UCO Bank Q2 results: Reports Rs 30-cr net profit

State-owned UCO Bank on Thursday reported a net profit of Rs 30.12 crore for the second quarter ended September 30. The bank had posted a net loss of Rs 891.98 crore during the corresponding quarter of the previous financial year.

Sequentially, the profit during the second quarter of 2020-21 was higher from Rs 21.46 crore in the first quarter ended June 2020.

Its total income was down at Rs 4,326.14 crore during the September 2020 quarter, from Rs 4,533.51 crore a year ago, UCO Bank said in a regulatory filing.

Interest income fell to Rs 3,614.61 crore during the quarter, compared with Rs 3,804.64 crore in the year-ago period.

The bank improved on its asset quality significantly by bringing down the gross non-performing assets (NPAs) to 11.62 per cent of the gross advances as on September 30, 2020, from 21.87 per cent as of September 2019.

In absolute value, the gross NPAs were down at Rs 13,365.74 crore as against Rs 25,665.14 crore.

Similarly, the net NPAs decreased to 3.63 per cent (Rs 3,831.88 crore) as against 7.32 per cent (Rs 7,238.33 crore).

Provisioning for bad loans also fell to Rs 1,032.14 crore, from Rs 2,034.07 crore a year ago.

The overall provisioning for bad loans and contingencies stood at Rs 1,300.20 crore, down from Rs 2,099.02 crore a year ago.

UCO Bank also said that as per a Supreme Court order and necessary guidelines issued by the Reserve Bank of India (RBI), it has kept Delhi Airport Metro Express Pvt Ltd as a standard account.

However, necessary provision of Rs 77.54 crore has been held by the bank against the amount of Rs 194.14 crore which has not been treated as NPA as per required norms.

"As per RBI guidelines issued during the financial year ended March 31, 2018, in respect of select borrowers accounts covered under provisions of the Insolvency and Bankruptcy Code (IBC), against total outstanding of Rs 762.49 crore, the bank is holding a provision of Rs 735.41 crore as on September 30, 2020," UCO Bank said.

The non-performing loan provisioning coverage ratio stood at 89.82 per cent as on September 30, 2020.

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Union bank of India Q1 result : profit down 13%

In its Q1 results after the amalgamation of Andhra Bank and Corporation Bank with it, Union Bank of India (UBI) reported a standalone net profit of ₹333 crore in the quarter ended June 30, 2020.

The public sector bank had reported a net profit of ₹381 crore in the year-ago period.

The bank, in its analyst presentation, said Andhra Bank and Corporation Bank amalgamated into it with effect from April 1. Accordingly, financials as on June 2019 and March 2020 are for the amalgamated entity, it added.

Rajkiran Rai G, MD and CEO, said there has been a substantial improvement in net interest income (NII).

NII (difference between interest earned and interest expended) was up 17 per cent at ₹6,403 crore (₹5,468 crore in the year-ago period).

Other income (comprising core non-interest income, treasury income and recovery in written-off accounts), however, was down 23 per cent at ₹1,462 crore (₹1,897 crore).

Operating profit nudged up 3 per cent at ₹4,034 crore (₹3,918 crore).

Slippages were lower at ₹1,750 crore (₹4,303 crore in the preceding quarter).

Reduction in non-performing assets (NPAs) was sharply down at ₹1,753 crore (₹7,542 crore: preceding quarter) as the pandemic threw recovery operations out of gear.

Rai said 28 per cent of the bank’s term loans by value are under Covid-19 related moratorium as of June-end 2020.

The bank’s board has given approval for one-time restructuring of personal and MSME loans, and instructions will soon be given to the branches on the standard operating procedure to be followed, he added.

The Union Bank chief underscored that the amalgamation will result in cost savings of ₹3,600 crore over three years.

Rai said UBI will disinvest its 30 per cent stake in IndiaFirst Life Insurance Company by December 2020. This sale is expected to fetch about ₹900 crore to ₹1,000 crore.

Originally, erstwhile Andhra Bank was owning 30 per cent stake in IndiaFirst Life. UBI currently has 25.10 per cent stake in Star Union Dai-Ichi Life Insurance Company.

Rai said UBI has board approval for raising ₹10,300 crore, comprising ₹6,800 crore equity and the balance in the form of additional tier-I capital.

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Punjab National Bank (PNB) Q1 result, net profit down 70%

State-owned Punjab National Bank (PNB) on Friday reported a standalone net profit of ₹308 crore for the quarter ended June.

