Union Bank of India posts net loss in Q2 due to higher provisioning for bad loans

Union Bank of India on Thursday said its second quarter net loss stood at Rs1,194 crore on account of higher provisioning.

The bank posted a net loss of Rs1,194 crore for the quarter against a profit of Rs139 crore a year ago.

Loss was higher as Bloomberg poll of 7 analysts had estimated a loss of Rs293.5 crore.

"The primary reason for the loss is divergence in provisions of Rs1,587 crore for FY19 as specified by the Reserve Bank of India (RBI). This was taken into account in this quarter," said Rajkiran Rai G., chief executive, Union Bank of India.

The bank’s loans to Dewan Housing Finance (DHFL) of around Rs2,000 crore has turned NPA in the third quarter of FY20 or in the current quarter, he added.

Net interest income, or the difference between interest earned on loans and that paid on deposits, for Jul-Sep quarter increased 16.5% to Rs2,906 crore from Rs2,494 crore in the corresponding period last year.

Other income, which includes core fee income, increased 27.10% to Rs1,143.2 crore in the three months from Rs899.44 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 15.24% in the September quarter compared with 15.18% in the June quarter and 15.74% in the year-ago quarter.

Post-provision, the net NPA ratio was at 6.98% against 7.23% in the Apr-Jun quarter and 8.42% in the year-ago quarter.

Capital Adequacy ratio of the bank under Basel III is 15.14% as on September 30, 2019 as against 11.43% as on June 30, 2019 compared to minimum regulatory requirement of 10.875%.

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IDBI Bank Q2 net loss narrows; asset quality improves

IDBI Bank Ltd on Friday said its second quarter net loss narrowed to ₹3,459 crore on the back of higher net interest income and other income. The bank posted a net loss of ₹3,602.49 crore in the year-ago period.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 25.42% to ₹1,631.48 crore from ₹1,300.86 crore in the corresponding period last year.

Other income, which includes core fee income, gained 28.08% to ₹1,032.66 crore in the three months.

CASA deposit increased 15.49% to ₹1.04 trillion as on 30 September, against ₹90,071 crore for the same quarter last year.

Earlier this year, insurance behemoth Life Insurance Corporation of India (LIC) acquired 51% controlling stake in IDBI Bank, marking the entry of the more than 60-year old state-owned insurer into the banking space.

The bank said net interest margin (NIM) improved 53 basis points (bps) to 2.33% during the quarter.

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City Union Bank Q2 net up by 15%

City Union Bank (CUB) posted a 15 per cent growth in second quarter net profit ₹194 crore. The bank's net profit for the same period last year stood at Rs 168 crore.

The bank reported a net profit of Rs 186 crore for the June quarter. Operating profit, driven by non interest income, grew 17 per cent for the September quarter to ₹346 crore as against ₹296 crore recorded for the same period last year.

While the bank's interest income grew by 12 per cent to Rs 1,037 crore (Rs 926 crore) during Q2FY20, non interest income grew by 64 per cent to Rs 195 crore (Rs 119 crore) for the same period. Asset quality of the bank remained stable despite a marginal increase in the bank's gross non-performing assets (GNPA).

The bank's GNPA as a percentage of total advances stood at 3.41 per cent (2.85 per cent) as on September 2019. While Net non-performing assets (NNPA) stood at 1.90 per cent (1.69 per cent).

"The incremental NPAs is from across all sectors and it's almost similar to what we saw in the last few quarters," N Kamakodi, MD & CEO, City Union Bank said in a press conference held here to announce the quarterly results.

He also added that the bank's incremental slippage for the quarter is around Rs 190 crore and total recovery from live accounts and technically written-off accounts is around Rs 115-120 crore. CUB's advances for the quarter grew by 12 per cent to ₹33,279 crore (₹29,785 crore as of September 2018), while total deposits went up by 17 per cent to ₹40,451 crore (₹34,534 crore).

Provision coverage ratio for the September quarter remained stable at 65 per cent while capital adequacy ratio stood at 15.49 per cent.

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Lakshmi Vilas Bank Q2 net loss widens

Private sector Lakshmi Vilas Bank on November 9 reported a net loss at Rs 357.17 crore for the quarter ending September 30, 2019.

The Tamil Nadu based bank had clocked net loss at Rs 132.30 crore during the year-ago period.

