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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