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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