For the six month period ending September 30, net loss was at Rs 594.42 crore as against Rs 256.17 crore in the same period last year. Total income for the July-September quarter was at Rs 665.33 crore as against Rs 800.50 crore, the bank said in a press release.

For the half-year period ending September 30, total income was at Rs 1,342.50 crore as against Rs 1,588.00 crore in the year-ago period.

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Bank of Baroda(BoB) Q2 net profit rises five-fold

Public sector lender Bank of Baroda (BoB) on Friday reported a net profit of ₹737 crore for the three months to September, almost five times higher than the same period last year on the back of higher other income.

The bank's profit was higher than ₹165.4 crore estimated by a Bloomberg poll of 19 analysts.

BoB's other income was buoyed by trading gains of ₹942 crore in the quarter, compared to ₹138 crore in the same period last year.

Its net interest income, or the difference between the interest earned on loans and paid on deposits, increased 10.09% to ₹7,028 crore in Q2 FY20. The bank's net interest margin (NIM), a measure of profitability, stood at 2.81%, up 19 basis points (bps) on a sequential basis.

On 1 April, 2019, Bank of Baroda merged with two other state-owned banks, Dena Bank and Vijaya Bank.

Gross non-performing assets (NPAs),as a percentage of total advances, were at 10.25% in the September quarter and net bad loan ratio was at 3.91%.

The bank saw slippages of ₹6,001 crore in the second quarter of FY20. These were primarily driven by a few chunky accounts, the bank's management told reporters on Friday.

"Loans to two non-banking financial companies (NBFCs), one textile and one plastic company have slipped in the quarter. The exposure to these two NBFCs is ₹2,000 crore" said S L Jain, executive director, Bank of Baroda.

Jain added that the bank's total real estate exposure is at ₹15,000 crore and exposure to troubled mortgage lender Dewan Housing Finance Corp Ltd (DHFL) is about ₹2,000 crore.

The bank reported provisions of ₹4,209 crore in the September quarter, up 6.9% year-on-year (Y-o-Y), of which ₹3,425 crore was for bad loans.

The public sector lender's domestic advances grew 2% Y-o-Y to ₹5.33 trillion, led by retail loan growth of 16.2% Y-o-Y. It's domestic deposits grew 4% Y-o-Y to ₹7.83 trillion.

"Our focus will be on retail loans and in the corporate segment, we will try to have 80% of our corporate loans in AAA and AA-rated companies," said Murali Ramaswami, executive director, Bank of Baroda

Following the end of PS Jayakumar's term last month, the bank does not have a chief executive.

It's capital adequacy ratio under Basel III norms stood at 12.98% at the end of the September quarter.

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Allahabad bank Q2 net loss widens

Allahabad Bank on Friday reported widening of net loss to Rs 2,103.19 crore for the September quarter 2019-20 due to higher provision for bad loans. The state-owned lender had registered a loss of Rs 1,816.19 crore during the year-ago period, according to a regulatory filing.

In the preceding June quarter, the bank clocked a profit of Rs 128 crore.

Total income during July-September 2019 however rose to Rs 4,725.23 crore from Rs 4,492.23 crore in the same period last fiscal, the filing said.

Gross non-performing assets (NPAs) or bad loans increased to 19.05 per cent (Rs 31,467.53 crore) of the gross advances as on September 30, 2019 from 17.53 per cent (Rs 27,236.19 crore) by the same period of 2018.

Net NPAs came down to 5.98 per cent (Rs 8,502.09 crore) from 7.96 per cent (Rs 11,082.74 crore) in the year-ago period, it said.

The provisioning for bad loans spiked to Rs 2,721.97 crore in the second quarter, from Rs 1,991.88 crore in the year-ago period.

During the quarter under review, the bank made additional provision of Rs 1,982.41 crore over and above the provisions required to be made in terms of prudential norms issued by the RBI, to ensure compliance with the PCA norms of the net non-performing advances, it added.

The bank said it made no additional provisioning for the cases admitted under NCLT (list 1 and 2) as per the Insolvency and Bankruptcy Code for the quarter as well as first half ended September of this fiscal as it had already parked Rs 749.51 crore as at March-end 2018 towards these.

The non-performing loan provision coverage ratio of the bank is 79.30 per cent, it said.

"Pursuant to Government of India letter dated August 30, 2019 on amalgamation of PSBs, the board of directors in its meeting held on September 16, 2019 has considered and accorded its in-principle approval for amalgamation of the bank with Indian Bank and commencement of the amalgamation process, subject to all applicable approvals," Allahabad Bank said.

