City Union Bank Q2 results: Net profit rises 15%

City Union Bank on Friday reported a 15 per cent rise in its net profit to Rs 182 crore for the September 2021 quarter, as provisioning for bad loans and contingencies fell. The bank had posted a net profit of Rs 158 crore in the corresponding period last year.

Its total income during July-September 2021 fell slightly to Rs 1,224.94 crore, compared with Rs 1,230.27 crore in the year-ago period, City Union Bank said in a regulatory filing.

The lender's interest income, however, rose one per cent to Rs 478 crore, from Rs 475 crore a year ago.The bank said its deposits grew 12 per cent to Rs 46,316 crore during the September 2021 quarter, compared with Rs 41,021 crore a year ago.

Advances were up by 7 per cent at Rs 38,012 crore during the quarter under review. The total business jumped 10 per cent to Rs 84,328 crore as of September 30, 2021.Net interest margin stood at 4.03 per cent and the return on assets at 1.32 per cent.

On the assets quality front, there was deterioration with the gross non-performing assets (NPAs) moving up to 5.58 per cent of the gross advances at the end of September 30, 2021, against 3.44 per cent a year ago.

In terms of value, the gross NPAs stood at Rs 2,119 crore, against Rs 1,220 crore a year ago.

Net NPAs, or bad loans, were at 3.48 per cent (Rs 1,294 crore), compared with 1.81 per cent (Rs 631 crore) a year ago.

The bank's capital adequacy as of September 30, 2021, as per RBI guidelines on Basel-III norms is 19.24 per cent and tier-1 capital adequacy was at 18.18 per cent, well above the regulatory requirements.

Read More

Bank of Baroda Q2 results: Net profit rises 24%

 

Bank of Baroda reported a 24 per cent growth in standalone net profit mainly due to a 23 per cent increase in other income which includes fees and bad loan recoveries and helped by a fall in provisions as bad loans decreased year on year.

Net Profit of Rs 2,088 crore in the quarter ended September 2021 from Rs 1,679 crore a year earlier. Other income increased to Rs 3,579 crore from Rs 2910 crore last year.

The rise in other income made up for the tepid growth in net interest income (NII) which is the main income the bank earns by giving loans. NII increased 2 per cent to Rs 7566 crore largely as the cost of deposits fell to 3.52 per cent in September 2021 from 3.99 per cent a year ago and covered up for a 6 per cent fall in total interest earned.

A 2 per cent year-on-year fall in provisions also helped the bank's bottom line. Provisions fell to Rs 2754 crore from Rs 2811 crore a year ago and was lower than the Rs 4005 crore reported in June 2021.

Gross NPA ratio improved to 8.11 per cent in September 2021 from 9.14 per cent a year ago.
CEO Sanjiv Chadha said the worst of slippages was over and asset quality trends will only become better.

“We had guided for credit costs of 1.5% to 2% with likely trends on the lower of the range as we are sticking to our guidance this year ... credit costs have come down, recoveries have improved and margins have been steady,” Chadha said.

Recoveries increased to 3,246 crore including 1,246 crore from written-off accounts and higher than the total recoveries of 1,981 crore reported in the same quarter last year. As with other major banks, BoB was helped by a 877-crore recovery from DHFL.

Total loan book increased 2% to 7.34 lakh crore from 7.19 lakh crore a year earlier mainly due to a 10% rise in retail loans led by a 33% growth in personal loans and a 23% growth in auto loans. Corporate loan book remained flat after a 10% drop in the first quarter ended June.

Chadha said though the corporate growth has been tepid for more than a year, he expects some demand to come in the second half of the fiscal as sectors like cement, steel, green energy and electric vehicles expand capacities.

Retail mortgages make up 64% of the bank’s 1.35 lakh total retail loans with high growth businesses like personal loans making less than 5% of the book.

Chadha expects the bank’s loan growth to be close to double digits this year led by growth in retail loans and the bank will continue to grow the high-risk auto and personal loan businesses with caution using credit appraisals, and will have a preference for its own customers than outsiders.

Read More

State Bank of India(SBI) posts huge net profit in Q2

 

India's largest lender State Bank of India (SBI) today reported standalone second quarter net profit of ₹7,626 crore, which is the highest ever for the Bank, up 67% over last year. This compares with ₹4,574 crore in the corresponding quarter of last year (Q2FY21).

On Wednesday, SBI shares were up 3.86% in noon deals at ₹541.85 apiece on NSE. SBI scrip has comfortably outperformed the Nifty Bank and Nifty50 indices, rising 86.83% so far in 2021 (Year-to-Date). In the same period, Bank Nifty and Nifty rose 27.90% and 27.61% respectively.

On a sequential basis, the profit rose 17% from ₹6,504 crore in the June quarter.

The state-owned lender's net interest income (NII) --- the difference between interest earned and expended --- rose 10.6% to ₹31,184 crore for the reporting period.

SBI has incurred an exceptional item during the second quarter after it fully provisioned ₹7,418 crore on account of change in family pension rules, even as regulator granted dispensation to amortise in 5 years.

The net interest margin (NIM) of the lender during the September quarter rose 16 basis points to 3.50%.

SBI's operating profit increased by 9.84% year-on-year to ₹18,079 crore in the second quarter from ₹16,460 crore in the last year period.

On the asset quality front, gross non performing assets (NPAs) came in at 4.90% in the September quarter, lower than 5.32% in the June quarter and 5.28% in the last year same quarter.

The non interest income of the Bank fell 3.7% to ₹8,207 crore in the second quarter as compared to ₹8,527 crore in the same period a year earlier.

