Federal Bank Q3 results: Net profit rises by 29%

 

Private sector lender Federal Bank reported a 29 per cent rise in net profit at Rs 522 crore for the December quarter as against Rs 404 crore in the year-ago period owing to a fall in provisions by nearly half.

Operating profit fell 4.4 per cent at Rs 914 crore against Rs 956 crore.

Net interest margin however improved 7 basis points sequentially to 3.27 per cent while net interest income rose 7 per cent at Rs 1539 crore in the quarter under review against Rs 1437 crore in the year-ago period.

The lender's gross non-performing assets stood at 3.06 per cent at the end of December, compared with 2.71 per cent a year back. Gross NPA was 3.24 per cent at the end of September 2021 quarter. Net NPA was at 1.05 per cent as against 1.12 per cent three months back and 0.6 per cent a year back.

Provision was lower at Rs 214 crore for the December quarter compared with Rs 414 crore in the year ago period. The provision coverage ratio fell to 79.62 per cent against 86.32 per cent a year earlier.The bank's advances grew by 12% year-on-year to Rs 1.41 lakh crore.

Read More

Punjab National Bank(PNB) Q1 net profit zooms 232% YoY

 

 Punjab National Bank(PNB)'s net profit for the quarter ended 30 June, 2021, zoomed 232% to Rs.1,023 crore, it said on Monday. The lender had posted a net profit of Rs.308 crore in the year-ago period.

The lender's Net Internet Income (NII) rose 6.5% to Rs.7,226 crore as against Rs.6,782 crore in the year-ago period.PNB's gross NPA marginally rose to 14.33% from 14.12% QoQ while the net NPA came at 5.85% as against 5.73% in the previous quarter (Q4F21).

The operating profit of the bank increased during the quarter to Rs.6,098.65 crore from Rs.5,280 crore. Its operating expenses during the quarter came down to Rs.4,722 crore from Rs.5,156 crore in the year-ago period. The total recovery, including cash recovery and up-gradation, during Q1FY22 improved to Rs.8,270 crore, PNB said.

The lender said it has availed dispensation for deferment of provision of Rs.392.69 crore in respect of frauds, as per RBI norms. Accordingly, an amount of Rs.98.17 crore has been charged to the profit and loss account and Rs.294.52 crore has been deferred to subsequent quarters. "Further, out of the amount of Rs.1,013.10 crore, which was debited to other reserve in Q4FY21, an amount of Rs.606.14 crore has been charged to profit and loss account and remaining Rs.406.96 crore will be charged to profit and loss account in subsequent quarters," it said.

On a consolidated basis, PNB reported a net profit of Rs.1,080.30 crore in the quarter ended June 2021, as against Rs.475.19 crore a year ago. The consolidated financial result of the bank comprises five subsidiaries and 15 associates. The capital adequacy ratio of the bank was at 15.19 per cent by June quarter-end, compared to 12.63 per cent a year ago. Provision coverage ratio works out to 80.26 per cent by June 30, 2021, it said.

PNB said it is holding a total provision of Rs.8,397.97 crore, as per RBI list-1 and list-2, with regard to accounts admitted under Insolvency & Bankruptcy Code (IBC) as of June 30, 2021. This provisioning is 100 per cent of the gross NPA advances, it added.

On the bank's quarterly performance amid Covid-19, the lender stated, "The extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive. The major identified challenges for the Bank would arise from eroding cash flows and extended working capital cycles. The Bank is gearing itself on all the fronts to meet these challenges."

Read More

Punjab & Sind Bank Q1 results: reports net profit

 

State-owned Punjab & Sind Bank on Thursday reported a net profit of Rs 173.85 crore for the first quarter ended June 30. The bank had posted a net loss of Rs 116.89 crore a year ago. Sequentially, it had registered a net profit of Rs 160.79 crore in the March 2021 quarter.

