Central Bank of India Q2 result, Posts Rs642 crore loss as bad loans rise

Central Bank of India on Friday reported a net loss of Rs641.82 crore for the quarter ended 30 September because of higher provisions against bad loans and a drop in net interest income.

The state-owned lender had reported a net profit worth Rs112.87 crore in the same quarter a year ago.

The loss would have been bigger but for a Rs164.5 crore writeback on tax provisions. In the same quarter last year, Central Bank of India had provided Rs89.29 crore for tax.

Provisions against bad loans rose sharply to Rs1,161.21 crore from Rs645.44 crore last year. Gross non-performing assets (NPAs) rose 2.4% from the preceding quarter to Rs25,718 crore.

Gross NPAs made up 13.7% of the loan book, up from 13.52% in the June quarter. Net NPAs were stable sequentially at 8.17% of the loan book.

Net Income Income (NII), or the difference between interest earned on loans and those paid on deposits, came in at Rs1,693.4 crore, down 11.5% from a year ago. Non-interest income rose to Rs776.64 crore from Rs473.25 crore a year ago.

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Union Bank of India Q2 result, Profit dips 73% at Rs176 crore

Public sector lender Union Bank of India on Friday said its net profit fell by 73.2% to Rs176.67 crore for the second quarter ended 30 September, 2016, due to higher provisions for bad loans. The bank had reported a net profit of Rs658.16 crore for the same quarter in the previous fiscal.

“Total income has increased to Rs9,347.58 crore for the quarter ended 30 September, 2016, from Rs9,100.90 crore for the same quarter a year ago,” it said in a regulatory filing.

Bank’s provisions for bad loans and contingencies spiked over three-times to Rs1,620.29 crore for the quarter from Rs432.51 crore in the year-ago period. The shares of Union Bank of India closed at Rs134.35, 1.97% down on BSE on Friday.

The gross non-performing assets (NPAs) increased to 10.73% of the gross loans as on September 2016, from 6.12% year ago. Value-wise, gross NPAs were Rs29,862.05 crore, up from Rs15,541.17 crore.

Net NPAs or bad loans were 6.39% of the net advances as on 30 September as against 3.39% year ago. In absolute terms, net NPAs stood at Rs16,947.89 crore as on September 2016, compared with Rs8,334.86 crore from a year earlier.

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State Bank of Hyderabad Q2 result, Posts net loss of Rs776.64 crore

State Bank of Hyderabad reported a net loss of Rs776.64 crore for the quarter ended 30 September, due to higher provisions against bad loans. The bank reported a net profit of Rs375.31 crore in the same quarter a year earlier.

Provisions and contingencies surged 755% to Rs2,074.94 crore in the July-September quarter from Rs242.70 crore a year earlier. The loss during the second quarter was restricted due to a tax write-back of Rs197.12 crore against tax expenses of Rs189.87 crore a year ago.

This is one of the biggest losses reported by an associate bank of the State Bank of India (SBI). In the April-June period, State Bank of Travancore had reported a loss of Rs743 crore due to deteriorating asset quality concerns.

The drop in profitability of associate banks might be a result of the impending merger with State Bank of India, which has been approved by all of them. In August, the respective boards of SBI, State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad and Bharatiya Mahila Bank had all approved the mega merger, which will create a large banking conglomerate in India. According to a Mint analysis, this will put SBI in the ranks of the top 50 lenders in the world.

The associate banks reported large losses as a direct result of the asset quality review (AQR) conducted by RBI in the October-December period last year, SBI management had stated earlier.

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Karur Vysya Bank Q2 result, Profit declines 11%

Karur Vysya Bank Limited (KVB) saw second quarter profit fall 11.2% to Rs 126.31 crore from last year as expenses at the private lender rose.

Despite the bank's total income increasing 2.6% to Rs 1,611 crore, expenses shot up by 6.3% to Rs 1,291.3 crore. Karur Vysya saw its bad loans increase for the second quarter, but set aside less money to cover its losses.

Gross non-performing assets (NPAs) as a percentage of advances rose to 2.29% from 1.79%; and the bank decreased its Q2 provision against loan losses 5.4% to Rs 119.2 crore from Rs 126 crore in the year-ago.

The bank's Basel II capital adequacy ratio (CAR) also reduced to 11.48% from 13.10% last year. Return on assets - which indicates a bank's profitability measured against its assets - fell to 0.86% from 1.03%.In its financial statement, Karur Vysya said it has made provisions for Rs 35.52 crore; which is 15% of the food credit availed by the state government of Punjab on March 31, 2016. During the half year, excess provision of Rs 9.43 crore was written back.

Securities amounting to Rs 106.76 crore were shifted to held for maturity (HTM) category from available for sale (AFS). And Rs 406.31 crore was shifted to AFS from HTM, resulting in a depreciation of Rs 0.93 crore.

The bank also sold bad loans to asset recovery companies of which Rs 126.38 crore was charged for this fiscal; amounting to Rs 63.19 crore for the current quarter. The balance carried over was Rs 311.45 crore, said the bank.