Further, the bank is evaluating the option of lower corporate tax under the amended tax rules.

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UCO Bank net loss narrows in Q2FY20

State-owned Uco Bank has cut net losses by 21.5% at Rs 892 crore for the September quarter on higher net interest income and treasury earnings. It had net loss of Rs 1,136 crore in the year ago period.

Uco's operating profit grew 139% at Rs 1207 crore -- the highest in last 16 quarters, but 44% higher provisions against bad loans at Rs 2034 crore forced the lender to book net losses for the 16th quarter in a row.

The bank's overall asset quality improved with gross non-performing assets ratio falling to 21.87% at the end of second quarter from 25.37% a year back but the lender had to make higher provisions because of fresh slippages of Rs 1378 crore and on account of ageing provisions, managing director AK Goel told ET.

Net NPA ratio improved to 7.32% from 11.97% in the same period. The bank had earlier in the month reported Rs 1223 crore divergence in asset classification as on March.

Our effort will hereon be on how to increase operating profit and net interest income," Goel said. The bank's cost of deposits have fallen to 4.97% from 5.16% with current and savings account ratio to total deposits improving to 40.55% from 36.96%.

Its interest income rose 31.3% at Rs 1266 crore while it booked a trading profit of Rs 368 crore compared with Rs 277 crore in the year ago period.

Goel said his bank has followed the earlier income tax rules for the quarter and half year and is evaluating the option to adopt the new tax rules as amended by the government recently.

"The bank has recognised deferred tax asset of Rs 8,086.37 crore on carry forward losses up to March 31. During the quarter, the bank has recognised deferred tax assets of Rs 542.47 crore," it said in a regulatory filing.

During the second quarter to September 2019 period, the central government infused Rs 2,130 crore by way of preferential allotment of equity shares. With this, Uco's capital adequacy ratio improved to 11.44% from 10.88% three months back.

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Andhra Bank has posts net profit in Q2

Andhra Bank has posted a net profit of Rs 122 crores for the quarter ended September 30, 2019.

This profit accounted for a 35 per cent growth over the first quarter performance ended June, 2019, a bank statement said on Thursday.

The total deposits of the Bank stood at Rs 2,17,970 crore during the quarter as compared to Rs 2,06,697 crore during the same quarter last year by posting 5.45 per cent growth.

The total business of the bank stood at Rs 3,95,068 crore as compared to Rs 3,75,534 crore during the same period last year by posting 5.20 per cent growth.

Net NPAs were 5.95 per cent as compared with 5.73 per cent at the end of March 2019, the statement added.

The Bank has 2876 number of branches (rural 749, SU 763, Urban 652 and Metros 712) and 4 extension counters, and 3798 number of ATMs/BNAs/CRs. The total number od delivery channels of the Bank was 6678.

Agricultural Credit registered a Year-on-Year growth of 7.73 per cent and stood at Rs 35,961 crore, the statement added.  

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Corporation Bank net profit rises 26%

State-owned Corporation Bank on Wednesday reported a rise of 26 per cent in its net profit to Rs 129.76 crore for the second quarter ended September 30, on the back of lower provisioning for bad loans. The bank had posted a net profit of Rs 103.01 crore in the corresponding quarter of 2018-19.

Its total income also rose to Rs 4,712.97 crore in the second quarter of 2019-20 from Rs 4,216.79 crore in the corresponding quarter of 2018-19, the bank said in a regulatory filing.

The lender's asset quality witnessed improvement as the gross non-performing assets (NPAs) fell to 15.43 per cent (Rs 20,822.83 crore) of the gross advances at the end of September 2019, compared with 17.46 per cent (Rs 21,714.16 crore) by the year-ago period.

Net NPAs or bad loans fell substantially to 5.59 per cent (Rs 6,751.20 crore), against 11.65 per cent (Rs 13,534.01 crore) a year ago.

This resulted into lesser provisioning for bad loans and contingencies for the quarter at Rs 789.45 crore from Rs 808.32 crore a year ago. Of this, provisioning for bad loans was Rs 658.09 crore, down from Rs 728.56 crore a year ago.

The bank said it carried a provision of Rs 28.32 crore as on September 30, which is 5 per cent of outstanding food credit availed by the Punjab government, as per the Reserve Bank of India.