The country's second largest lender had posted a net profit of ₹1,018.63 crore during the corresponding April-June period of 2019-20.

The numbers are not comparable as the bank merged Oriental Bank of Commerce and United Bank of India with itself effective April 1, 2020, PNB said in a regulatory filing.

Total income rose to ₹24,292.80 crore during the June quarter of 2020-21, as against ₹15,161.74 crore in the same period of the previous fiscal.

On the assets front, the lender's gross non-performing assets (NPAs) fell to 14.11 per cent of gross advances at the end of June 2020, as against 16.49 per cent at the end of June 2019.

Net NPAs declined to 5.39 per cent as against 7.17 per cent earlier.

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Indian Overseas Bank(IOB) reports net profit in Q1

Indian Overseas Bank on Thursday posted a net profit of Rs 121 crore for June quarter 2020 mainly due to fall in bad loans. The state-owned lender posted a net loss of Rs 342.08 crore for the same quarter a year ago.

In March quarter, the bank had a profit of Rs 144 crore, Indian Overseas Bank said in a regulatory filing.

Total income of the bank during April-June 2020-21 rose to Rs 5,233.63 crore from Rs 5,006.48 crore in the same period of the previous fiscal, mainly due to increase in treasury income, it said.

Interest income stood at Rs 4,302 crore for the quarter as against Rs 4,336.39 crore a year ago mainly due to decrease in MCLR (marginal cost of funds based lending rate), it added.

Provisions and contingencies for the quarter were reduced to Rs 969.52 crore as against Rs 1,157.82 crore parked aside for the year- ago period, as the bad loan proportion of the bank came down significantly.

Gross non-performing assets (NPAs) were cut to 13.90 per cent of gross advances as on June 30, 2020 from 22.53 per cent by the same period of 2019. In value terms, gross NPAs or bad loans came down to Rs 18,290.84 crore from Rs 33,262 crore.

Likewise, net NPAs dipped to 5.10 per cent (Rs 6,080.89 crore) from 11.04 per cent (Rs 14,173.84 crore).

Total deposits increased to Rs 2.26 lakh crore as on June 30, 2020 as against Rs 2.21 lakh crore by June last year, it said. Total business was up at Rs 4.41 lakh crore from Rs 4.37 lakh crore.

Gross advances stood at Rs 1.32 lakh crore by June-end as against Rs 1.47 lakh crore by the year-ago same period, IOB said, adding the bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and BB and below rated accounts.

"The bank has also exited from accounts in the stressed sectors to improve the quality of assets," said the Chennai-headquartered lender.

The net interest margin -- interest earned minus interest expended -- improved to 2.08 per cent from 2.01 per cent.

IOB said it made recovery of Rs 1,991 crore during June 2020 quarter as against recovery of Rs 2,238 crore a year ago and the total fresh slippage (other than debits to existing NPA accounts) for the quarter stood at Rs 257 crore.

Provision coverage ratio improved to 87.97 per cent from 72.24 per cent, it said.

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Indian Bank Q1 results: Profit rises marginally, asset quality declines

State-owned Indian Bank on Friday reported a marginal 1 per cent rise in its standalone net profit at Rs 369.26 crore in the first quarter ended June 2020. Its net profit stood at Rs 365.37 crore in the same period a year ago. Sequentially, the lender had posted a net loss of Rs 217.73 crore in preceding quarter ended March 2020.

Total income of the bank almost doubled to Rs 11,446.71 crore during the April-June period of 2020-21 from Rs 5,832.12 crore in the year-ago same period, Indian Bank said in a regulatory filing.

With regard to June 2019 quarter and sequential January-March 2020 period numbers, the bank said the figures are related to standalone Indian Bank financials for pre-amalgamation period, hence not comparable with post amalgamation financials for the quarter ended June 30, 2020.

Allahabad Bank was merged into Indian Bank with effect from April 1, 2020.

Asset quality of the bank witnessed worsening with the gross non-performing assets (NPAs) rising to 10.90 per cent of the gross advances as on June 30, 2020 as against 7.33 per cent by the year-ago same period.

In value terms, the gross NPAs stood at Rs 39,965.02 crore as against Rs 13,511.21 crore.

Net NPAs or bad loans on the other hand came down to 3.76 per cent from 3.84 per cent. In value terms, they were higher at Rs 12,754.74 crore as on June 30, 2020 as against Rs 6,824.24 crore by June 2019.

