City Union Bank Q3 results- Net profit declines 12%

Private sector City Union Bank on Wednesday posted a decline of 11.7 per cent in its net profit to Rs 169.93 crore for the quarter ended in December.The bank had registered a net profit of Rs 192.43 crore in the corresponding period of the preceding financial year.

Bank's total income during the third quarter of financial year 2020-21, however, moved up to Rs 1,277.80 crore as against Rs 1,203.24 crore in the same period of 2019-20, City Union Bank NSE 0.52 % said in a regulatory filing.

Even as the interest income fell 1.2 per cent to Rs 1,048.03 crore during the reported quarter, the bank's income from other sources jumped 61.4 per cent to Rs 229.77 crore.

Other income relates to income from non-fund based banking activities, including commission, fees, gains from securities transactions, ATM sharing fees, recoveries from written-off accounts and other miscellaneous income.

On the asset front, the bank showed improvement with the gross non-performing assets (NPAs) falling to 2.94 per cent of gross advances as on December 31, 2020 from 3.50 per cent in the year ago period.

In value terms, the gross NPAs or bad loans stood at Rs 1,071.69 crore, down from Rs 1,185.43 crore.Net NPAs too came down at 1.47 per cent (Rs 527.15 crore) from 1.95 per cent (Rs 649.41 crore).

Provisions for bad loans and contingencies were more than doubled to Rs 218.50 crore for the quarter under consideration from Rs 81 crore in the year-ago period.

City Union Bank said during the quarter, it has restructured 60 accounts amounting to Rs 321.06 crore."As of December 31, 2020, 233 accounts amounting to Rs 807.07 crore were restructured; the bank holds Rs 26.28 crore towards provision for such accounts," it said.

Further, the bank said it has made an additional provision of Rs 125 crore during the quarter towards contingency arising out of the COVID pandemic and holds a total provision of Rs 465 crore as of December 31, 2020.

Bank's provision coverage ratio stood at 73 per cent at the end of the third quarter of the financial year 2020-21.

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IDFC First Bank posts net profit in Q3 as provisions decline

IDFC First Bank reported a net profit of Rs 130 crore in the quarter ended December 31, 2020, as provisions declined significantly. The bank, which came into existence after the merger of IDFC Bank and Capital First, had posted a loss of Rs 1,639 crore in the corresponding quarter last fiscal. In sequential terms, the lender had reported a profit of Rs 101 crore in the preceding quarter.

Net interest income (NII) grew by 14 per cent year-on-year to Rs 1,744 crore in Q3 FY21 from Rs 1,534 crore in Q3 FY20, as per regulatory filing by the bank. It grew by 5 per cent quarter-on-quarter from Rs 1,660 crore in Q2 FY21. NII for the current quarter includes the impact of provision for interest reversal for proforma NPA cases, the lender informed. Net interest margin (NIM) improved to 4.65 per cent in Q3 FY21 as compared to 3.86 per cent in Q3 FY20 and 4.57 per cent in Q2 FY21.

"The total provisions for Q3 FY21 were Rs 595 crore as compared to Rs 2,305 crore (including provision of Rs 1,622 crore on one telecom exposure) in Q3 FY20 and as compared to Rs 676 crore in Q2 FY21. This includes additional COVID provisions of Rs 390 crore made during the quarter," IDFC First Bank said.

Total income (including trading gain) grew 24 per cent YoY to Rs. 2,616 crore in Q3 FY21 from Rs 2,113 crore in Q3 FY20. It grew by 14 per cent QoQ from Rs 2,288 crore in Q2 FY21. Pre-Provisioning Operating Profit (PPOP), including trading gains worth Rs 290 crore, grew 13 per cent YOY to Rs 773 crore in Q3 FY21 as compared to Rs 682 crore in Q3 FY20 (including trading gains of Rs 142 crore). It de-grew by 4 per cent QoQ from Rs 803 crore in Q2 FY21 (including trading gains of Rs 337 crore).

Current Account and Savings Account (CASA) deposits increased 150 per cent YoY to Rs 40,563 crore as on December 31, 2020, from Rs 16,204 crore as on December 31, 2019. Meanwhile, CASA ratio improved to 48.31 per cent as on December 31, 2020, from 24.06 per cent as on December 31, 2019. Average CASA Ratio also improved to 44.66 per cent as on December 31, 2020, from 20.88 per cent as on December 31, 2019.

IDFC First Bank's gross NPA (GNPA) reduced to 1.33 per cent as of December 31, 2020, from 1.62 per cent as of September 30, 2020. Its net NPA (NNPA) reduced to 0.33 per cent as of December 31, 2020, from 0.43 per cent as of September 30, 2020. Provision Coverage Ratio (PCR) was 75.14 per cent as of December 31, 2020 as compared to 57.34 per cent as of December 31, 2019.