Meanwhile, the net NPA ratio stood at 1.52% for the quarter under review.

Loan loss provisions during the quarter fell sharply to ₹2,699 crore, down over 55% from ₹5,619 crore in the last year period.

The Bank's advances during the quarter rose by 6.17% over last year, mainly driven by personal retail advances (15.17% YoY) and foreign office advances (16.18% YoY).

Meanwhile, domestic advances growth stood at 4.61% for the period under review. Home loans, which constitute 24% of Bank’s domestic advances, has grown by 10.74% year-on-year.

SBI's provision coverage ratio (PCR) is at 87.68% in the second quarter, while slippage ratio for the same period stood at 0.66% only, down from 2.47% in previous June quarter.

The Bank's total deposits grew at nearly 10% when compared with last year, while current account deposits grew by 19.2% year-on-year and saving bank deposits grew by 10.55% year-on-year.

The Bank's capital adequacy ratio (CAR) at the end of September quarter came in at 13.35% even without including first half profit.

Read More

Punjab National Bank(PNB) Q2 profit up by 78%

  

State-owned Punjab National Bank (PNB) on Wednesday reported a 78 per cent rise in net profit to Rs 1,105 crore for the second quarter ended on September 30 despite a fall in income.

The country's second-largest lender had posted a net profit of Rs 620.81 crore during the corresponding quarter a year ago.

However, the bank's total income during the July-September quarter declined to Rs 21,262.32 crore as against Rs 23,279.79 crore in the corresponding period last year, PNB said in a regulatory filing.

The bank's operating profit too declined to Rs 4,021.12 crore from Rs 5,674.91 crore in the same quarter in the previous financial year.

On the asset quality front, the lender's gross non-performing assets (NPAs) increased marginally to 13.63 per cent of the gross advances at the end of September 2021, from 13.43 per cent a year ago period. Net NPAs also increased to 5.49 per cent as against 4.75 per cent a year ago.

However, provisions for bad loans declined to Rs 2,692.74 crore in the quarter, against Rs 3,811.17 crore in July-September 2020.

Provisions (other than tax) and contingencies declined to Rs 3,261.37 crore as against Rs 4,696.15 crore at the end of the second quarter of previous fiscal.

The government holding in the bank stood at 73.15 per cent at the end of September quarter. The Provisioning Coverage Ratio as of September 30, 2021, works out to 80.77 per cent compared to 83 per cent, it said.

Capital-to-risk-weighted assets ratio (CRAR) as per Basel-III increased to 15.20 per cent as against 12.8 per cent at the end of September 2020 quarter.

It further said the extent to which the Covid-19 pandemic will impact the bank's results will depend on future developments.

"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," it said.

Read More

Union Bank of India profit jumps 3-fold in Q2

  

State-owned Union Bank of India on Tuesday reported a nearly three-fold jump in its standalone net profit to Rs 1,526.12 crore for the September 2021 quarter. The lender had posted a net profit of Rs 516.62 crore in the corresponding quarter of the previous financial year.

Its total income during July-September 2021 rose to Rs 20,683.95 crore as compared with Rs 20,182.62 crore in the year-ago period, the bank said in a regulatory filing.

Provisionings for bad loans and contingencies fell to Rs 3,723.76 crore, against Rs 4,242.45 crore a year ago.

The bank's asset quality improved with the gross non-performing assets falling to 12.64 per cent of the gross advances by the end of September 2021, from 14.71 per cent by the end of September 2020.

In terms of value, the gross non-performing assets (NPAs) were worth Rs 80,211.73 crore, down from Rs 95,796.90 crore.

However, net NPAs increased slightly to 4.61 per cent (Rs 26,786.42 crore), from 4.13 per cent (Rs 23,894.35 crore) a year ago.

On a consolidated basis, the bank reported a net profit of Rs 1,510.68 crore in July-September 2021, a jump of 183 per cent from Rs 533.87 crore in the year-ago quarter.

Its consolidated total income rose to Rs 21,621.87 crore, from Rs 20,910.91 crore a year ago

Read More

Bank of India Q2 profit almost doubles as asset quality improves

 

Public sector lender Bank of India on November 2 has reported profit at Rs 1,051 crore for the quarter ended September 2021, almost double from Rs 525.8 crore in the year-ago period, on falling slippages and decline in provisions.

Its net interest income, the difference between the interest earned from lending activities and the interest paid to depositors, fell 14.3 percent year-on-year to Rs 3,523.5 crore in September 2021 quarter, with a 2.7 percent YoY increase in gross advances and 0.89 percent rise in deposits. Net interest margin at 2.42 percent improved by 26 basis points (bps) sequentially but dropped 24 bps YoY. One basis point is a hundredth of a percentage point.

Advances increased to Rs 4.18 lakh crore in September 2021 quarter, from Rs 4.07 lakh crore in same the quarter last year, while deposits jumped to Rs 6.12 lakh crore from Rs 6.07 lakh crore in the same period," the bank told the BSE.

Asset quality improved with the gross non-performing assets (NPAs) as a percentage of gross advances falling 151 bps sequentially to 12 percent and net NPA declining 56 bps QoQ to 2.79 percent in the quarter ended September 2021.

Slippages dropped significantly to Rs 1,307 crore as of September 2021, compared to Rs 3,942 crore in June 2021 quarter, which as a percentage of standard advances was at 0.36 percent against 1.09 percent respectively, said the bank, adding credit cost declined further to 0.26 percent in Q2FY22, from 0.95 percent in Q1FY22.