Bank's provisioning for bad loans and contingencies for the June quarter of FY'21 rose to Rs 2,139.12 crore from Rs 794.82 crore parked aside for the same quarter of FY'20.

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Bank of Baroda posts net loss in Q1 due to higher provisions

Public sector lender Bank of Baroda (BoB) on Friday reported a net loss of ₹864 crore for the three months to June, owing to higher provisions for loans that are still standard.

The bank's loss came as a surprise to the market as a Bloomberg poll of 12 analysts had predicted a profit of ₹514 crore. The bank had posted a net profit of ₹710 crore in the same period last year.

BoB's provisions rose 71% on a year-on-year (y-o-y) basis to ₹5,628 crore. Of this, the bank said ₹1,811 crore was towards standard accounts, including ₹996 crore for loans under moratorium where the asset classification benefit was granted.

“Of the ₹1,811 crore, half is accounted for by the provisioning that has been done as per the RBI dispensation for assets that have not slipped on account of the moratorium. The other half of nearly ₹900 crore is on account of a government-guaranteed loan the bank has," said Sanjiv Chadha, chief executive, Bank of Baroda.

The total amount due for this loan is ₹7,600 crore, of that about ₹5,600 crore is a guaranteed by the government, said Chadha.

The bank's gross bad loan ratio or total bad loans as a percentage of total advances, fell 89 basis points (bps) y-o-y to 9.39%. Its asset quality improved in the June quarter as net NPA ratio also declined 112 bps from the same period last year.

The bank’s total loans under moratorium has declined to 21.4% at the end of the June quarter. This includes, 5.74% of loans less than ₹1 million and 15.69% more than ₹1 million.

Its net interest income, or the difference between the interest earned on loans and paid on deposits, increased 5% y-o-y to ₹6,816 crore in Q1 FY21. The bank's net interest margin (NIM), a measure of profitability, stood at 2.55%, down 8 bps from the sequential quarter.

On RBI’s recent announcement of the one-time loan recast window, Chadha said that the scheme was announced only a few days back and the bank has at review its portfolio.

“Maybe a few weeks from now, once we have done a review of our accounts in light of the RBI instructions, we should be able to give you a better answer," said Chadha, adding that the bank could also look at restructuring assets beyond this provision, if required.

The public sector lender's total advances grew 8.6% y-o-y to ₹7.36 trillion, led by retail loan growth of 13.5% y-o-y. Its total deposits grew 4.3% y-o-y to ₹9.34 trillion.

The bank's capital adequacy ratio under Basel III norms stood at 12.84% at the end of the June quarter.

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Central Bank of India Q1 Net profit rises 21%

Public sector Central Bank of India on Tuesday reported a 21 per cent rise in its consolidated net profit at Rs 147.21 crore in the quarter ending June. The bank had posted a net profit of Rs 121.61 crore during the same quarter a year ago.

Total income of the bank (consolidated) rose to Rs 6,751.86 crore during April-June quarter of 2020-21 as against Rs 6,518.37 crore in the same period of 2019-20, Central Bank of India said in a regulatory filing.

On a standalone basis, the net profit of the bank was up 14.5 per cent at Rs 135.43 crore during the first quarter of FY 2021 as against Rs 118.33 crore a year ago. Income increased to Rs 6,726.68 crore from Rs 6,493.55 crore.

The bank showed improvement in its asset quality as the gross non-performing assets (NPAs) or bad loans, as a percentage of gross advances as on June 30, 2020, fell to 18.10 per cent from 19.93 per cent as on June 30, 2019.

Likewise, the net NPA ratio came down to 6.76 per cent from 7.98 per cent.

This helped the bank cut down on its provisions for bad loans and contingencies, which stood at Rs 974.64 crore for June quarter FY 2021 as against Rs 1,034.78 crore a year-earlier period.

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South Indian Bank Q1 results: Reports net profit

South Indian Bank on Wednesday reported a 11 per cent rise in net profit at Rs 82 crore in June quarter of the current fiscal year.

The private sector lender had posted a net profit of Rs 73 crore in the corresponding quarter of fiscal year 2019-20.

Total income during the quarter under review rose 22 per cent to Rs 872 crore as against Rs 718 crore in the year-ago period, the bank said in a regulatory filing.

Interest income grew 10 per cent to Rs 587 crore from Rs 536 crore in the year-ago quarter.

Gross non-performing assets (NPAs) remained stable at 4.93 per cent of the gross advances at the end of June quarter as against 4.96 per cent a year ago.