Further, the bank said it continues to hold provisions additionally made as of March 31 in respect of eligible National Company Law Tribunal (NCLT) accounts, those under NPA category as well as for under standard assets accounts.

The bank has reversed deferred tax assets of Rs 119.36 crore, during the half year ended 30th September, 2019. On 20th September, 2019, vide Taxation Laws (Amendment) Ordinance 2019, the Government of India inserted Section 115BAA in the Income Tax Act 1961, which provides domestic companies a non-reversible option to pay corporate tax at reduced rates effective 1st April, 2019 subject to certain conditions," the lender said.

It also added that the bank is currently in the process of evaluating this option.

Corporation Bank continues to recognise the taxes on income for the quarter and the half year ended September 30, 2019, as per the earlier provision of tax laws.

Provision coverage ratio of the bank as of September 30 was 83.95 per cent, compared to 65.47 per cent a year ago.

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Canara bank net profit rises 21.83% in Q2FY20

Canara Bank net profit rose 21.83% to Rs 364.92 crore on 14.06% increase in total income to Rs 14,461.73 crore in Q2 September 2019 over Q2 September 2018.

The result was announced during market hours today, 6 November 2019.

The bank reported an improvement in asset quality. The bank's gross non-performing assets (NPAs) stood at Rs 38711.33 crore as on 30 September 2019 as against Rs 39399.02 crore as on 30 June 2019 and Rs 45233.22 crore as on 30 September 2018.

The ratio of gross NPAs to gross advances stood at 8.68% as on 30 September 2019 as against 8.77% as on 30 June 2019 and 10.56% as on 30 September 2018.

The  ratio of net NPAs to net advances stood at 5.15% as on 30 September 2019 as against 5.35% as on 30 June 2019 and 6.54% as on 30 September 2018.

The bank's provisions and contingencies declined 28.12% to Rs 2037.97 crore in Q2 September 2019 over Q2 September 2018.

Provision Coverage Ratio improved to 70.11% in Q2 2019 from 61.39% in Q2 2018.

Canara Bank is a state-owned commercial bank with headquarters in Bangalore. The Government of India holds a 70.62% stake in Canara Bank as of September 2019.

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Punjab National Bank(PNB) report profit in Q2

Punjab National Bank (PNB) on Tuesday reported a net profit of Rs 507.05 crore for the September quarter.

The state-run lender had reported Rs 4,532.35 crore loss in the corresponding quarter last year.

Net interest income (NII) for the quarter rose 7.2 per cent to Rs 4,262 crore from Rs 3,974 crore in the corresponding quarter last year.

The bank made Rs 2,928.90 crore in provisions for the quarter, which were 44 per cent higher than Rs 2,023.31 crore provisions made in June quarter but 70 per cent lower than Rs 9,757.90 provisions the bank made crore in the year-ago quarter.

Gross non-performing assets as percentage of total advances rose sequentially to 16.76 per cent in September quarter from 16.49 per cent in June quarter. It stood at 17.16 per cent in the year-ago quarter.

“During the quarter bank has availed dispensation for deferment of provision in respect of frauds amounting to Rs 2580.72 crore. Accordingly, an amount of Rs 645.19 crores has been charged to profit and loss account during the quarter and Rs 1,935.53 crores has been deferred to subsequent quarter,” the bank said.

“Further, out of unamortised amount of Rs 718.38 crore up to June quarter, an amount of Rs 369.59 crore has been charged to P&L account and remaining amount of Rs 348.79 crore has been carried forward to subsequent quarters. Total amount of remaining provision to be carried over to the subsequent quarters is Rs 2,284.32 crore,” the bank said.

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Indian Overseas Bank Q2 net loss widens

Public lender Indian Overseas Bank on Monday reported widening of net loss to Rs 2,253.64 crore for the second quarter ended September 30, 2019, on account of rise in operating expenses as well as provisions.

"The bank had posted net loss of Rs 487.26 crore during the same quarter last year," Indian Overseas Bank (IOB) said in a filing to the Bombay Stock Exchange (BSE).

For the quarter ended September 2019, the lender logged total revenue of Rs 5,024 crore as compared to Rs 5,348.35 crore during the same quarter last year.

The operating profit of the bank decreased to Rs 746.01 crore as against Rs 1304.19 crore in the corresponding quarter last year.

