Bank of India(BoI) Q2 Net profit jumps 63% , asset quality improves
Bank of India’s (BoI) net profit during the second quarter of financial year 2024-25 (Q2 FY25) rose 63 per cent year-on-year (Y-o-Y) to Rs 2,374 crore, backed by a 49 per cent rise in non-interest income, including treasury gains and recoveries.
Sequentially, the Mumbai-based lender’s net profit increased by 39.4 per cent from Rs 1,703 crore in June 2024 (Q1 FY25). Its stock closed 0.63 per cent higher at Rs 112.25 per share on the BSE on Monday.
BoI’s net interest income (NII) expanded four per cent Y-o-Y to Rs 5,986 crore in Q2 FY25 compared to Rs 5,740 crore in the same quarter a year ago. Net interest margin (NIM) declined to 2.82 per cent in Q2 FY25 from 3.08 per cent in Q2 FY24. Sequentially, NIM declined from 3.07 per cent in Q1 FY25.
Referring to pressure on NII and margins, Rajneesh Karnatak, managing director and chief executive, BoI, said, “Corporate loans worth Rs 20,000 crore were paid off in July, and credit growth mostly happened in August and September. Now, disbursements have picked up, which will enhance NII and margins. NIMs will rise to 2.9 per cent by the end of FY25,” Karnatak said in a post-results virtual media interaction.
The bank’s non-interest income increased by 49 per cent Y-o-Y to Rs 2,518 crore. Gains from the sale and revaluation of investments grew multifold to Rs 730 crore in Q2 FY25 from Rs 81 crore in Q2 FY24. Recovery from written-off accounts grew 22 per cent Y-o-Y to Rs 685 crore, according to an analyst presentation.
The lender’s provisions for non-performing assets (NPAs) more than doubled to Rs 1,427 crore in Q2 FY25 compared to Rs 678 crore in Q2 FY24. The bank made Rs 200 crore in provisions for a lumpy telecom public sector unit (PSU) account that became an NPA.
Karnatak said the bank has a Rs 1,000 crore exposure to this telecom PSU account and is in dialogue with the management for resolution. The bank also front-loaded ageing provisions for accounts that had already become NPAs.
The asset quality profile improved, with gross NPAs declining to 4.41 per cent in September 2024 from 5.84 per cent in September 2023. Net NPAs also declined from 1.54 per cent in September 2023 to 0.94 per cent in September 2024. The provision coverage ratio (PCR), including written-off accounts, improved to 92.22 per cent in September, compared to 89.58 per cent a year ago.
Advances grew by 14.51 per cent Y-o-Y to Rs 6.21 trillion in Q2 FY25. Retail advances grew by 21.61 per cent Y-o-Y to Rs 1.21 trillion in September 2024. The bank expects overall credit growth to be 14 per cent in FY25, backed by a pipeline of sanctioned credit of Rs 70,000 crore in corporate, retail, agriculture, and micro, small, and medium enterprises (MSME) segments, he said.
Total deposits increased by 10.15 per cent Y-o-Y to Rs 7.75 trillion. The share of low-cost deposits — current account and savings account (CASA) — in domestic business declined to 41.18 per cent in September 2024 from 43.13 per cent a year ago.
The bank has guided for a 13 per cent growth in deposits for FY25 and will also raise Rs 5,000 crore through infrastructure bonds to finance credit.
The bank’s capital adequacy stood at 16.63 per cent, with common equity tier-1 at 13.52 per cent at the end of September 2024. The bank plans to raise debt capital of Rs 2,500 crore by issuing Tier-I bonds in the second half. There are no plans for raising equity capital, Karnatak added.
State Bank of India (SBI) Q2 PAT jumps 28% YoY
Public sector lender State Bank of India (SBI) on Friday reported a standalone net profit of Rs.18,331.44 crore for the quarter ended September 30, 2024 (Q2FY25), which was up by 27.92% over Rs.14,330.02 crore reported by the company in the year-ago period (Q2FY24). Net interest income (NII) for the quarter ended September, increased by 5.37% year-over-year to reach Rs.41,620 crore, up from Rs.39,500 crore during the corresponding period last year.
The operating profit surged by 51% year-on-year to Rs.29,294 crore in the period from July to September 2024, rising from Rs.19,417 crore during the same period last year.