Net NPAs declined to 3.09 per cent from 3.41 per cent a year ago.

Total deposits rose 8 per cent to Rs 82,469 crore during the quarter from Rs 76,544 crore, the bank said in an investor presentation.

Total CASA (current and savings account) deposits grew 12 per cent to Rs 22,179 crore as on June 30, 2020.

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Punjab & Sind Bank Q1 net loss widens on mounting bad loans

Punjab & Sind Bank (PSB) on Friday said its net loss widened to Rs 116.89 crore in the first quarter ended June 30, mainly due to mounting bad loans.

The city-headquartered lender had reported a net loss of Rs 30.28 crore during the same quarter a year ago. Sequentially, it had registered a net loss of Rs 236.30 crore in the fourth quarter last fiscal.

The total income of the bank also fell to Rs 1,954.39 crore in April-June, as against Rs 2,237.91 crore in same period of 2019-20, the bank said in a regulatory filing.

Interest income declined to Rs 1,800.02 crore from Rs 2,070.94 crore.

The lender witnessed deterioration in its asset quality as the gross non-performing assets (NPAs) swelled to 14.34 per cent of the gross advances as on June 30, 2020, compared to 12.88 per cent a year ago.

In absolute value terms, the gross NPAs or bad loans were at Rs 8,848.06 crore, compared to Rs 8,885.86 crore.Net NPAs, however, were down at 7.57 per cent (Rs 4,326.41 crore), as against 7.77 per cent (Rs 5,062.36 crore).

The bank''s provisions for bad loans and contingencies for June quarter of FY21 were raised to Rs 382.56 crore from Rs 334.53 crore.The bank''s provision coverage ratio and liquidity coverage ratio as on June 30, 2020 stood at 69.20 per cent and 220.80 per cent, respectively.

On COVID-19 related moratorium provisions, the bank has made provision of Rs 100 crore as per the RBI guidelines, which is more than minimum, it said.

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Bank of Maharashtra Q1 net profit jumps nearly 25%

Bank of Maharashtra on Thursday reported 24.6 per cent jump in net profit at Rs.101.02 crore for the first quarter of 2020-21 financial year as bad loans came down.

The Pune-headquartered lender posted a net profit of Rs.81.09 crore for the same quarter of 2019-20

Total income increased to Rs.3,264.81 crore during April-June, 2020-21 from Rs.3,191.88 crore in the year-ago same period, Bank of Maharashtra said in a regulatory filing.

The bank's provisions for bad loans or non-performing assets (NPAs) fell to Rs.408.91 crore during the reported quarter from Rs.1,037.44 crore in the year-ago period.

Total provisions including contingencies were at Rs.608.94 crore in the quarter under review as against Rs.920.72 crore in the same period of 2019-20.

The lender improved on its asset quality to a great extent by bringing down gross NPAs to 10.93 per cent of the gross advances as on June 30, 2020 from 17.90 per cent by end-June 2019.

In absolute value, gross NPAs stood at Rs.10,558.53 crore as against Rs.16,649.58 crore.

Net NPAs fell to 4.10 per cent ( Rs.3,677.39 crore) from 5.98 per cent ( Rs.4,856.27 crore).

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Canara bank Q1 net profit jumps 23%

 

Canara Bank on Wednesday reported 23.5% rise in standalone net profit at Rs.406.24 crore for June quarter 2020-21.

The public sector lender logged a net profit of Rs.329.07 crore in the same quarter of the previous financial year.Canara Bank, which amalgamated Syndicate Bank into itself with effect from April 1, 2020, however, said the earning figures are not comparable as these are related to standalone financials for pre-amalgamation period.

Total income in April-June 2020-21 increased to ₹20,685.91 crore from Rs.14,062.39 crore in the year-ago period, Canara Bank said in a regulatory filing.The bank's gross non-performing assets (NPAs) were up slightly at 8.84% of the gross advances as on June 30, 2020 as against 8.77% at June-end last year.

In absolute value, gross NPAs or bad loans stood at ₹57,525.52 crore as against ₹39,399.02 crore by the year-ago same period.Net NPA ratio, however, fell to 3.95% ( ₹24,355.23 crore) from 5.35% ( ₹23,149.62 crore).Provisions and contingencies for the first quarter were raised to ₹3,826.34 crore as compared to ₹1,899.13 crore in the year-ago period.

Of this, provisions for NPAs stood at ₹3,549.99 crore as against ₹2,282.70 crore a year ago.