The Chennai-headquartered bank provided for Rs 2,996.04 crore towards provisioning and contingencies during September quarter of this fiscal, versus Rs 2,016.60 crore in the year-ago quarter.

The public sector lender's net interest income (NII), which is the difference between interest earned and interest expended, decreased marginally to Rs 4275.65 crore in Q2FY20 versus Rs 4,283.74 crore in Q2FY19, Indian Overseas Bank said.

Non-interest income or other income increased to Rs 748.35 crores in Q2FY20 from Rs 1,064.61 crores in Q2FY19.

On the asset front, gross non-performing assets (NPA) as a percentage of advances declined to 20 per cent versus 24.73 per cent in the year-ago quarter. Net NPAs also slipped to 9.84 per cent in the second quarter from 14.34 per cent in the year-ago period.

During July-September quarter, gross NPA in absolute term stood at Rs 28,673.95 crore as against Rs 37,109.96 crore during Q2FY20.

Ahead of Q2 earnings, shares of Indian Overseas Bank closed 9.81 per cent higher at Rs 11.98 apiece on the Bombay Stock Exchange on Monday.

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Central Bank of India back into profit in Q2

Central Bank of India was back in the black, logging a consolidated net profit of Rs 138.58 crore for the September quarter of the current fiscal as bad loans came down. The state-owned lender had posted a loss of Rs 935.54 crore in the year-ago period. In April-June period of this fiscal, the lender clocked a profit of Rs 121.61 crore.

Income during the period under review rose to Rs 6,728.17 crore as against Rs 6,224.05 crore in the year-ago same period, the bank said in regulatory filing.

On standalone basis, the net profit stood at Rs 134.07 crore. In September quarter of the previous fiscal, there was a loss of Rs 923.60 crore.

Gross non-performing assets (NPAs) came down to 19.89 per cent (Rs 33,497.22 crore) of gross advances at the end of September 2019 from 21.48 per cent (Rs 37,410.76 crore) by the same period a year ago.

Net NPAs or bad loans also came down to 7.90 per cent (Rs 11,551.91 crore) from 10.36 per cent (Rs 15,794.15 crore).

Thus, provision for bad loans and contingencies (consolidated basis) for the September quarter of 2019-20 fell to Rs 794.28 crore from Rs 1,983.18 crore parked aside during the year-ago period.

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Karur Vysya Bank’s Q2 net profit dips by 25%

Karur Vysya Bank’s net profit dipped by 25% at Rs 63 crore in the July-September quarter, as against Rs 84 crore in the same period last year, due to higher provisioning for bad loans despite improvement seen in asset quality.

In September quarter, the bank increased provisioning for bad loans by 71% at Rs 365 crore as against Rs 231 crore in same quarter last year.

During the September quarter, gross non-performing assets (NPA) in absolute terms lowered to Rs 4,391 crore, compared to Rs 4,511 crore in the previous quarter. Gross NPAs as a percentage of total loans improved to 8.89% from 9.17% during the previous quarter while the net NPA ratio also decreased from 4.94% to 4.50% on quarterly basis.

In July-September, the lender’s operating profit went up 19% at Rs 431 crore as against Rs 361 crore in the previous year. A marginal increase is seen in the bank’s net interest income (NII) by Rs 17 crore compared to last quarter.

The bank’s net profit was dragged by provisioning gone up by 71% compared to last year.

Total advances grew by Rs 1,247 crore at Rs 49,388 crore in this September quarter, from Rs 48,141 crore reported last year. During the same period, total deposits increased by Rs 3,951 crore (7%) from Rs 58,262 crore to Rs 62,213 crore.

The private lender’s CASA deposits stood at Rs 18,522 crore with a share of 30%, the bank’s net interest margin (NIM) stood at 3.46%. Provision Coverage Ratio of the bank stood at 61.82%.

Total Capital Adequacy Ratio (CAR) as per Basel III guidelines stood at 15.99% on September 30, 2019, as against regulatory requirement of 10.9%.

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Yes Bank reports net loss in Q2FY20

Private sector lender Yes Bank today reported a net loss of ₹600 crore in the quarter ending September 30, hurt by a one-time deferred tax adjustment of ₹709 crore on account of change in corporate tax rate regime. Excluding this impact, adjusted net profit was at ₹109 crore. Yes Bank had reported a net profit of ₹964 crore profit in the same quarter of the previous year.

