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