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Bank of India(BoI) net profit jumped by 247% in Q1

Bank of India(BoI) reported a net profit of Rs 843.6 crore in the quarter ended June 2020, a rise of 2.5X as against Rs 242.6 crore in a year-ago period, due to lower provisions.

Net Interest Income (NII) in Q1FY21 was down marginally to Rs 3,481.1 crore from Rs 3,485.4 crore, compared to the same period a year ago.

Pre-provision operating profit increased to Rs 2,844.52 crore from Rs 2,271.35 crore in the same period last year.

Asset quality during the quarter improved significantly as gross non-performing assets (NPA) fell 6.1 percent to Rs 57,787.8 crore from Rs 61,549.9 crore while net NPA declined 7.3 percent to Rs 13,275 crore from Rs 14,320.1 crore, compared to the previous quarter.

Gross NPA as a percentage of gross advances fell by 90 bps to 3.6 percent from 3.9 percent and net NPA as a percentage of net advances decreased by 30 bps to 3.6 percent from 3.9 percent, on a sequential basis.

Total provisions in Q1FY21 declined to Rs 1512.07 crore from Rs 8,141.92 crore in the previous quarter. Provisions during Q1FY20 were at Rs 1,911.98 crore.

The Provision Coverage Ratio of the bank as on June 30, 2020, was 84.87 percent versus 83.74 percent as on March 31, 2020, and versus 77.18 percent as on June 30, 2019.

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State Bank of India (SBI) net profit up 81% in Q1, beats estimates

India’s largest public sector lender State Bank of India (SBI) on Friday reported a net profit of Rs.4,189.3 crore in the June quarter of FY21, up 81% year-on-year (y-o-y), owing to a rise in net interest income.

Its profit was also backed by a one-time gain of Rs.1,539.73 crore on sale of a 2.1% stake in SBI Life Insurance Company Ltd in June.

SBI’s net interest income (NII) or the difference between interest earned and expended, rose 16% on a y-o-y basis to Rs.26,641.5 crore. The bank’s profit came in substantially higher than Bloomberg consensus estimate of 15 analysts that pegged it at Rs.3,375 crore. In the June quarter of FY20, the bank had reported a net profit of Rs.2,312 crore.

While SBI’s total provisions rose 36% y-o-y to Rs.12,501 crore in the June quarter, its other income declined 0.7% y-o-y to Rs.7,957 crore in the same period. SBI said that during quarter it has made an additional provision of Rs.1,836 crore for covid-19 and it hold total provisions of Rs.3,008 crore for the pandemic as on 30 June.

Rajnish Kumar, chairman, SBI said that 9.5% of the bank’s loan book is under moratorium as on 30 June. “The bank has an outstanding term loan book of ₹16 trillion and 90.5% of this book is where two or more installments have been paid," said Kumar.

According to Kumar, most corporates and particularly those rated AA and AAA are in a position to service loans from September. “As of now the scrutiny of the accounts which has been done by the bank, indicates that most of these corporates will be able to repay from September, depending upon what happens to the moratorium in RBI policy. We believe that they are preserving cash," said Kumar.

SBI’s net interest margin (NIM), a key measure of profitability, improved 30 bps sequentially to 3.24% in the June quarter.

The bank’s asset quality improved in Q1FY21, with gross non-performing asset (NPA) ratio – gross bad loans as a percentage of total loans – declining 71 basis points (bps) sequentially to 5.44%. Among loan categories, while corporate bad loan ratio declined 586 bps y-o-y to 7.73%, its agriculture gross NPA ratio rose 229 bps in the same period.

In the June quarter, SBI saw slippages of ₹3,637 crore, down from ₹16,212 crore in the same period last year. Its recoveries and upgradations were lower in Q1 FY21 on a y-o-y basis to ₹3,608 crore.

“If there is a prolonged recession or a situation where recovery does not happen, corporate slippages may happen. But, the book of the bank and its composition, as compared to what happened in 2017-18, is very different," said Kumar.

Kumar said that the bank is expecting recoveries of ₹11,000 crore in the next two quarter of September and December.

“Recoveries were slightly muted in the first quarter because of the economic condition, but we are expecting it to significantly rise. As of now, given the moratorium that we have, we are not expecting any fresh addition to the slippages," he said.