The bank reported a sharp fall in provisions and contingencies for the quarter at Rs 894 crore, declining 46 percent from Rs 1,652 crore in Q1FY22 and falling 56.3 percent from Rs 2,045 crore in Q2FY21.

Provisions refer to the amount banks need to set aside to cover the losses from a loan account. When an account turns into an NPA, the provisions required will equal the full loan amount.​
Bank of India said non-interest income increased by 58.71 percent YoY to Rs 2,136 crore for the September 2021 quarter. However, pre-provision operating profit at Rs 2,678 crore fell by 5.4 percent YoY.

Read More

Bandhan Bank posts huge loss in Q2 as bad loans surge

Private sector lender Bandhan Bank on Friday reported a whopping net loss of Rs 3,008.59 crore for the second quarter this fiscal, on the back of Rs 5,577.92-crore provisions as the lender saw a huge surge in bad loans.

In absolute terms, non-performing assets (NPAs) of the bank, which had posted a net profit of Rs 920 crore in the second quarter last fiscal, soared 10-fold year-on-year to Rs 8,763.60 crore in the second quarter this fiscal from Rs 873.97 crore in the year-ago period. On a quarter-on-quarter basis, NPAs grew 36% from Rs 6,440.38 crore in the first quarter.

During the period under review, the bank made an accelerated provision on NPA accounts of around Rs 1,500 crore. It also provided an additional standard assets provision amounting to Rs 2,100 crore and provision on restructured assets amounting to Rs 1,030 crore.

Addressing a virtual press meet, Bandhan Bank MD & CEO Chandra Shekhar Ghosh said, “It was a very critical quarter. But not just for us, everyone is undergoing the same. We recognised this reality and strengthen our balance sheet to be prepared for the future business. All stresses are assessed and finalised in this moment. And then, the bank made a one-time additional provision. This quarter total provisioning was Rs 5,578 crore.

 Due to such provisioning, the bank has reported a loss of around Rs 3,000 crore in this quarter...it is not a loss, it is like taking some break comfortably, so that from today, we can only focus on business growth and quality of the portfolio.”

Ghosh said the bank believed that this provisioning should be “sufficient” to take care of any previous asset quality issues on account of the ongoing pandemic as well as protect it against the disruptions caused by any potential third wave.

During the second quarter this fiscal, the bank’s gross NPAs as a percentage of total loans increased 964 basis points on year-on-year basis to 10.82% from 1.18% during the same quarter last fiscal. On a quarter-on-quarter basis, the gross NPA ratio soared 264 bps from 8.18% in Q1FY22.

Net interest income (NII) for the quarter stood at Rs 1,935.41 crore, against Rs 1,923.09 crore in the year-ago period. Net interest margin (NIM) stood at 7.6%, down 4 bps from 8% for Q2FY21.

Read More

Indian Bank Q2 results: Net profit jumps 2.6x

State-owned Indian Bank has reported a 2.6-fold rise in net profit for the September quarter buoyed by earnings from treasury operation and bad loan recovery while it logged lower interest income and higher provisions. The net profit for the quarter was at Rs 1089 crore as against Rs 412 crore in the year-ago period.

Its quarterly net interest margin (NIM) from domestic operation fell to 2.89 per cent from 3.06 per cent in the same period last year. Net interest income declined by 1 per cent at Rs 4084 crore as compared with Rs 4144 crore over the same period.

The bank’s managing director Shanti Lal Jain, who took charge on September 1, exuded confidence that interest income would rise with higher credit offtake which is expected going forward with the economic recovery.

Its operating profit rose 11 per cent at Rs 3276 crore as against Rs 2942 crore, riding on 26 per cent higher non-interest income at Rs 1966 crore as against Rs 1558 crore in the year-ago period. Non-interest income was buoyed by recovery of bad debts as well as higher forex income, Jain said.

The lender made a total recovery of Rs 3426 crore including upgradation of accounts as compared with Rs 1168 crore earlier. Provisions & contingencies for the second quarter ending September 30 were at Rs 2187 crore, 13.6 per cent lower compared with Rs 2530 crore earlier.

The bank’s gross non-performing assets ratio improved to 9.56 per cent at the end of the quarter from 9.89 per cent a year back. Net NPA however rose to 3.26 per cent as against 2.96 per cent over the same period.

It has seen fresh slippages of Rs 3952 crore with the classification of Srei Group’s account as NPA contributing Rs 1828 crore to it. "The slippage is due to one NBFC group account. We are not overly concerned over asset quality in the future," Jain said.

Its advances grew by 5 per cent to Rs 3.86 lakh crore, primarily driven by growth in retail, agriculture and MSME lending. Loans to these sectors constitute 60 per cent of the bank’s total advances.

Read More

Uco Bank Q2 results: Profit surges 7-fold

 

State-owned Uco Bank reported a near seven-fold jump in net profit for the September quarter, riding on higher interest income and write-back of provisions made earlier.

Its net profit stood at Rs 205.4 crore as against Rs 30.1 crore in the year-ago period.

Net interest income (NIM), a key parameter of profitability, remained flat at 2.79% for the quarter under review, despite lower lending rates.

"We expect NIM to be at 3% or more in the near future," managing director AK Goel said. He said the lower cost of funds, better collection efficiency from stressed accounts as well as higher credit growth would help in the improvement of NIM.

We expect advances to grow around 10% for the full year, Goel added.