Karur Vysya also set aside Rs 41.83 crore to cover frauds this fiscal; amounting to Rs 15.55 crore for the current quarter).

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Vijaya Bank Q2 result, Profit jumps 34% at Rs154.55 crore

State-owned Vijaya Bank reported 34.1$ increase in net profit to Rs154.55 crore in the second quarter of the current fiscal despite higher provisioning for bad loans.

The bank’s net profit in the July-September quarter of 2015-16 was Rs115.29 crore. Its total income rose to Rs3,516.57 crore during the second quarter of 2016-17 as against Rs3,202.89 crore from the same period a year ago, Vijaya Bank said in a regulatory filing.

Provisions for bad loans and contingencies were increased by the bank to Rs389.82 crore for the quarter under review, 42.5% higher than Rs273.47 crore in the same period a year ago.

Asset quality of the bank slipped as gross non-performing assets (NPAs) or the bad loans rose to 7.07% of the gross advances as of September 2016, as against 3.98% a year earlier. Likewise, net NPAs too increased to 5.10% of the net advances, from 2.84%. 

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Canara Bank Q2 result, Profit tanks 32% to Rs 357 cr

Public sector lender Canara Bank's second quarter earnings met analysts' expectations on Wednesday. Performance on yearly basis continued to be weak but the bank improved it on sequential basis. 

Profit fell 32.5 percent year-on-year to Rs 356.91 crore on higher provisions but increased 56 percent quarter-on-quarter. Net interest income during the quarter declined 7.7 percent to Rs 2,442.35 crore compared with year-ago period but was up 5.8 percent compared with previous quarter. 

Worst is almost over and the bank should control NPA at 9 percent by March 2017, Rakesh Sharma, MD and CEO said in an interview with CNBC-TV18. Non-interest income jumped 47.2 percent to Rs 1,781.77 crore and operating profit grew by 10.1 percent to Rs 2,140.77 crore on yearly basis. 

According to analysts polled by CNBC-TV18, profit was expected at Rs 320 crore and net interest income at Rs 2,452.7 crore for the quarter. Asset quality was steady during the quarter with net non-performing assets remained unchanged at 6.69 percent on sequential basis, though gross NPA increased marginally to 9.82 percent from 9.71 percent QoQ. 

In absolute terms, gross NPAs stood at Rs 33,315 crore in July-September quarter, higher by 3 percent over previous quarter and net NPA grew by 1.8 percent to Rs 21,887 crore QoQ. 

Provisions for bad loans jumped 30.8 percent year-on-year and 6.2 percent quarter-on-quarter to Rs 1,586 crore in the quarter ended September 2016.

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Syndicate Bank Q2 result, Profit drops 75%

Syndicate Bank on Wednesday reported 75.2% decline in its net profit for the September quarter due to higher provisioning towards bad loans. Fall in net profit was also due to drop in net interest income and rise in employee cost.

Net profit for the quarter was Rs.82.42 crore as compared to Rs.332.37 crore a year ago. According to estimates of two Bloomberg analysts, the bank was expected to post a net profit of Rs.157.40 crore.

Net interest income (NII), or the core income a bank earns by giving loans, fell 3.2% to Rs.1,544.48 crore in the September quarter from Rs.1,594.75 crore last year.

Other income increased 28.84% to Rs.791.87 crore fromRs.614.61 crore in the same period last year. Employee cost rose 46.7% from a year ago to Rs.878.28 crore.

Gross non-performing assets (NPAs) at Syndicate Bank rose 4.03% to Rs.16,056.73 crore at the end of the September quarter from Rs.15,434.26 crore in the June quarter. On a year-on-year basis, gross NPAs jumped 107.60% fromRs.7,734.41 crore. As a percentage of total loans, gross NPAs were at 7.72% at the end of the September quarter as compared to 7.53% in the previous quarter and 3.72% in the year-ago quarter.

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HDFC Bank Q2 result, Profit rises 20% to Rs 3455cr

India's second largest private sector lender HDFC Bank   's second quarter profit met analysts' expectations, rising 20.4 percent year-on-year to Rs 3,455.3 crore. 

Net interest income, other income, operating profit and lower provisions boosted profitability while asset quality remained stable, though net interest margin declined sequentially. Net interest income, the difference between interest earned and interest expended, grew by 19.6 percent YoY to Rs 7,993 crore in July-September quarter, which missed estimates due to lower-than-expected loan growth. 

Loan growth for the quarter stood at 18.1 percent against analysts' estimates of 22-23 percent. Net interest margin remained steady at 4.2 percent on yearly basis but sequentially declined 20 basis points from 4.4 percent. 

According to analysts polled by CNBC-TV18, profit was estimated at Rs 3,443 crore and net interest income at Rs 8,214.8 crore for the quarter. Provisions for bad loans dropped 13.5 percent year-on-year to Rs 749 crore in Q2 but sequentially increased 10 percent. 

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