The company announced in an exchange filing that the domestic net interest margin for the September quarter fell by 16 basis points to 3.27%, down from 3.43% a year earlier.
The gross advances in the second quarter increased by 15% year-on-year to reach Rs.39.2 lakh crore, whereas the growth in deposits was significantly lower at 9% year-on-year, amounting to Rs.51.17 lakh crore.
The asset quality of SBI showed improvement on a sequential basis. In absolute terms, Gross NPA was recorded at Rs.83,369 crore, down from ₹84,226 crore in June, while Net NPA decreased to Rs.20,294 crore from Rs.21,555 crore during the June quarter. For the September quarter, Gross NPA was at 2.13%, a decline from 2.21% in June, while Net NPA was at 0.53%, compared to 0.57% in the previous quarters.
Gross slippages for the quarter fell to Rs.4,951 crore, down from Rs.8,707 crore in the June quarter. Recoveries and upgrades also saw a sequential decline, decreasing to Rs.2,600 crore from Rs.3,666 crore in June.
The Capital Adequacy Ratio (CAR) was recorded at 13.76% at the conclusion of the second quarter, accompanied by a CET-1 ratio of 9.95% and a tier-1 ratio of 11.32%.
Canara Bank Q2 Net profit rises 11%
Public Sector lender Canara Bank on October 29 reported 11% rise in net profit at Rs 4,015 crore for the quarter ended September 30, 2024.
Its total income rose 10% to Rs 34,721 crore in Q2FY25.
The bank's gross NPA (non-performing asset) ratio decreased to 3.73% for the September 2024 quarter, down from 4.14% a quarter ago, reflecting improved asset quality.
The net NPA ratio year-on-year was reduced by 24 basis points to 1% during the quarter, the lender said.
Provision Coverage Ratio (PCR) stood at 90.89% as at September 2024 against 89.22% as at June 2024, 88.73% as at September 2023.
Global Business increased by 9.42% on-year to Rs 2.36 lakh crore as at September 2024 with Global Deposits at Rs 1.35 lakh crore, 9.34% on-year and Global Advance (gross) at Rs 1.02 lakh crore 9.53% on-year.
Domestic Deposit of the Bank stood at Rs 1.24 lakh crore as at September 2024 with growth of 8.34% on-year.
Domestic Advances (gross) of the Bank stood at Rs 9.54 lakh crore as at September 2024 grew by 8.64% on-year.
Punjab National Bank (PNB) Q2FY25 Net profit increases 145%
Punjab National Bank (PNB) reported a substantial 2.5x year-on-year surge in its standalone net profit to Rs 4,303.5 crore for the quarter ending September 2024, compared with Rs 1,756.1 crore in the same period a year earlier. The jump in profit was helped by an over Rs 3,150-crore fall in new provisions recorded during the quarter, while the interest income surged and asset quality improved.
The PSU bank’s NII for the July-September quarter rose by 6 percent year-on-year to Rs 10,517 crore, up from Rs 9,923 crore last year.
The new provisions and contingencies recorded during the quarter fell sharply to just Rs 288 crore from Rs 3,444.2 crore, boosting the public sector lender’s bottomline.
PNB's gross NPA ratio improved to Rs 4.48 percent at the end of September, from 4.98 percent at the end of June. Net NPA ratio too improved to 0.48 percent from 0.6 percent in the preceding quarter.
The new provisions and contingencies recorded during the quarter fell sharply to just Rs 288 crore from Rs 3,444.2 crore, boosting the public sector lender’s bottomline.
PNB's gross NPA ratio improved to Rs 4.48 percent at the end of September, from 4.98 percent at the end of June. Net NPA ratio too improved to 0.48 percent from 0.6 percent in the preceding quarter.
IDFC First Bank Q2 Net profit declines 73%
IDFC First Bank announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Saturday, October 26, reporting a decline of 73.3 per cent in net profit to ₹200.7 crore, compared to ₹751.3 crore in the corresponding period last year. The private sector bank was formed by merging the banking arm of project financer Infrastructure Development Finance Company (IDFC) and Capital First.
The bank said its net profit was impacted by prudent provisions of ₹568 crore, including Rs. 315 crore in the microfinance institution or MFI business (due to stress in the MFI industry) and ₹253 crore in one Maharashtra-based toll account (recent waiver of toll fees at Mumbai entry points).