The total income of the bank during Q1FY22 rose to Rs 2,039.61 crore from Rs 1,954.39 crore in Q1FY21, Punjab & Sind Bank said in a regulatory filing.Provisions for bad loans and contingencies for the quarter fell to Rs 77.30 crore from Rs 382.56 crore in the year-ago period.

The bank's asset quality showed an improvement and the gross non-performing assets (NPAs or bad loans) came down to 13.33 per cent of the gross advances as of June 30, 2021, against 14.34 per cent a year ago.In absolute value, the net NPAs stood at Rs 9,054.96 crore, up from Rs 8,848.06 crore.

The net NPAs ratio fell to 3.61 per cent (Rs 2,206.70 crore), from 7.57 per cent (Rs 4,326.41 crore).The bank said it has kept the account of Delhi Airport Metro Express Pvt Ltd (DAMEPL) as standard, in accordance with the Supreme Court order and RBI guidelines.

The bank has not treated an outstanding of Rs 166.63 crore towards DAMEPL as NPA, it said. It has held the provisions of Rs 92.24 crore against this, higher than the required Rs 49.59 crore.The provision coverage ratio of the bank stood at 84.22 per cent as of June 30, 2021, and the liquidity coverage ratio at 215.52 per cent.

Read More

State Bank of India (SBI) posts record quarterly profit in Q1

 

India's largest lender State Bank of India (SBI) on Wednesday reported a 55.3% rise in its Q1 standalone net profit of Rs.6,504 crore as compared to Rs.4,189 crore in the same quarter last year. The bank's net interest income, the difference between interest earned and expended, witnessed a growth of 3.7% at Rs.27,638 crore as against Rs.26,641 crore year-on-year (YoY).

Domestic net interest margin (NIM) stood at 3.15%. SBI's other income surged in Q1 to Rs.11,802.7 crore as compared to Rs.7,957.5 crore in the year-ago quarter.

On the asset quality front, the gross non-performing asset (NPA) stood at 5.32% versus 4.98% on a sequential basis whereas the net NPA came at 1.77% against 1.50% quarter-on-quarter (QoQ). Slippages, or the fresh addition of bad loans, jumped more than four-fold to Rs.15,666 crore.

The provisions and contingencies dipped to Rs.10,052 crore from Rs.11,150 crore QoQ and Rs.12,501 crore YoY. The total provision for COVID-19 uncertainty as on June 30 is Rs.9,065 crore. Provision Coverage Ratio as on June 30 is 85.93% (87 .75% as on March 31).

''The spread of COVID-19 pandemic across the globe has resulted in decline in economic activities and movement in financial markets. ln this situation, Bank is gearing up itself on all fronts to meet the challenges. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis. Major challenges for the Bank could be from extended working capital cycles, fluctuating cash flow trends and probable inability of the borrowers to meet their obligations against the loans timely,'' SBI said in the filing.

The bank is proactively providing against the challenges of likely stress on the Bank's assets. A definitive assessment of the impact of COVID-l9 is dependent upon circumstances as they evolve in the subsequent period, it added.

Read More

Bank of Baroda(BoB) posts net profit in Q1; NII rises 16%

 

State-owned Bank of Baroda (BoB) on Saturday reported a standalone profit of Rs 1,208.63 crore during the quarter ended June 2021, helped by decline in bad loans provisioning.

The bank had posted a net loss of Rs 864 crore in the same quarter a year ago.

Total income moderated marginally to Rs 20,022.42 crore from Rs 20,312.44 crore in the same quarter a year ago, BoB said in a regulatory filing.

The bank's asset quality improved with the gross non-performing assets (NPAs) falling to 8.86 per cent of the gross advances as on June 30, 2021, from 9.39 per cent by the end-June 2020. However, net NPA ratio rose to 3.03 per cent from 2.83 per cent as on June 30, 2020, the bank said.

As a result, total provisions and contingencies for the quarter eased to Rs 4,111.99 crore from Rs 5,628 crore a year ago.