The Kolkata-based lender's operating profit rose 24% at Rs Rs 1,334 crore as compared with Rs 1,076 crore in the year-ago quarter. Net interest income rose about 15% at Rs 1,598 crore from Rs 1,393 crore over the same period last year. Other income grew 31.2% YoY to Rs 936 crore.

Goel said the bank made an additional provision of Rs 250 crore towards Covid-19 related risk on asset quality, taking the total additional Covid-related provision to Rs 750 crore. Total bad loan provisions rose to Rs 1,595 crore in the September quarter from Rs 1,032 crore in the year-ago period.

The bank's total provision, however, came down to Rs 1,019 crore during the period from Rs 1,301 crore on account of write-backs of provisions made earlier. The bank has recovered Rs 550 crore from written-off accounts, taking the total recovery and upgradation to Rs 1,876 crore during the quarter.

Uco's asset quality improved with the gross non-performing assets (NPA) ratio falling to 8.98% at the end of September from 11.62% a year back. Net NPA stood at 3.37%, down from 3.63%. Its provision coverage ratio rose to 90% from 89.82% over the same period.

Its total advances grew 5.7% to Rs 1.22 lakh crore with retail, agriculture and MSME sectors now contributing about 64% to it.

Read More

Axis Bank Q2 results: Lender posts highest ever quarterly profit, up 86% YoY

Axis Bank on Tuesday reported an 86 per cent year-on-year (YoY) rise in net profit at Rs 3,133 crore for the September quarter compared with Rs 1,683 crore in the same quarter last year. This was the highest ever quarterly profit for the bank, the lender said in a BSE filing.

Net interest income (NII) for the bank rose 8 per cent YoY to Rs 7,900 crore compared with Rs 7,326 crore in the year-ago quarter. Net interest margin (NIM) for the recently concluded quarter came in at 3.39 per cent.

Specific loan loss provisions for the September quarter stood at Rs 927 crore compared with Rs 2,865 crore in the June quarter and Rs 724 crore in the year-ago quarter. Total Provisions & contingencies for the quarter fell to Rs 1,735 crore from Rs 3,302 crore in the preceding quarter and Rs 4,343 crore in the corresponding quarter last fiscal.

Gross NPA ratio fell to the lowest level in 20 quarters to 3.53 per cent for the July-September period. The figure stood at 3.85 per cent in the June quarter and 4.28 per cent in the year-ago quarter.

Gross slippages for the said quarter came in at Rs 5,464 crore, lower than Rs 6,518 crore in the June 2021 quarter but higher than Rs 1,751 crore (as per IRAC norms) in the same quarter last year.

"Slippages in Q2FY21 moderated due to regulatory forbearances that do not exist in the current quarter. Recoveries and upgrades from NPAs during the quarter were Rs 4,757 crore while write-offs were Rs 2,508 crore. Consequently, there were net slippages in NPAs (before write-offs) for the quarter of Rs 707 crore compared to Rs 3,976 crore in Q1FY22. Net slippages in NPAs (before write-offs) for retail loans stood at Rs 697 crore, and for SME there was a Rs 16 crore decrease in NPAs (before write-offs)," the bank said.

Fee income for the quarter rose 17 per cent YoY to Rs 3,231 crore. Retail fees jumped 19 per cent YoY and

constituted 63 per cent of the bank’s total fee income. The corporate & commercial banking fee grew 15 per cent, the bank said.

"The trading profits and miscellaneous income for the quarter stood at Rs 473 crore and Rs 95 crore, respectively. Overall, the non-interest income (comprising of fee, trading profit and miscellaneous income) for Q2FY22 stood at Rs 3,798 crore, up 6 per cent YoY," the bank said.

The bank’s provision coverage, as a proportion of Gross NPAs, stood at 70 per cent against 77 per cent as of September 2020 and 70 per cent as of June 30. Provisions prior to technical write-offs remained stable at 88 per cent.

Read More

IndusInd Bank Q2 results: Profit jumps 72% YoY

Private sector lender IndusInd Bank on Wednesday reported a 73 per cent rise in its consolidated net profit to Rs.1,146.73 crore for the second quarter ended September 30. It had posted a net profit of Rs.663.08 crore in the year-ago period.

Total income during the July-September quarter rose to Rs.9,488.06 crore from Rs.8,731.52 crore a year ago, IndusInd Bank said in a regulatory filing.

Interest income moved up at Rs.7,650.36 crore from Rs.7,177.21 crore.

On a standalone basis, the net profit increased by 72% to Rs.1,113.53 crore from Rs.647.04 crore. And the total income rose to Rs.9,487.56 crore against Rs.8,731.05 crore.

Bank's provisions for bad loans and contingencies fell to Rs.1,703.36 crore for the quarter from Rs.1,964.44 crore reserved for the year-ago period.

However, there was an uptick in the bank's gross bad loan proportion at 2.77 per cent of gross advances as of September 30, 2021, against 2.21 per cent a year earlier.

Net NPAs too increased to 0.80 per cent from 0.52 per cent.

The annualised return on asset (RoA) stood at 1.26 per cent compared with 1.12 per cent in the preceding quarter of this fiscal and 0.83 per cent in the same quarter last fiscal.

Read More

Kotak Mahindra Bank Q2 Results: Standalone profit falls 7%

Private sector lender Kotak Mahindra Bank on October 26 reported a 7 percent year-on-year decline in standalone profit at Rs 2,032 crore for the September 2021 quarter due to higher provisions. But supported by higher other income, the profit was ahead of analysts' estimates. However, net income sequentially grew by 24 percent on sharp decline in bad loan provisions.