SBI’s total deposits rose 16% y-o-y to ₹34.19 trillion and its total advances rose 6.6% y-o-y to ₹23.85 trillion. Its capital adequacy ratio under Basel III guidelines was at 13.4% as on 30 June. On home loans, auto loans and personal loans, Kumar said a U-shaped credit curve is visible where April 2020 was the bottom and is now showing an upward trend.

“Of course, these are early signs and we would like to wait for another quarter. As of now the trend with regard to sanctions and disbursements in these segments particularly is showing an upward trend," said Kumar.

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UCO Bank reports net profit in Q1

UCO Bank on Friday reported a net profit to Rs.21.45 crore for the June quarter on the back lower provisions and higher other income.

The state-owned lender had posted a net loss of Rs.601.45 crore in the same quarter last year.

Net interest income, or the difference between interest earned on loans and that paid on deposits, decreased 5.11% to Rs.1266.78 crore for the quarter ended 30 June against Rs.1334.97 crore reported during the same quarter of the previous fiscal.

Other income, which includes core fee income, rose 22.83% year-on-year to Rs.773.93 crore during the period under review from ₹630.08 crore.

The lender made provisions worth Rs.1180.37 crore, versus Rs.1802.89 crore during the same quarter of the preceding fiscal.

Gross NPAs, as a percentage of gross advances, were at 14.38% compared with 24.85% as of June 2019 and 16.77% as of March, 2020.

After provisions, net NPA ratio was at 4.95% against 5.45% during January-March and 8.98% in the year-ago quarter.

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IndusInd bank Q1 result : net profit falls 68%

Private sector lender IndusInd Bank on Tuesday said that it will raise Rs3,288 crore through a preferential issue of shares to its promoter Hinduja group and other institutional investors.

Promoter entities, including Hinduja Capital and IndusInd International, will infuse Rs.792 crore. Investors participating in the issue include Route One Fund and Route One Offshore, which will together contribute Rs.935 crore. The RBI had earlier approved an investment of up to 10% by Route One in IndusInd Bank. Other investors include ICICI Prudential Life Insurance, Tata Investment Corp Ltd and AIA Co Ltd. The preferential issue shares will be allotted at a price of Rs524 apiece.

Also announcing its Q1 results on Tuesday, the lender reported a 67.86% decline for June quarter profit, dented by higher provisions. The profit during the quarter declined to Rs.460.40 crore compared to Rs.1432.50 crore reported in the same quarter last year. Profit was lower than Rs.724.90 crore estimated by a Bloomberg poll of 16 analysts.

Net interest income, the difference between interest earned and interest expended, grew by 16.36% YoY to Rs.3309.19 crore in Q1 over Rs.2843.99 crore for the corresponding quarter last year.

Provisions during the quarter increased more than four-folds to Rs.2258.88 crore as against ₹430.62 crore a year ago.

Asset quality was almost stable with gross non-performing assets (NPAs) as a percentage of total loan rose to 2.53% as compared to 2.15% a year ago and 2.45% in the previous quarter ending March 2020. Net NPAs fell to 0.86% from 1.23% in the same quarter last year and 0.91% in the previous quarter.

“We have done a stress test end of June. After reviewing the businesses, our slippages will be 92 bps higher than what is normal as a consequence of covid and our incremental provision cost will be 65 bps against 53 bps which we had said in covid 1.0. The overall affected number is ₹1336 crore of which we had made ₹1206 crore of provision," said Sumanth Kathpalia, managing director and chief executive officer, Indusind bank

Non-interest income fell 8.66% to Rs.1519.19 crore as compared to Rs.1663.25 crore in Q1FY20.

Loan growth fell 4.2% to Rs.1.98 lakh crore at the end of June quarter compared to Rs.2.06 lakh crore at the end of previous quarter. Loan book under moratorium reduced to 16% as of June 2020 from 50% as of April 2020.

While the management avoided giving any targets on credit growth for the full year, they said that the bank will continue to be conservative and yet they see some pick up in loan growth in micro, small and medium enterprises (MSME) sector in the coming months.

“We are seeing green shoots in vehicle finance and we are going slow on unsecured portfolio," said

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Lakshmi Vilas Bank Q1 results: Reports net loss

Private sector Lakshmi Vilas Bank has slipped into the red after posting net profit for the March quarter.

The bank on Thursday reported net loss of Rs 112 crore for the June quarter, and said its tier 1 capital has turned negative, which prompted the auditors cast doubts if it can continue as a going concern. The result was announced after market hours.

Its tier 1 capital ratio is at a negative 1.83%, limiting its ability to lend, as against the minimum requirement of 8.875%. Capital adequacy ratio is at 0.17% compared with 6.46% a year ago.