Yes Bank's bottomline was also hurt by a rise in provisions to ₹1,336 crore in the September quarter, as compared to ₹939 crore in the year-earlier quarter.

The asset quality worsened on a sequential basis. Gross NPA as a ratio of total advances rose to 7.39% in September quarter as compared to 5.01% in the June quarter. Net NPA rose to 4.35% as compared to 2.91%.

Yes Bank had on Thursday disclosed that it has received a binding offer from a global investor for an investment of $1.2 billion, subject to regulatory and and other necessary approvals.

The bank in its earnings report today also said that it has received multiple other non-binding but strong bids from marquee domestic and global institutional investors and family offices.

"The board is evaluating all bids to ascertain the most optimal capital solution for the bank," it added. Yes Bank had raised $273 million via QIP route in the September quarter.

Yes Bank shares today closed 5.5% lower ahead of the earnings announcement, following a nearly 25% rally on Thursday.

Yes Bank also reported a rise in employee headcount by 2,466 during the second quarter, mainly in retail/branch banking.

Here are the highlights of Yes Bank Q2 earnings:

Net interest income at ₹2,186 crore in Q2FY20 and it includes the impact of ₹228 crores due to fresh slippages during the quarter

Net interest margin at 2.7%

Non-interest income at ₹946 crores

10% sequential growth in retail banking fees

Operating expenses at ₹1,673 crores for Q2FY20

Pre-provisioning operating profit at ₹1,458 crores for Q2FY20

Provisions of ₹1,336 crore.

Book Value at ₹109.0 per share as on September 30, 2019

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BoI posts profit in Q2 due to lower provision

State-owned Bank of India (BoI) on Friday reported a net profit of Rs 266.37 crore for the second quarter ending September 30, due to a decline.....

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Syndicate Bank reports net profit in Q2FY20

Syndicate Bank reported a net profit of Rs 251.05 crore in Q2 September 2019 over a net loss of Rs 1,542.54 crore in Q2 September 2018.

Total income rose 4.49% to Rs 6,153.10 crore on a 10.62% increase in net interest income (NII) to Rs 1,739.25 crore in Q2 September 2019 over Q2 September 2018.

The bank's gross non-performing assets (NPAs) stood at Rs 25,382.26 crore as on 30 September 2019 as against Rs 25,402.74 crore as on 30 June 2019 and Rs 27,131.14 crore as on 30 September 2018.

The ratio of gross NPAs to gross advances stood at 11.45% as on 30 September 2019 as against 11.76% as on 30 June 2019 and 12.98% as on 30 September 2018.

The ratio of net NPAs to net advances stood at 5.98% as on 30 September 2019 as against 5.96% as on 30 June 2019 and 6.83% as on 30 September 2018.

The bank's provisions and contingencies fell 71.18% to Rs 638.94 crore in Q2 September 2019 over Q2 September 2018. Of this, provisions for NPAs fell 59.77% to Rs 652.67 crore in Q2 September 2019 over Q2 September 2018.

Provision coverage ratio of the bank stood at 68.64% as on 30 September 2019.

The board of directors in its meeting held on 13 September 2019 has considered and accorded it's 'in principle approval' for amalgamation of Syndicate Bank into Canara Bank subject to all applicable approvals.

On September 20,2019 vide taxation laws (Amendment) Ordinance 2019,the Government of India inserted Section 115BAA in the Income Tax Act 1961, which provides domestic companies a non reversible option to pay corporate tax at reduced rates effective 1 April 2019 subject to certain conditions. The Bank is currently in the process of evaluating this option.

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United Bank of India reports Q2 net profit as bad loans fall substantially

State-owned United Bank of India reported a net profit of Rs 123.88 crore in the second quarter ended September 30, on the back of substantially lower dud loans, leading to lower provisioning requirement.

The Kolkata-headquartered bank had posted a net loss of Rs 883.17 crore in the July-September period of 2018-19.

Sequentially, there was a net profit of Rs 105 crore in the first quarter ended June this year.

The lender's total income rose to Rs 3,013.74 crore in the September 2019 quarter, compared with Rs 2,600.47 crore earned in the corresponding period of the previous financial year, the bank said in a regulatory filing on Wednesday.

The bank brought down its net non-performing assets (NPAs) to 7.88 per cent as on September 30, from 14.36 per cent by the end of September 2018.

Gross NPAs or bad loans reduced to 15.51 per cent of the gross advances by the end of September, compared with 22.69 per cent in the year-ago period.