Standalone net interest income in Q2FY22 rose 3.2 percent year-on-year to Rs 4,020.6 crore - meeting street expectations - with healthy 15 percent YoY (8 percent QoQ) loan growth. Net interest margin contracted 5 bps year-on-year and 15 bps sequentially to 4.45 percent in Q2.

"Advances during the quarter increased by 14.7 percent to Rs 2,34,965 crore, and deposits grew by 11.5 percent to Rs 2,91,711 crore compared to year-ago period," said the bank in its BSE filing on Tuesday.

Profit was estimated at Rs 1,792.2 crore and net interest income was expected at Rs 4,008.1 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Asset quality improved during the quarter ended September 2021 with gross non-performing assets as a percentage of gross advances falling 40 bps QoQ to 3.2 percent and the net NPA declined 20 bps to 1.1 percent on sequential basis. 10 basis points is 0.01 percent.

Provisions and contingencies declined sharply by 40 percent sequentially to Rs 424 crore in September 2021 quarter, but the same increased by 27.3 percent year-on-year which resulted into a drag in profitability.

Kotak Mahindra Bank said Covid related provisions as of September 2021 were maintained at Rs 1,279 crore and did not utilise in the first half of FY22. "The bank has implemented total restructuring of Rs 495 crore (0.21 percent of advances), and in addition, the bank has implemented total restructuring of Rs 767 crore (0.33 percent of advances) as on September 30, 2021."

"Total provisions (including specific, standard, COVID-19 related etc.) held as on September 2021 at Rs 7,637 crore, around 100 percent of gross NPA," the bank said.

The bank further said SMA-II (special mention account) outstanding at the end of September 2021 quarter was at Rs 388 crore, down compared to Rs 430 crore as of June quarter.

Non-interest income (other income) grew significantly to Rs 1,812.6 crore in the quarter ended September 2021 driven by fee and services business, up from Rs 1,432.4 crore in corresponding quarter of last fiscal. Fee and services included distribution & syndication income, and general banking fees.

On consolidated basis, the profit growth was significant, rising 65.5 percent year-on-year to Rs 2,989 crore and the year-on-year growth was 1.4 percent.

Subsidiaries - Kotak Securities recorded 22.1 percent year-on-year growth in profit at Rs 243 crore and Kotak Mahindra Prime clocked 80.5 percent growth in profit at Rs 240 crore in the quarter ended September 2021.

Kotak Asset Management and Trustee Company's bottomline grew by 15.5 percent year-on-year to Rs 97 crore and Kotak Mahindra Capital Company registered a massive 314.3 percent growth YoY at Rs 58 crore, but Kotak Mahindra Life Insurance's profit declined 9.4 percent YoY to Rs 155 crore during the quarter.

The bank said consolidated customer assets grew by 16 percent year-on-year to Rs 287,831 crore as of September 2021. "Total assets managed / advised by the Group as of September 2021 were Rs 3,81,058 crore, up 40 percent over the corresponding period last fiscal."

Read More

Indian Overseas Bank net profit up 154%

State-run Indian Overseas Bank (IOB) has posted a 154 per cent increase in net profit during the second quarter of the current financial year ended on September 30 to Rs 376 crore, as compared to Rs 148 crore during the same quarter in 2020-21.

The lender's total income for the reporting quarter was down marginally by about 1 per cent to Rs 5,376 crore, from Rs 5,430 during the July to September quarter of 2020-21. The bank’s managing director and chief executive officer P P Sengupta said the reasons for the better financial numbers is owing to a better outlook in the economy due to higher rates of vaccination and better performance in retail, agriculture, MSME (RAM) and corporates.

The bank’s asset quality showed signs of improvement with its gross non-performing assets falling by 11.29 per cent from Rs 17,660 crore during the second quarter in 2020-21 to Rs 15,666 during the same quarter this fiscal. During the quarter GNPA reduced by Rs 286 crore. GNPA ratios improved to 10.66 per cent from 13.64 per cent on a quarter on quarter basis. The bank came out of RBI's Prompt Corrective Action (PCA) on September 29, 2021.

Reduction in NPA for the quarter ended September 2021 stood at Rs. 1798 crore as against Rs.1,616 crore achieved for quarter ended June 2021. Net NPA during the quarter was seen at Rs 3,741 crore with a ratio of 2.77 per cent as against Rs 3,998 crore with a ratio of 3.15 per cent during the previous quarter.

The bank's net interest margin was 2.43 per cent in Q2 FY22, as against 2.57 per cent a year ago. During the quarter under review, IOB’s operating profit zoomed by 5.42 per cent to Rs 1,419 crore, as compared to Rs 1,346 crore seen during the September quarter last fiscal. Total deposits were seen up by 9 per cent to Rs.2,50,890 crore as on September end as compared to Rs 2,42,941 crore as on the quarter ended in June 2021.

Gross advances stood at Rs 1,46,940 crore during the quarter compared to Rs 1,38,944 crore during the end of Q1. The bank said that it has grown its retail and agri segments and rebalanced the advance balance by consciously reducing the stressed sector in the corporate segment.

CASA of the bank improved to 42.57 per cent during the period under review compared to 40.26 per cent during the same time last financial year. Total CASA also increased to Rs 106,806 crore as against Rs 92,436 crore during the second quarter of 2020-21. Provision Coverage Ratio improved to 92 per cent as against 89.36 per cent in Q2FY21.

Read More

Central Bank of India net profit jumps 55% in Q2

Public sector Central Bank of India on Tuesday reported an over 55 percent jump in net profit at Rs 250 crore for the quarter ended September.

