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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