Provisioning Coverage Ratio including floating provision stood at 83.14 per cent as on June 30, 2021.

A penalty of Rs 41.75 lakh has been imposed on the bank by Reserve Bank of India for the quarter ended June 30, 2021, it said.

As per the Reserve Bank of India (RBI) circular, the bank has opted to provide the liability for frauds over a period of four quarters, it said.

Accordingly, the carry forward provision as on June 30, 2021 is Rs 349.45 crore which is to be amortised in the subsequent quarters by the bank, it said.

Read More

IDFC First Bank posts Q1 loss on higher Covid provisioning

Private lender IDFC First Bank on Saturday reported a net loss of Rs 630 crore in the April-June quarter due to provisioning measures for cushioning the impact of the second wave of the Covid-19 pandemic.The bank had posted a net profit of Rs 93.55 crore in the year-ago quarter ended in June 2020 and that of Rs 127.81 crore in the previous quarter ended in March 2021.

"Net loss of Rs 630 crore for Q1FY22 is because of prudent provisions for Covid wave 2.0. Covid provision pool increased from Rs 375 crore to Rs 725 crore during the current quarter on a prudent basis to act as a cushion for Covid impact," IDFC First Bank said in a release.The bank expects to collect a reasonable proportion of these dues in due course, it added.

Total income (net of interest expense) grew by 36 per cent year-on-year to Rs 3,034 crore in Q1FY22, driven by the growth in NII and fee income, the bank said. Its total income during Q1FY21 stood at Rs 2,229 crore in June 2020 quarter.

The bank said its net interest margin (NIM) -- the difference of interest earned and expended -- was the highest ever at 5.51 per cent during the reported quarter. The NIM was 4.86 per cent in year ago quarter.The net interest income (NII) rose by 25 per cent year-on-year to Rs 2,185 crore.On the asset front, bank's gross and net non-performing assets (NPAs) were at 4.61 per cent and 2.32 per cent respectively as of June 30, 2021.The NPA ratios were up from 1.99 per cent and 0.51 per cent respectively, from year ago period.

"The GNPA and NNPA include impact of 84 bps (basis points, which is one hundredth of a percentage) and 71 bps respectively on account of one Mumbai based infra toll account which slipped during the quarter. The bank expects no material economic loss in this account eventually as this is an operating toll road and is only delayed."

Bank deposits were up by 36 per cent to Rs 84,893 crore. The retail loan book of the lender increased to Rs 72,766 crore as on June 30, 2021 from Rs 56,043 crore.The year-on-year growth of the retail loan book was 27 per cent excluding Emergency Credit Guarantee Line loan book of Rs 1,645 crore. However, it declined by 1.2 per cent on a sequential basis. The wholesale loan book fell by 15 per cent to Rs 34,232 crore from Rs 40,275 crore.

Capital adequacy ratio stood at 15.56 per cent with CET-1 (common equity tier-1) ratio at 14.86 per cent. Average liquidity coverage ratio (LCR) was at 166 per cent for Q1FY22."Within just two years we have made tremendous progress at the bank. Our CASA (current account savings account) ratio is high at 50.86 per cent despite reducing savings account interest rates by 200 bps recently, which points to the trust customers have in our bank and service levels.

"Because of our low cost CASA, we can now participate in prime home loans business, which is a large business opportunity," V Vaidyanathan, Managing Director and CEO, IDFC First Bank, said. Regarding the loss during the quarter, he said the bank has made prudent provisions for Covid second wave.

"We expect provisions to reduce for the rest of the three quarters in FY22. We guide for achieving pre-Covid level gross and net NPA, with targeted credit loss of only 2 per cent on our retail book by Q4FY 22 and onwards, assuming no further lockdowns," he said further.

Read More

Indian Overseas Bank(IOB) Q1 results: Net profit doubles as provisions decline

 

Chennai-based public sector lender Indian Overseas Bank (IOB) on Tuesday reported a 170% jump in its net profit to `327 crore for the first quarter of this fiscal as compared to Rs 121 crore in the corresponding quarter last fiscal.