The lender had posted a net profit of Rs 161 crore during the same quarter of the previous fiscal.

However, total income of the bank during July-September period of 2021-22 was down at Rs 6,503.39 crore, as against Rs 6,762.36 crore in the year-ago period, it said in a regulatory filing.

Net interest income rose 5.99 percent to Rs 2,495 crore, as against Rs 2,354 crore earlier.

Net interest margin (NIM) improved from 3.21 percent to 3.36 percent on a year-on-year basis, registering an improvement of 15 basis points, it added.

On the asset quality front, net non-performing assets (NPAs or bad loans) reduced to 4.51 percent as of September 30, 2021, from 5.60 percent by end of the same month last year.

Gross NPAs moderated to 15.52 percent from 17.36 percent.

Also, the bank's cost of deposit declined to 3.84 percent from 4.45 percent for the reported quarter.

However, there was a slight uptick in provisions and contingencies for the quarter at Rs 1,048.52 crore, as against Rs 1,033.34 crore parked aside in the September 2020 quarter.

The state-owned lender said its slippage ratio stood at 1.45 percent as against 0.08 percent as there was a moratorium granted by RBI due to the COVID-19 pandemic. In the June 2021 quarter, it was 0.95 percent.

"Slippage ratio during the quarter increased due to slippage of two corporate accounts of Rs 1,150 crore. Had these accounts not slipped during the quarter then the slippage ratio for Q2FY22 would have been 0.67 percent," the bank said in a release.

Total business stood at Rs 5,12,094 crore as on September 30, 2021, compared to Rs 5,00,737 crore earlier, registering a growth of Rs 11,357 crore (2.27 percent) year-on-year.

Total deposits have increased by Rs 13,056 crore and stood at Rs 3,36,500 crore at the end of the quarter, from Rs 3,23,444 crore in the year-ago period, reflecting an increase of 4.04 percent, it added.

Read More

Canara Bank Q2 Net profit jumps three times

 

State-owned Canara Bank reported a three-times rise in net profit at Rs 1,333 crore for the September quarter, riding on treasury and non-interest income and higher cash recovery.

The bank’s net profit was Rs 444 crore in the year-ago period.

Its net interest margin (NIM), a key profitability parameter, however, dipped to 2.72% in the quarter under review from 2.82% in the same period last year. Net interest income (NII) was a shade lower at Rs 6,273 crore from Rs 6,305 crore while total income rose a slim 2.6% at Rs 21,331 crore.

Its operating profit grew 22% to Rs 5,604 crore as against Rs 4,597 crore. Treasury income jumped 95% to Rs 1,754 crore while non-interest Income rose 37.5% at Rs 4,268 crore. Provision to cover bad loans fell 24% at Rs 2678 crore with improvement in recovery of loans that were already covered.

Bank chief executive LV Prabhakar expects corporate loans to grow at 7.5% for the full year despite muted demand so far, raising hopes of pick up in industrial activities. He expects retail loans to continue to grow by over 10%.

Canara’s gross advances grew 5.8% year-on-year (YoY) to Rs 6.87 lakh crore while the corporate loan portfolio rose 2.2% to Rs 2.96 lakh crore. The retail lending book rose 10.46% to Rs 1.19 lakh crore.

The lender’s asset quality improved sequentially, with gross non-performing assets (NPA) ratio falling to 8.42% at the end of September from 8.5% three months back. Net NPA stood at 3.21% as against 3.46%.

Prabhakar said the bank with 14.37% capital adequacy is comfortably placed for growth and meeting regulations. The lender has just recently raised Rs 1,500 crore in AT-1 capital while the board has approved raising another 2500 crore each in AT-1 bonds and tier-2 bonds. It raised Rs 2500 crore through share sales during this quarter.

Read More

ICICI Bank reports highest ever net profit in Q2 as provisions fall

Country's second largest private sector lender ICICI Bank on October 23 recorded profit after tax of Rs 5,511 crore for the September 2021 quarter, increasing significantly by 30 percent compared to year-ago period, as provisions for bad loans declined, with improved asset quality performance. Double digit growth in net interest income, operating profit and other income also aided earnings for the quarter.

Net interest income, the difference between interest earned and interest expenses, has grown 25 percent to Rs 11,690 crore in Q2FY22, with 43 bps improvement YoY (11 bps QoQ) in net interest margin at 4 percent, said the bank in its BSE filing on October 23. One percent is equal to 100 basis points.

Loan and Deposits Growth

The bank further said total advances grew by 17 percent year-on-year to Rs 7.64 lakh crore in Q2FY22, with retail loan book (which accounted for 62.1 percent of total loan portfolio) growth at 20 percent, and 19 percent increase in domestic loan growth.

"The business banking portfolio grew by 43 percent year-on-year, and SME segment, comprising borrowers with a turnover of less than Rs 250 crore, registered a 42 percent YoY growth, for the September 2021 quarter," it added.

The bank, which had a network of 5,277 branches and 14,045 ATMs at September 2021, said total deposits increased by 17 percent year-on-year to Rs 9.77 lakh crore in Q2.

Asset Quality

Asset quality of the private sector lender improved further with increase recoveries & upgrades, and decline in NPA additions during the quarter. Gross non-performing assets (NPA) as a percentage of gross advances at 4.82 percent fell by 33 bps sequentially and net NPAs at 0.99 percent, the lowest since December 2014, declined 17 bps QoQ, in Q2FY22.

In absolute terms, "The net NPAs declined by 12 percent sequentially to Rs  8,161 crore at September 2021 from Rs 9,306 crore at June 2021," said ICICI Bank.

