rs 692.80 crore last year. Other income declined 25.5% to Rs 464.95 crore.

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Bank of India(BOI) Q1 profit rises 8%

Public sector lender Bank of India has reported first quarter profit growth at 8.4 percent year-on-year despite rising provisions and weakening asset quality, beating analyst expectations.

Analyst on an average had estimated the bank to report huge losses of more than Rs 1,000 crore on account of provisions.

Profit during the quarter increased to Rs 95.1 crore compared to Rs 87.7 crore in same period last fiscal. Strong growth net interest income and tax credit helped the bank report profit for the quarter but apart from higher provision, lower other income and operating income restricted profit growth.

Net interest income in Q1 grew by 32.4 percent to Rs 3,354.3 crore compared to Rs 2,533 crore in corresponding period last fiscal.

Asset quality weakened for the quarter ended June with gross non-performing assets (NPA) as a percentage of gross advances climbing to 16.66 percent versus 16.58 percent in the March quarter. Net NPAs, too, were higher at 8.45 percent against 8.26 percent sequentially.

Provisions for bad loans more than halved sequentially to Rs 2,564 crore from Rs 6,674 crore, but increased 14 percent year-on-year.

The bank has received tax credit of Rs 790 crore during the quarter against expenses of Rs 46.4 crore in year-ago.

Other income (non-interest income) dipped by 48 percent year-on-year to Rs 830.1 crore and operating profit fell 21 percent to Rs 1,869.2 crore for the quarter ended June 2018.

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Central Bank of India net loss widens in Q1

State-owned Central Bank of India’s net loss widened by 74% to Rs. 1,522.54 crore in the quarter ended June 30, 2018 due to a more than two-fold spike in provisions for bad loans.

The bank had registered a net loss of Rs. 576.76 crore in the April-June quarter of 2017-18, according to a regulatory filing by the bank. In preceding quarter ending March 2018, the bank had reported a net loss of Rs. 2,113.51 crore.

The bank’s income fell to Rs. 5,904.82 crore in the first quarter of 2018-19 from Rs. 6,870.78 crore in the same period of 2017-18 as core income dropped. The bank earned an interest income of Rs. 5,691.87 crore during the quarter through June, a fall of 8.4% from Rs. 6,210.91 crore in the year-ago quarter.

Gross non-performing assets (NPAs) jumped to 22.17% of gross advances by the end of June from 18.23% as on June 30, 2017. In value terms, gross NPAs or bad loans stood at Rs. 38,777.66 crore as against Rs. 31,398.47 crore.

Net NPAs, however, fell to 10.58% (Rs. 16,086.25 crore) by the end of June quarter, from 11.4% (Rs. 17,407.43 crore) year earlier same period. The provisioning for bad loans were raised by over two-times to Rs. 2,538.14 crore at June-end this year from Rs. 1,028.93 crore set aside for the same period of 2017-18.

Overall provisions and contingencies too increased to Rs. 2,768.22 crore against Rs. 1,269.02 crore. The return on assets further worsened at (-) 1.85% from (-)0.71% year ago. However, it improved from (-)2.75% in March quarter.

Central Bank of India said for the accounts covered under the provisions of Insolvency and Bankruptcy Code, it is holding an additional provision of ₹ 690.20 crore as on June 30, 2018, in respect of 21 borrower accounts.

“During the quarter, the bank has appropriated the amount recovered in accordance with the resolution plan approved vide order National Company Law Tribunal (NCLT). The Bank has appropriated an amount of Rs. 76.29 crore recovered in one of the cases, where appeal is pending before the National Company Law Appellate Tribunal (NCLAT),” it said. Provisioning coverage ratio stood at 66.42% as on June 30, 2018 against 54.48% year ago.

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IDFC Bank Q1 profit drops 58.5%

IDFCBank posted a 58.5 percent drop in net profit at Rs 181 crore for the first quarter ending June led by a substantial dip in other income and jump in provisions towards bad loans.