"The above figures include the impact of the Hon. Supreme Court notification to stop NPA classification post August 31, 2020, till further orders. Without this impact, the proforma GNPA as on December 31, 2020 would have been 4.18 per cent and the proforma NNPA would have been 2.04 per cent. As compared to Long Term Average of 4 pre-COVID quarters, the proforma GNPA is higher by 155 bps," the bank said.

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ICICI bank Q3 profit rises 19%

Private sector lender ICICI Bank on Saturday reported 19% increase in net profit at ₹4,940 crore for the quarter ending 31 December, 2020. It was ₹4,146 crore a year ago.

Total income of country's second largest private sector lender by assets increased 3% to ₹24,416 crore as compared to ₹23,638 crore in year-ago period.

Total deposits grew by 22% year-on-year to ₹8,74,348 crore at 31 December, 2020. The lender saw 19% growth in average current and savings account (CASA) deposits in Q3FY21 and average CASA ratio was 41.8% in Q3FY21. Term deposits grew by 26% year-on-year at 31 December, 2020

The lender’s net interest income (NII), the difference between interest earned and interest expended, rose 16% year-on-year (y-o-y) to ₹9,912 crore in Q3 of FY21. Net interest margin (NIM), a key measure of profitability, expanded 10 basis points (bps) sequentially to 3.67%. On the other hand, the bank’s provisions rose 31.6% y-o-y to ₹2,742 crore.

The reported gross non-performing assets ratio was at 4.38%, but would have been 5.42% if not for the Supreme Court order asking banks not to classify non-paying loan accounts as NPAs after the end of the loan repayment moratorium.

Its overall provisions increased to ₹2,741 crore from the year-ago period's ₹2,083 crore, but lower when compared to the preceding quarter's ₹2,995 crore, as per its exchange filing.

It made a contingency provision of ₹3,012.16 crore for borrower accounts not classified as NPAs pursuant to the interim order of the Supreme Court and utilised ₹1,800 crore of the ₹8,772.30 crore in provisions for the pandemic made earlier.

As at December 31, 2020, the bank held an aggregate COVID-19 related provision of ₹9,984.46 crore, including contingency provision amounting to ₹3,509.46 crore, it said.

It said the provisions held by it are more than what is required by the RBI and the bank's capital and liquidity position are strong.

Its overall capital adequacy stood at 18.04 per cent as of December 31, 2020.

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Canara Bank Q3 standalone net profit dips 9%

State-run Canara Bank on Wednesday reported a 9 per cent decline in its standalone net profit to Rs 696 crore on higher provisioning.

The bank amalgamated Syndicate Bank with itself effective April 1, 2020. The financials as of December 2019, March, June and September 2020 are combined figures of both banks, the bank said in its investors presentation.

The amalgamated entity had posted a standalone profit after tax of Rs 764 crore in the December quarter of the previous fiscal. The pre-amalgamation standalone profit in Q3 FY21 stood at Rs 329.62 crore. The bank further reported a consolidated net profit of Rs 739.20 crore in the third quarter ended December of the current fiscal as against Rs 406.43 crore during the year-ago period. However, the consolidated profit of Q3FY21 is not comparable year-on-year.

"We want to make our balance sheet very strong and it should be future ready," the bank's managing director and CEO L V Prabhakar told reporters.

The bank has an additional provisioning of Rs 1,901 crore as of today. In Q3, it did Rs 738 crore of floating provision. Apart from that, it has not recognised Rs 413 crore of interest on probable NPA. If it had added both of these, the profit could have gone more than Rs 1,500 crore, he stated.

Net-interest income grew by 14.58 per cent to Rs 6,081 crore as against Rs 5,307 crore. Its domestic net interest margins improved 26 bps.

The lender reported a 210 per cent growth in its treasury income at Rs 2,016 crore as against Rs 650 crore in the same quarter of the previous fiscal.

"The mix of the securities which we have has given us the leverage encash the situation and to book profit. We have a robust risk management system and it has helped us," he said.

Gross non-performing assets (GNPA) ratio reduced to 7.46 per cent from 9.82 per cent last year. Net NPAs also declined to 2.64 per cent from 5.62 per cent.

Prabhakar expects GNPA to be at 8.75 per cent and net NPA at 3.90 per cent by March-end.

Fresh slippages in the quarter stood at Rs 395 crore. Total cash recovery including recovery from written-off accounts stood at Rs 2,893 crore.

The lender expects recoveries worth Rs 6,000-7,000 crore in the fourth quarter, he said.

Prabhakar said the lender's one-time restructuring book stands at Rs 11,000 crore.

Provision coverage ratio (PCR) improved to 84.89 per cent from 70.37 per cent in the same quarter of the previous fiscal.

Its capital adequacy ratio (CRAR) stood at 13.69 per cent as at December 2020. Out of which tier-I is 10.45 per cent and tier-II is 3.24 per cent.

Its domestic advances grew 7.55 per cent to Rs 644,826 crore, and its retail lending portfolio increased by 9.33 per cent to Rs 113,835 crore.