In absolute terms, the net NPAs were Rs 5,380.93 crore against Rs 8,658.10 crore, while the gross NPAs were Rs 11,544.19 crore from Rs 15,163.28 crore.

Thus, the bank's provisioning and contingencies requirement for July-September 2019 came down to Rs 436.42 crore from Rs 1,481.24 crore parked aside for the year-ago period.

The lender said it made additional provision of Rs 46.75 crore in respect of eligible NCLT accounts by the end of second quarter.

"Actual provision as on September 30, 2019, for NCLT (list 1 and 2) accounts stand at Rs 3,322.77 crore instead of Rs 3,276.01 crore as per IRAC (income recognition and asset classification) norms," it added.

Provision coverage ratio as on September 30 stood at 74.89 per cent, said United Bank of India.

"Pursuant to the government's letter dated August 30, 2019 on amalgamation of PSBs (public sector banks), the board of directors of the bank at its meeting held on September 18, 2019, had considered and accorded its in-principle approval for amalgamation of United Bank of India, Oriental Bank of Commerce and Punjab National Bank and commencement of the amalgamation process, subject to all applicable approvals," it added.

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ICICI Bank Q2 profit falls 28% YoY; asset quality improves

ICICI Bank on Saturday posted a 27.90 per cent year-on-year (YoY) fall in net profit at Rs 654.96 crore for the quarter ended September 2019. It had posted a net profit of Rs 908.88 crore in the same period last year.

“Excluding the impact of one-time additional charge due to re-measurement of accumulated deferred tax, profit after tax would have been Rs 3,575 crore in Q2FY20 compared with Rs 909 crore in Q2FY19,” ICICI Bank said in a release.

Net interest income of the lender increased 25.53 per cent YoY to Rs 8,057 crore in Q2FY20 over Rs 6,418 crore in Q2FY19.

Asset quality of the lender improved with percentage of gross non-performing assets easing to 6.37 per cent during the quarter under review against 8.54 per cent in the corresponding quarter last year. The figure stood at 6.49 per cent in the preceding quarter ended June 2019.

Percentage of net NPA improved to 1.60 per cent from 3.65 per cent YoY. It was at 1.77 per cent for the quarter ended June 2019.

Provisions and contingencies declined 37.23 per cent YoY to Rs 2,506.87 crore in Q2FY20. Total expenditure of ICICI Bank, however, increased 22 per cent YoY to Rs 15,885.42 crore during the quarter under review.

Total capital adequacy ratio stood at 16.14 per cent as of September 2019.

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IDFC First Bank net loss widens in Q2FY20

IDFC First Bank reported a loss of Rs 680 crore due to taking an one-time impact on deferred tax asset markdown as against Rs 617 crore in the quarter ago period. The profit before tax came at Rs 100 crore, as against a loss of Rs 583 crore in the year-ago period. "The key aspects this quarter are maiden profitability and strong growth in retail deposits and CASA addition of Rs 6,000 crore," its managing director and chief executive V Vaidyanathan said.

The bank, which has been formed with the merger of infra-focused IDFC Bank and the non-bank lender Capital First in January 2019, reduced its loan book by over Rs 5,000 crore to focus only on retail loans during the quarter, which now constitute 45 per cent of the book.

While the overall loan book has gone down, it is a more profitable growth as the retail loans are more profitable and has grown by Rs 3,400 crore last quarter, Vaidyanathan said.

As the bank has not been able to deploy the money, it has kept the liquidity coverage ratio at an elevated levels of 125 per cent as against the mandated 100 per cent, he said. On asset quality, the gross non-performing assets now form 2.62 per cent of the loans, while the provisions for bad loans went up to Rs 1,294 crore from Rs 1,203 crore in June. From a stress perspective, the bank said it has two identified accounts to a non-bank lender and a housing finance company with an aggregate exposure of Rs 1,231 crore, on which it is carrying a 75 per cent provision.

It also flagged one account in the infra space of Rs 985 crore where it is carrying provisions of only 15 per cent, wherein the cashflows are strong but repayments are behind schedule. The core net interest income stood at Rs 1,363 crore, which was up 11 per cent as compared to the preceding June quarter, helped by a margin expansion to 3.43 per cent.

The cost to income ratio for the bank came down to 75.61 per cent from the 78.60 per cent three months ago. 

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