The bank has attributed the growth in the bottom line to an increase in other income and a robust recovery during the quarter. The total income of the bank stood at Rs 5,155 crore as against Rs 5,234 crore in the corresponding period last year.

Speaking to media persons in a virtual interaction, Partha Pratim Sengupta, MD & CEO, IOB, said after making losses for 18 quarters, the bank has started making profits since the March 2020 quarter, and this quarter it added around Rs 200 crore to the profit. “We have been making profits and have fulfilled all the requirements to come out of the prompt corrective action. The regulator is examining as we have furnished all the details,” he said, adding that it is now for the RBI to take a call on it.

Interest income of the bank stood at Rs 4,063 crore for the quarter as against Rs 4,302 crore, while non-interest income was at Rs 1,092 crore as compared to Rs 932 crore due to increase in other income.

He said the bank could make a decent recovery in the first quarter despite the impact of the second wave of the pandemic. “While fresh slippage was at Rs 1,158 crore, cash recovery was itself to the tune of Rs 1,130 crore, offsetting the impact of bad assets,” he said.

IOB’s gross NPAs stood at Rs 15,952 crore, with a ratio of 11.48% as against 18,291 crore with a ratio of 13.90%. It achieved a total reduction in NPAs of Rs 1,616 crore in Q1FY22 as against the NPA reduction of Rs 1,969 crore.

Net NPAs were at Rs 3,998 crore, with a ratio of 3.15% as against Rs 6,081 crore, with a ratio of 5.10%, a decline of Rs 2,083 crore in absolute terms. Provision coverage ratio improved to 91.36% from 87.97%.

Sengupta said the bank has approval to raise Rs 2,000 crore as tier I capital, Rs 1,000 crore as tier II bonds and will look to raise funds as and when required. “As of now, we are comfortably capitalised with CRAR of 15.48%. First we will try to raise the tier II bonds by November, and later on will decide when to go for tier I funds,” he said.

On the advances growth, he said the bank will go for an incremental increase of Rs 14,000 crore to Rs 15,000 crore, over the last year. “While retail, agri and MSME sector will be our focus area, corporate book needs to be also grown. Though we will be cautious, we will go for rated corporate entities,” he said.

Read More

Bank of India(BoI) Q1 net profit down 14.7%

Bank of India's (BoI's) net profit for June 2021 quarter fell by 14.7 per cent on a year-on-year basis, to Rs 720 crore on higher provisions for bad loans and standard assets.

It had posted a net profit of Rs 844 crore in the same quarter last year (Q1FY21).

The bank said in a statement its net interest income (NII) fell in Q1FY22 to Rs 3,145 crore from Rs 3,481 crore in the quarter ended June 2020 (Q1FY21). Net interest margin fell to 2.16 per cent for Q1 against 2.48 per cent in the year-ago period.

The non-interest income rose 39.25 per cent YoY to Rs 2,376 crore, from Rs 1,707 crore in Q1FY21.

Asset quality profile improved with gross non-performing assets down to 13.51 per cent in June, from 13.91 per cent last year. Net NPA also fell to 3.35 per cent, from 3.58 per cent in June 2020. Its provision coverage ratio improved to 86.17 per cent in June 2021, from 84.87 per cent a year ago.

Its provisions for bad and non-performing assets rose to 873 crore in Q1Fy22, as against Rs 767 crore in Q1FY21. Those for standard assets rose to Rs 898 crore from Rs 759 crore.

Advances growth was flat to Rs 4.15 trillion. The retail loan portfolio rose by 10.61 per cent (y.o.y) to Rs 1.25 trillion as of June 2021.

Its deposits grew from Rs 5.95 trillion in June 2020 per cent to Rs 6.23 trillion in June 2021.

The capital adequacy ratio stood at 15.07 per cent in June 2021 up from 12.76 per cent at the end of June 2021.

Read More