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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Bandhan Bank Q2 profit rises 99% YoY

Bandhan Bank on Thursday reported 99.28 per cent year-on-year (YoY) rise in net profit for the September quarter at Rs 971.79 crore. The bank had posted a profit of Rs 487.65 crore in the quarter ending September 2018.

However, it should be noted that the numbers for this quarter are not comparable to the same quarter last year due to its merger with Gruh Finance.

Net Interest Income (NII) for the quarter grew 41.84 per cent to Rs 1,529 crore as against Rs 1,078 crore in the corresponding quarter of the previous year. Non-interest income grew 56.96 percent to Rs 361 crore for the quarter ended September 2019 against Rs 230 crore from year ago quarter.

GNPA as at the end of Q2FY20 stood at 1.76 per cent against 2.02 per cent in the June quarter and 1.29 per cent in the September quarter last year.

Net NPA was flat at 0.56 per cent against 0.56 per cent at the end of June 2019 and 0.69 per cent as on September 2018.

CASA for the lender grew 38.69 per cent in the September quarter. CASA ratio was at 33.40 per cent against 36.9 per cent year-on-year.

“Our performance this quarter has been good. There has been a strong growth in deposits and advances with record growth in profits. As we step into the second half of the financial year we feel more confident given our current performance. Historically, second half-year has always been better than the first half-year. Having completed the merger in record time, we now look forward to enhancing the Housing Loan business with the expertise of the well experienced team and the well tested model coupled with our large distribution network and customer base,” Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said.

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State Bank of India(SBI) Q2 profit zooms three-fold

Public sector State Bank of India on Friday posted a 218 per cent jump in standalone net profit for the September quarter to Rs 3,011.73 crore. The lender had posted a profit of Rs 944.87 crore in the same quarter last year.

Analysts in an ET NOW poll had projected a profit of Rs 2,345 crore.

Reacting to the earnings numbers, shares of the lender jumped nearly 7 per cent to Rs 295.75.

Under exceptional items, the bank reported a net profit of Rs 3,484.30 core on sale of partial investments in subsidiary SBI Life Insurance Company.

Fresh slippages halved to Rs 8,800 crore from Rs 16,000 crore on a quarterly basis.

The asset quality of the bank improved with gross non-performing asset (NPA) ratio coming in at 7.19 per cent, down 276 bps yearly and 34 bps sequentially. Net NPA ratio was at 2.79 per cent, down 205 bps YoY and 28 bps QoQ.

Net Interest Income (NII) of the lender increased to Rs 24,600 crore in Q2FY20 from Rs 20,906 crore in Q2FY19, an increase of 17.67 per cent.

SBI’s operating profit zoomed 31 per cent to Rs 18,199 crore from Rs 13,905 crore. Domestic credit growth was at 8.43 percent at the end of September quarter mainly driven by retail-personal advances (up 18.90 per cent YoY).

The bank was holding total provisions of Rs 22,399 crore, which was 89.63 per cent of total outstanding, as of September 30, 2019.

Provision Coverage Ratio (PCR) significantly improved to 81.23 per cent as on September 30, 2019 from 70.74 per cent last year. Sequentially, PCR improved by 189 bps.

The bank said it was “well capitalised”, with fresh additional Tier I fund raising of Rs 3,104.80 crore during the quarter.

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Indian Bank Q2 net profit more than doubles

Indian Bank on Wednesday said its second quarter net profit more than doubled on higher other income and a decline in provisioning.

The bank posted a net profit of ₹358.56 crore for the three months ended 30 September compared with ₹150.14 crore in the year-ago period.

Profit was higher than the Bloomberg poll of five analysts, which had estimated a loss of ₹328.10 crore.

Other income, which includes core fee income, rose 72.22% to ₹737.65 crore in the three months from ₹428.32 crore a year ago.

Provisions during the quarter decreased 9.46% to ₹909.37 crore as against ₹1004.34 crore in the year-ago quarter. In Apr-Jun, the bank had set aside ₹794.82 crore in provisions.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 7.63% to ₹1863.04 crore from ₹1730.93 crore in the corresponding period last year.

Gross non-performing assets (NPA), as a percentage of total advances, were at 7.2% in the September quarter compared with 7.33% in the June quarter and 7.16% in the year-ago quarter.

Post provision, the net NPA ratio was at 3.54% against 3.84% in the Apr-Jun quarter and 4.23% in the year-ago quarter.

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Oriental Bank of Commerce (OBC) Q2 profit rise QoQ

State-owned Oriental Bank of Commerce (OBC) posted net profit of Rs125.9 crore in the quarter-ended September, up 23% year-on-year, as fewer new loan accounts turned bad and on account of a rise in net interest margin. It had reported a profit of Rs112.7 crore in April-June quarter.

OBC’s interest income grew 13.9% year-on-year to Rs4,878 crore in the three months ended September. Gross non-performing assets (NPA) declined 471 basis points (bps) year-on-year to 12.53% in the September quarter, while net NPA fell 413 bps to 5.94%, the bank said in a filing with the exchanges. Bad loans declined due to lower fresh slippages.

The lender’s net interest income grew 14.7% to Rs1,456 crore. Its net interest margin—a key measure of profitability—grew 6 bps year-on-year to 2.62%.

OBC’s provisioning coverage ratio (PCR) increased to 77.13% as of September-end, up 11.8 percentage points from a year ago. PCR is the amount set aside to cover NPAs.

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