The bank further said the net addition to gross NPAs declined to Rs 96 crore  during Q2FY22 from Rs 3,604 crore in Q1FY22. The gross NPA additions declined to Rs 5,578 crore from Rs 7,231 crore in the same period.

"Recoveries and upgrades of NPAs, excluding write-offs and sale, increased to Rs 5,482 crore from Rs 3,627 crore on sequential basis. The gross NPAs written off were Rs 1,717 crore in Q2FY22," it added.

Excluding NPAs, the bank said the total fund based outstanding to all borrowers under resolution was Rs 9,684 crore or 1.3 percent of total advances at September 2021 compared to Rs 4,864 crore June 2021. "The bank holds provisions amounting to Rs 1,950 crore against these borrowers under resolution."

The loan and non-fund based outstanding to performing borrowers rated BB and below, reduced to Rs  12,714 crore from Rs 13,975 crore on quarter-on-quarter basis, said the bank.
Provisions. In addition, ICICI Bank continued to hold Covid-19 provisions of Rs 6,425 crore as of September 2021, the same level as June 2021.

The bank had provisions and contingencies at Rs 2,713.48 crore as of September 2021, declining 9.4 percent year-on-year and 4.8 percent quarter-on-quarter.

NII & PPOP

Non-interest income (other income) during the quarter grew by 19.1 percent YoY to Rs 4,797.18 crore, including few income, which contributed 79 percent to other income, grew 21 percent YoY to Rs 3,811 crore. However, there was a fall in treasury income to Rs 397 crore from Rs 542 crore YoY due to high base in Q2FY21 that included gain of Rs 305 crore from sale of shares in ICICI Securities.

Pre-provision operating profit (PPOP) during the quarter increased by 20 percent to Rs 9,915 crore compared to corresponding period previous fiscal.

The bank said with the increase in economic activity, disbursements across all retail products increased sequentially in Q2FY022. "Mortgage disbursements were close to the level seen in the quarter ended March 2021, reflecting the increase in demand coupled with the bank’s seamless customer onboarding experience through pre-approved offers and digitisation. Disbursements of personal loans and auto loans were also close to Q4FY21 levels."

The consolidated profit after tax (which included key subsidiaries and associates) was Rs 6,092 crore in Q2FY22, increasing from Rs 4,882 crore in Q2FY21.

Earlier this month, global rating agency Moody's has affirmed the long-term local and foreign current deposit ratings of ICICI Bank at Baa3. At the same time, its rating outlook has also been changed to stable from negative.

"The affirmation of ICICI Bank's deposit ratings and change in outlook to stable follows the change in outlook on the sovereign rating to stable. The previous negative outlook on the sovereign rating drove the negative outlook on the bank, because of strong linkages to the sovereign credit profile," said Moody's in its report dated October 6, 2021.

The private sector lender on October 1 acquired 9.9 percent equity stake in Midland Microfin, a non-banking financial company - microfinance institution, for Rs 52.42 crore.

Apart from this, in August, the bank had received approval from banking regulator Reserve Bank of India to re-appointment of Sandeep Bakhshi as Managing Director & CEO of the bank with effect from October 15, 2021 till October 3, 2023.

The stock has given significant return in the current financial year FY22, rising more than 30 percent with more than Rs 5 lakh crore in market capitalisation, outperforming Nifty Bank index by a strong margin which gained 21 percent in the same period. In fact both bank as well as index hit fresh record highs on Friday.

Read More

Bank of Maharashtra Q2 Net profit doubles

 

State-owned Bank of Maharashtra has doubled its net profit at Rs 264 crore in the September quarter as against Rs 130 crore in the year-ago period, riding on sharp rise in net interest income and recovery from the Dewan Housing Finance (DHFL) exposure.

Its net interest margin, a gauge for efficiency, has improved to 3.27 per cent from 2.57 per cent over the same period. Operating profit grew 40.22 per cent at Rs 1061 crore as against Rs 756 crore. Its net interest income grew 34 per cent at Rs 1500 crore.

The bank recovered Rs 258 crore following DHFL's corporate resolution exercise.

Its asset quality also improved with gross non-performing assets ratio falling to 5.6 per cent at the end of September compared with 8.8 per cent a year ago. Net NPA reduced to 1.7 per cent from 3.3 per cent. Its provision coverage ratio was at 92.4 per cent.

The Pune-based lender grew its advances by 11.44 per cent year-on-year to Rs 1.15 lakh crore. "We are envisaging credit growth of 14-15 per cent for the entire FY22," chief executive AS Rajeev said.

It raised Rs 1,000 crore in bonds Wednesday to augment capital. The fund is raised at 7.8 per cent coupon.

"We have decided to raise another Rs 1000 crore in tier 2 bonds later in the year to keep its capital adequacy ratio (CAR) at around 14.5 per cent level," the CEO said.

Its CAR now stands at 14.67 per cent, an improvement from 13.18 per cent a year back.

Rajeev said the bank may consider raising equity capital in the first quarter next fiscal which would help it bring down government’s holding from 91 per cent. It had raised Rs 403 crore of equity through share sales to institutional investors that helped pare government holding marginally from 93.33 per cent.

The bank restructured loans worth Rs 1181 crore in the quarter under review, taking the total restructuring of standard loans to Rs 6,000 crore. The micro small and medium enterprise (MSME) borrowers accounted for about Rs 2400 crore of loan restructuring while restructuring of retail loans amounted to Rs 2,077 crore and corporate loans amounted to Rs 1000 crore. The balance amount is related to the farm sector.