The bank, which has been under Reserve Bank of India's prompt corrective action since September last year, has seen a steady decline in its deposit base since then and rise in non-performing asset (NPA) ratios. Its deposit shrunk 27% to Rs 21161 crore at the end of June.

The bank reported only Rs 9 lakh operating profit for the quarter. In FY20, it had incurred a loss of Rs 836 crore.

"Based on their internal assessment and the likely capital infusion, the bank will be able to realise its assets and discharge its liabilities in its normal course of business and, hence, the financial results have been prepared on a going concern basis," chartered accountants Chandrasekar LLP said in a report submitted to the bank’s board.

"The said assumption of going concern is dependent upon the bank's ability to achieve improvements in liquidity, asset quality and solvency ratios, augment its capital base and mitigate the impact of Covid-19, and thus a material uncertainty exists that may cast a significant doubt on the bank's ability to continue as a going concern," the report said.

Its gross NPA ratio jumped to 25.4% at the end of June from 17.3% a year ago, with the net ratio deteriorating to 9.64% from 8.3% over the same period. 

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IDFC First Bank Q1 results: Net profit rises

Private lender IDFC First Bank saw its net profit rise to Rs 93.5 crore at the end of June compared with a loss of Rs 617 crore during the same period last year. At the end of June, the bank had provided moratorium to about 28% of its customers based on the value, out of which 23% is in retail assets including rural portfolio and 35% is in the wholesale financing portfolio.

“We have liberally provided moratorium to customers who sought it, and our moratorium was about 45% last quarter, this has reduced to 28% now, which we expect to fall below 10% by August 31, 2020, based on the strong improving trend in collections we are experiencing,” said V Vaidyanathan, MD, IDFC FIRST Bank.

The provision at the end of the June quarter was at Rs 764 crore as compared to Rs 1,281 crore during last year and as compared to Rs. 679 crore in Q4 FY20. In the first phase of moratorium, the Bank took coronavirus related provision of Rs. 225 crore, during the June quarter the lender created additional coronavirus related provision of Rs. 375 crore to further strengthen the balance sheet.

The gross NPA of the bank reduced to 1.99% for the quarter under review, this was 2.66% same period a year ago. Net NPA stood at 0.51%. Apart from the NPA, the identified stressed asset pool of the bank, reduced by Rs. 943 crore during the last financial year. This stressed pool stood at Rs. 3,195 crore as of 30 June 2020 against which the Bank has done provisioning of Rs. 1,668 crore, 52% of the pool.

The advances book contracted by nearly 7.5% and stood at Rs 1.04 lakh crore versus Rs 1.12 lakh crore same period last year. The bank has focused on growing the retail loan book and decreased the wholesale loan book including infrastructure loans to reduce concentration risk on the portfolio. Out of the total book, retail loans grew by 26% to Rs. 56,043 crore as on June 30, 2020, compared to Rs. 44,642 crore as on June 30, 2019. 

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ICICI Bank Q1 net profit rise 36%

Private lender ICICI Bank on Saturday reported 36% increase in standalone net profit at ₹2,599 crore for the quarter ending 30 June, 2020. The bank had reported net profit of ₹1,908 crore in the year-ago period.

Total income during the quarter rose to ₹26,066 crore from ₹21,405.50 crore a year earlier, the bank said in a regulatory filing.

ICICI Bank had in June sold 3.96 per cent stake in arm ICICI Lombard for ₹2,250 crore while it sold 1.5 per cent stake in ICICI Prudential Life for ₹840 crore.

"During Q1FY21, the Bank sold equity shares representing 3.96% in ICICI Lombard General Insurance Company Limited and 1.5% in ICICI Prudential Life Insurance Company Limited for a total consideration of ₹3,092.93 crore. The sale resulted in net gain (after sale related expenses) of ₹3,036.29 crore in standalone financial results and ₹2,715.87 crore in consolidated financial results for Q1FY21," the bank said.

"The lockdown measures have significantly impacted economic activities in the quarter. Current estimates of growth in India's gross domestic product by various agencies and analysts indicate a contraction in the economy in fiscal 2021. During Q1FY21, the loan growth was impacted due to lower credit demand and fee income declined due to lower borrowing and investment activity by customers and lower consumer spends. The slowdown in the economy is expected to result in higher additions to non-performing loans, increase in provisions, lower loan growth and fee income," the bank said in a regulatory filing.