IDFC First Bank's net interest income (NII)—the difference between interest earned and paid—rose 21 per cent to ₹4,788 crore compared to ₹3,950 crore in the year-ago period. The bank's core operating profit (excluding trading gain) grew by 28 per cent year-on-year (YOY) from Rs. 1,456 crore in Q2 FY24 to Rs. 1,857 crore in the year-ago period.
Including trading gains, core operating profit increased by 30 per cent year over year. Asset quality improved, as gross non-performing assets (NPA) were 1.92 per cent as of September 30, 2024, against 2.11 per cent as of September 30, 2023. The net NPA or bad loans was 0.48 per cent as of September 30, 2024, against 0.68 per cent as of September 30, 2023.
Provisions for Q2 FY25 stood at ₹1,732 crore, primarily because of a prudent provisioning buffer of ₹568 crore created for MFI business ( ₹315 crore). Operating income grew 21 per cent from Rs. 5,380 crore in Q2 FY24 to Rs. 6,515 crore in Q2 FY25. Operating expenses grew by 18 per cent YoY from Rs. 3,870 crore in Q2 FY24 to Rs. 4,553 crore in Q2 FY25.
Customer deposits increased by 32.4 per cent YoY from Rs. 1,64,726 crore as of September 30, 2023, to ₹2,18,026 crore as of September 30, 2024. Retail deposits grew by 37.4 per cent YoY to Rs. 1,75,300 crore from Rs. 1,27,595 crore in the year-ago period. CASA deposits grew by 37.5 per cent from Rs. 79,468 crore as of September 30, 2023 to Rs. 1,09,292 crore.
IDBI Bank Q2 results: PAT up 39%
IDBI Bank on Friday reported a 39 per cent surge in net profit at Rs 1,836 crore for the quarter ended September 30, 2024 on the back of improvement in interest income.
The LIC-controlled bank had earned a net profit of Rs 1,323 crore in the year-ago period.
Total income rose to Rs 8,754 crore in the quarter under review, from Rs 6,924 crore in the same period a year ago, IDBI Bank said in a regulatory filing.
Net interest income of the bank improved to Rs 3,875 crore in the July-September quarter, from Rs 3,066 crore in the September quarter of 2023, registering a growth of 26 per cent.
Net interest margin increased to 4.87 per cent, from 4.33 per cent at the end of September 2023.
Asset quality of the bank witnessed an improvement with gross non-performing assets (NPAs) rising to 3.68 per cent of gross advances at the end of the September quarter of 2024, as against 4.90 per cent a year ago.
Net NPAs or bad loans also declined to 0.20 per cent, as against 0.39 per cent in the year-ago period.
Capital Adequacy Ratio of the bank increased to 21.98 per cent, from 21.26 per cent at the end of September 2023.
ICICI Bank Q2 net profit jumps 14% on-year
ICICI Bank's Q2 FY25 standalone net profit rose by 14.5 percent on-year to Rs 11,746 crore, from Rs 10,261 crore in the year-ago period, exceeding Street expectations. A Moneycontrol poll of brokerages had forecasted the bank’s profit at Rs 10,989 crore.
The private sector lender’s net interest income (NII) increased by 9.5 percent to Rs 20,048 crore, but it missed Moneycontrol poll estimate of Rs 20,845 crore. ICICI Bank reported its net interest margin (NIM) at 4.27 percent, which fell from 4.36 percent seen in the previous quarter and 4.53 percent in the year-ago period.
The bank also reported non-interest income growth of 10.8 percent to Rs 6,496 crore, with a 13.3 percent rise in fee income to Rs 5,894 crore, largely driven by contributions from retail, rural, and business banking customers.
ICICI Bank's loan portfolio showed steady expansion, with domestic loans growing 15.7 percent year-on-year to Rs 12.43 lakh crore. Total deposits at the end of the quarter were also up 15.7 percent on-year at Rs 14.98 lakh crore, with the average CASA ratio recorded at 38.9 percent.
Asset quality continued to be robust, with the gross NPA ratio narrowing to 1.97 percent at September 30, 2024 compared to 2.15 percent on June 30, 2024. Net NPA ratio remained nearly flat at 0.42 percent at the end of September, against 0.43 percent in the previous quarter. The provisioning coverage ratio on non-performing loans stood at 78.5 percent.