Read More

IDBI Bank Q2 results: Net profit up 75%

IDBI Bank reported a 75 per cent year-on-year (yoy) increase in second quarter standalone net profit at ₹567crore, supported by a huge write-back in provisions for non-performing assets (NPAs) and lower tax expense.

The Bank had posted a net profit of ₹324 crore in the year ago quarter.Net interest income increased 9 per cent yoy in the reporting quarter to ₹1,854 crore (₹1,694 crore in the year ago quarter).

Other income, including income from non-fund based banking activities such as commission, fees, earnings from foreign exchange and derivative transactions, and profit and loss from sale of investment, declined about 4 per cent yoy at ₹846 crore (₹881 crore).

The received a write-back of ₹1,426 crore in provisions for NPAs against ₹165 crore in the year ago quarter. Tax expense burden was lower at ₹215 crore (₹347 crore).

As at September-end 2021, gross advances barely nudged up to ₹1,64,506 crore (₹1,63,841 crore as at September-end 2020).

Rakesh Sharma, MD & CEO, said the Bank has built up a sanctions pipeline in the mid and large corporate segments and disbursals are expected to pick up from year-end onwards.

The Bank expects to grow its corporate loan book by about ₹6,000 crore in the current financial year.

Samuel Joseph, Deputy Managing Director, said the Bank has an exposure of about ₹400 crore to the SREI group, which is undergoing corporate insolvency resolution process, and has made 100 per cent provision towards this exposure. IDBI Bank recovered ₹196 crore from DHFL.

P Sitaram, CFO, emphasised that the Bank will grow the corporate loan book even as the emphasis will continue to be on structured retail loans.

Gross NPAs declined about ₹1,186 crore during the reporting quarter to ₹34,408 crore.

Gross NPAs as a percentage of gross advances declined to 20.92 per cent against 21.48 per cent in the preceding quarter. Net NPAs, however, nudged up to 1.62 per cent of net advances against 1.56 per cent.

Fresh slippages rose by ₹1,438 crore (₹1,332 crore in the first quarter). The Bank settled NPAs aggregating ₹1,436 crore (₹587 crore).

ends.

Read More

Federal Bank net profit jumped 50% on lower provisions

 

Private sector lender Federal Bank reported a near 50 per cent jump in net profit for the September quarter on lower provisions and improvement in asset quality even as its total income shrunk.

The market gave a thumbs up to the numbers with the shares rising to their 52-week high of Rs 105.6 on BSE. The prices settled at Rs 104.5, which is about 8 per cent higher than the previous close.

The net profit stood at Rs 460 crore compared with Rs 308 crore in the year-ago period. Total income fell about 3 per cent at Rs 3824 crore from Rs 3937 crore.

Operating profit fell by about 9 per cent at Rs 865 crore from Rs 947 crore over the same period. However, a 54 per cent lower provisions at Rs 245 crore helped the net profit surge. Amortisation of the Rs 166 crore of additional liability on account of revision in family pension also helped.

The bank's asset quality improved on a sequential basis with the gross non-performing assets ratio being at 3.24 per cent at the end of September as compared with 3.50 per cent a quarter ago. Its net NPA stood at 1.12 per cent as against 1.23 per cent earlier.

The lender's net interest income, the difference between interest earned and interest expended, rose about 7 per cent at Rs 1,479 crore. Net interest margin for the quarter rose to 3.2 per cent from 3.13 per cent in the year-ago period.

"Our credit cost was negative in this quarter helped by reduced slippages and higher recovery and upgrade," managing director Shyam Srinivasan said.

The lender's gross advances grew 9.7 per cent year-on-year to Rs 1.37 lakh crore while deposits rose at almost the same rate to Rs 1.72 lakh crore.

Its current and savings account ratio to total deposits reached 36 per cent, an all-time high for the bank, Srinivasan said.

Read More

YES Bank Q2 Results: Net profit soars 74% YoY

YES Bank today reported a 74.3 per cent year-on-year growth in net profit to Rs 225 crore for the quarter ended September as against analysts’ expectations of a Rs 31 crore net loss.The lender’s net interest income in the quarter, however, fell 23.4 per cent on-year to Rs 1,512 crore, which was below analysts’ expectations.

The healthy bottomline performance of the lender was thanks to a sharp decline in provisions. YES Bank’s provisions for bad loans declined 65 per cent year-on-year to Rs 377 crore.

The lender also reported a marked improvement in its asset quality in the quarter as gross non-performing loans ratio fell to 15 per cent from 15.6 per cent in the previous quarter. Similarly, net NPA ratio came in at 5.5 per cent as against 5.8 per cent in the previous quarter.

YES Bank said gross restructured loans at the end of the quarter were at Rs 6,184 crore. Overdue book, loans on which payments are due for more than 30 days but less than 90 days, declined Rs 6,000 crore sequentially.

Impressively, YES Bank’s current account-savings account ratio increased to 29.4 per cent in the reported quarter from 27.4 per cent in the previous quarter. At the same time, the portion of retail loans in total loan disbursements in the quarter improved 100 basis points sequentially to 55 per cent.

YES Bank’s advances posted a 3.5 per cent year-on-year growth but rose 5.6 per cent on a sequential basis. Deposits showed a remarkable 30 per cent on-year growth indicating that the lender is winning back the trust of customers.

However, the operating performance of the lender was underwhelming as operating profit declined 45.8 per cent on-year to Rs 678 crore. The net interest margin in the quarter fell 2.2 per cent from 3.1 per cent in the year-ago quarter.

Read More