On a consolidated basis, its net profit for the April-June period improved by 24 per cent at ₹3,117.68 crore as against ₹2,513.69 crore in the corresponding quarter of the previous fiscal.

The bank's income on a consolidated basis rose to ₹37,939.32 crore in the said quarter from ₹33,868.89 crore in April-June 2019.

During Q1FY21, the bank has made an additional Covid-19-related provision amounting to ₹5,550 crore.

The lender witnessed an improvement in asset quality as gross non-performing assets (NPAs) fell to 5.46%t of the gross advances by the end of June 2020, from 6.49% a year ago.

Net NPA ratio decreased from 1.41% in March quarter to 1.23% in June quarter and 1.77% in year-ago period.

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Axis bank Q1 profit falls 19%

The country's third-largest private sector lender Axis Bank has reported an 18.8 percent year-on-year decline in standalone profit for the June quarter, impacted by lower other income and higher provisions.

Profit during the quarter declined to Rs 1,112.17 crore compared to Rs 1,370.08 crore in the corresponding period last year.

Net interest income (NII) grew by 19.5 percent year-on-year to Rs 6,985.3 crore in the quarter, with a strong loan growth of 17 percent (including TLTRO investments) and deposits growth of 19 percent on quarterly average basis (QAB).

The private lender's savings account deposits grew 15 percent YoY, current account deposits 8 percent and retail term deposits (RTD) were up 27 percent on QAB basis, while including TLTRO (Targeted Long Term Repo Operations) investments, corporate loans grew 26 percent and retail loans 16 percent.

Other income or non-interest income (comprising fee, trading profit and miscellaneous income) for Q1FY21 declined 33.1 percent to Rs 2,587 crore YoY as fee income fell 38 percent YoY to Rs 1,651 crore, the bank said. The bank attributed the decline in fees to lower business volumes and velocity of throughput of transactions.

Pre-provision operating profit (PPoP) declined 0.8 percent to Rs 5,844.4 crore compared to the corresponding quarter of the last fiscal.

"Adjusted for accounting policy changes and NII reserves created during the quarter, NII, operating profit and PAT for the quarter would have been Rs 7,100 crore, Rs 6,151 crore and Rs 1,626 crore, respectively, growing by 22 percent, 4 percent and 19 percent YoY, respectively," Axis Bank said in its BSE filing.

Asset quality has seen improvement on sequential as well as yearly basis. Gross non-performing assets as a percentage of gross advances declined 14 bps QoQ to 4.72 percent and net NPAs dropped 33 bps QoQ to 1.23 percent in June quarter 2020.

Axis Bank said it recognised slippages of Rs 2,218 crore during Q1FY21, compared to Rs 3,920 crore in Q4FY20.

"Slippages from the loan book were at Rs 2,011 crore and that from investment exposures stood at Rs 207 crore. Corporate slippages stood at Rs 1,355 crore. Recoveries and upgrades from NPAs during the quarter were Rs 608 crore while write-offs were Rs 2,284 crore," it added.

Provisions and contingencies were higher by 15.8 percent to Rs 4,416.42 crore at the end of June quarter 2020, but were lower by 42.9 percent compared to the March quarter.

The bank said it had made incremental provisions of Rs 733 crores in Q1 FY21 towards COVID-19. "In June 2020, the bank holds in aggregate additional provisions of Rs 6,898 crore. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations, and the 0.4 percent standard asset provisioning requirement on standard assets."

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DCB Bank Q1 profit jumps 16.63%

DCB Bank Ltd on Tuesday said its first quarter net profit rose 16.63% on the back of higher net interest income and other income.

The bank posted a net profit of Rs.81.06 crore for the three months ended 30 June compared to Rs.69.50 crore in the year-ago period. Profit was lower than Rs.93.11 crore estimated by a Bloomberg poll of 11 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 11.64% to Rs.304.75 crore from Rs.272.97 crore in the corresponding period last year.

Other income, which includes core fee income, rose 4.74% to Rs.86.76 crore in the three months from Rs.82.83 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 1.96% in the June quarter compared with 1.84% in the March quarter and 1.86% in the year-ago period.

Provisions during the quarter increased 22.3% to Rs.40.64 crore as against Rs.33.23 crore in the year-ago quarter. In Jan-Mar, the bank had set aside Rs.34.78 crore in provisions.

Post-provision, the net NPA ratio was at 0.81% against 0.65% in the March quarter and 0.72% in the year-ago period.

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