Net profit of the new private sector lender for the same period last year was Rs 437.6 crore.

NII or Net interest income, the difference between interest earned on loans and paid on deposits, increased by 26 percent to Rs 490 crore from Rs 388 crore a year ago.

Other income declined by 69 percent to Rs 198.7 crore from Rs 648.8 crore a year ago on account of treasury losses during the quarter.

Asset quality

Provisions towards bad loans rose to Rs 340 crore from a write-back of provisions of Rs 146 crore in the corresponding quarter a year ago.

As a percentage of total loans, gross non-performing asset (NPA) ratio reduced to 1.24 percent as on June end 2018 from 3.31 percent in the March quarter 2018 and sequentially even lower from 4.13 percent in the June quarter last year.

Net NPAs also marginally declined to 1.63 percent of total loans as against 1.69 percent in the March quarter and 1.70 percent in June last year.

In absolute terms, gross NPAs stayed almost flat at Rs 1,774.5 crore from 1,779 crore in the March quarter and Rs 2,000 crore in June 2017, while net NPAs edged down by a mere Rs 10 crore to Rs 881 crore from Rs 891 crore but increased on a sequential basis from Rs 804 crore.

Capital adequacy ratio was significantly higher at 19.25 percent from 18.60 percent in the same quarter a year ago.

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Axis Bank Q1 profit nearly halves YoY as provisions jump 43%

Axis Bank on Monday posted 46.30 per cent YoY fall in net profit at Rs 701.09 crore for the quarter ended June. It had reported a net profit of Rs 1,305.60 crore in the corresponding quarter last year.

ETNow poll had predicted a net profit of Rs 600 crore for the June quarter.

Provisions increased 42.51 per cent on a year-on-year basis to Rs 3,337.70 crore in Q1FY19 over Rs 2,341.93 crore in Q1FY18. They declined 53.51 per cent on quarter-on-quarter basis.

Net interest income of the bank increased 11.92 per cent YoY to Rs 5,166.80 crore for the quarter under review against Rs 4,616.14 crore in the corresponding quarter last year.

Asset quality of the lender improved during the quarter with percentage of gross non-performing assets coming in at 6.52 per cent against 6.77 per cent on a quarter-on-quarter basis. Percentage of net NPA declined to 3.09 per cent from 3.40 per cent on QoQ basis.

The bank’s balance sheet grew 14 per cent YoY and stood at Rs 6,92,686 crore as on June 30. Axis Bank’s advances grew 14 per cent YoY to Rs 4,41,074 crore for the quarter under review.

The private sector lender had reported its first-ever loss since listing at Rs 2,188.74 crore in the sequential quarter ended March 2018.

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Indian Overseas Bank(IOB) Q1 net loss widens

Indian Overseas Bank(IOB) on Friday reported a loss for the 12th consecutive quarter as bad loans continued to mount and provisions soared. Net loss for the quarter stood at Rs 919.44 crore against Rs 499.09 crore a year ago.

Provisions and contingencies rose 49.30% to Rs 2,400.60 crore in the quarter from Rs 1,607.88 crore a year ago. On a quarter-on-quarter basis, they fell 64.56% from Rs 6774.55 crore.

Gross non-performing assets (NPAs) rose 7.6% to Rs 38,146.05 crore at the end of the June quarter from Rs 35,453.12 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 25.64% as compared to 25.28% in the previous quarter and 23.60% in the year-ago quarter. Net NPAs were at 15.10% in the June quarter compared to 15.33% in the previous quarter and 14.97% in the same quarter last year.

Net interest income (NII), or the core income a bank earns by giving loans, was up 17.91% to Rs1208.10 crore versus Rs1024.61 crore last year. Other income surged 9.2% to Rs 1078.11 crore.

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Bank of Baroda(BoB) profit more than doubles in Q1

Bank of Baroda(BoB) on Friday reported a more than two-fold jump in net profit at Rs 528.26 crore for the first quarter of 2018-19 as provisions for bad loans dropped.

The bank had reported a net profit of Rs 203.39 crore in the same quarter of 2017-18. The bank had reported a huge net loss of Rs 3,102.34 crore in the previous January-March quarter.

Total income for the April-June period of 2018-19 edged up to Rs 12,787.71 crore from Rs 12,103.86 crore in the same period of preceding fiscal, the bank said in a regulatory filing.

The net interest income (NII) increased by 28.66 percent year on year and 9.47 percent quarter on quarter. Operating income (NII and other income) increased by 11.56 percent from a year ago.

Net Interest Margin (NIM) improved to 2.65 percent in June 2018 quarter from 2.51 percent during previous quarter, the bank said. Core fee income increased by 16.76 percent to Rs 794 crore. Bank's provisions for bad loans were brought down to Rs 1,759.72 crore for the first quarter of current fiscal from Rs 2,156.69 crore for the same period of 2017-18.

Gross NPAs in value terms dropped to Rs 55,874.81 crore at June-end this year from Rs 56,480.39 crore at end-March, but were up compared to Rs 46,172.77 crore at the end of June 2017.

Overall provisions and contingencies also came down to Rs 2,165.64 crore from Rs 2,368.05 crore.

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ICICI Bank posts first ever net loss since listing

ICICI Bank reported a net loss of Rs 119.5 crore in the first quarter of FY19 compared to a profit of Rs 2,049 crore in the same quarter last year.

This is the first loss reported by the bank since listing in 1998.

The net interest income or NII, the difference between interest earned and expended, was up 9 percent at Rs 6,102 crore from Rs 5,590 crore. Provisions were up 129 percent year-on-year (YoY) at Rs 5,971 crore. However, it was down 10 percent quarter on quarter (QoQ). Recoveries for the quarter were at Rs 2,036 crore.

A Reuters' poll estimated the lender’s net profit to fall 31 percent to Rs 1,422 crore. A Motilal Oswal report had projected the net profit to fall about 7.3 percent to Rs 1,900 crore. Provision Coverage Ratio improved to 66.1 percent versus 53.6 percent QoQ.

Net Interest Margin (NIM), the difference between the interest income generated and interest paid to lenders, was at 3.19 percent from 3.24 percent QoQ. The non-interest income, excluding treasury income, was Rs 3,085 crore in Q1FY19 compared to Rs 2,530 crore a year ago. The fee income grew 16 percent YoY to Rs 2,754 crore.

CASA deposits increased by 16 percent YoY to Rs 2.76 lakh crore. The CASA ratio was 50.5 percent at the end of Q1 compared to 49 percent a year ago. Total deposits increased by 12 percent YoY to Rs 5.46 lakh crore.

NPAs

Gross non-performing assets (GNPA) improved to 8.81 percent from 8.84 percent QoQ. Net non-performing assets improved to 4.19 percent from 4.77 percent QoQ.

In absolute terms, GNPA was Rs 53,465 crore for the quarter compared to Rs 54,063 crore in the March quarter. Net NPA was Rs 24,170 crore compared to Rs 27,886 crore QoQ.

While the gross additions to NPA at Rs 4,036 crore ($589 million) were the lowest in the last 11 quarters, additional provisions on existing NPAs as per Reserve Bank of India (RBI) guidelines (aging-based provisions and provisions for cases directed by RBI to be referred to the National Company Law Tribunal) resulted in total provisions of Rs 5,971 crore ($872 million) and a net loss of Rs 120 crore (US$ 18 million) in Q1-2019, the bank said.

The Bank had classified three borrower accounts in the gems and jewellery sector with fund-based outstanding of Rs 289.45 crore through profit and loss account and around Rs 505.42 crore by debiting reserves and surplus, as permitted by RBI.

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