The bank's domestic deposit rose 9.49 per cent to Rs 928,325 crore.

It expects a deposit growth of 8 per cent and credit growth of 6 per cent by the end of this fiscal.

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Kotak Mahindra Bank Q3 results: Net profit rises 16%

Kotak Mahindra Bank today reported a 16% year-on-year rise in its standalone net profit for third quarter ended December 31. Net profit rose to Rs.1,854 crore, from Rs.1,596 crore in Q3FY20, up 16%. Share prices were up about 2% in noon trade.

Highlights of Kotak Mahindra Bank Q3 results:

Net Interest Income (NII) for Q3FY21 increased to Rs.4,007 crore, from Rs.3,430 crore in Q3FY20, up 17%.

Net Interest Margin (NIM) for Q3FY21 was at 4.51%.

CASA ratio as at December 31, 2020 stood at 58.9% compared to 53.7% as at December 31, 2019.

Advances as at December 31, 2020 were at Rs.214,103 crore ( Rs. 204,845 crore as at September 30, 2020 and Rs.216,774 crore as at December 31, 2019)

As at December 31, 2020, GNPA was 2.26% & NNPA was 0.50%.

"The Bank has not classified any NPAs since August 31, 2020, basis the interim order of Hon. Supreme Court. Had the Bank classified the borrowers more than 90 days overdue on December 31, 2020 as NPA, GNPA would be 3.27% September 30, 2020: 2.70%); NNPA would be 1.24% (September 30, 2020: 0.74%). The Bank has, however, made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium," the bank said.

Capital adequacy ratio of the Bank as per Basel III, as at December 31, 2020 was 21.5% and Tier I ratio was 20.9%

COVID related provisions as at December 31, 2020 stood at Rs.1,279 crore. In accordance with the Resolution Framework for COVID-19 announced by RBI on August 6, 2020, as at December 31, 2020, the Bank has approved, for certain eligible borrowers, one-time restructuring of 0.28% of net advances.

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RBL Bank Q3 results: Net profit rises 110%, asset quality improves

Private sector RBL Bank on Thursday posted a 110% rise in its net profit year-on-year at Rs.147.1 crore in the quarter ended December 31, 2020. In the corresponding quarter, the Mumbai-headquartered bank posted a net profit of Rs.6,995 crore.

Its total revenue grew by 6% year-on-year to Rs.1,488 crore as against Rs.1,388 crore a year ago, RBL Bank said in a regulatory filing. The net interest income fell 2% to Rs.932 crore.

The bank's gross non-performing assets fell to 1.84% of the gross advances at the December quarter, compared to 3.33% in the corresponding quarter last year. Net NPAs also fell 0.71% as against 2.07% in the year-ago period.

The December-quarter provisions and contingencies stood at Rs.610 crore versus 623 crore year ago.

RBL also said that its Q3 asset quality improved on a sequential basis in absolute as well as percentage terms.

"COVID-19 is a global pandemic, which continues to spread across the globe and has contributed to increase in volatility in financial markets and an unprecedented level of disruption on socio-economic activities. The extent to which the COVID-19 pandemic will impact the Bank's operations and asset quality will depend on future developments, which are highly uncertain," the private lender said in a regulatory filing.

During the quarter and nine months ended December 31, 2020, the bank has raised additional capital of Rs.156,600 lakh on preferential basis through an issuance of 88,474,577 fresh equity share of face value of Rs.10 each at a price of Rs.177.

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IDBI Bank Q3 results: Net profit up

IDBI Bank on Thursday reported a standalone net profit of Rs 378 crore for December quarter of the current fiscal year as bad loans shrank.

The bank had posted a net loss of Rs 5,763 crore for the year-ago period.

Total income, however, fell during the quarter under review at Rs 5,932.25 crore as against Rs 6,215.60 crore in the same period of 2019-20 as interest income came down.

Interest income of the lender was down at Rs 4,563.98 crore during the quarter as against Rs 4,937.24 crore in the year-ago period, the bank said in a regulatory filing.

However, the net interest income grew 18 per cent to Rs 1,810 crore.

Net Interest Margin (NIM) improved by 60 basis points to 2.87 per cent in the third quarter as compared to 2.27 per cent in the same period a year ago, IDBI Bank said in a release.

The bank's asset quality improved as gross non-performing assets (NPAs) or bad loans reduced to 23.52 per cent of the gross advances as of December 31, 2020 as against 28.72 per cent by the same period a year ago and 25.08 per cent by the end of September 2020.

Net NPAs decreased to 1.94 per cent from 5.25 per cent.

In value terms, gross NPAs were worth Rs 37,559.39 crore at December-end 2020 as against Rs 49,502.68 crore by the end of same month a year ago. Net NPAs were valued at Rs 2,410.90 crore, lower than Rs 6,805.49 crore.

However, the overall provisions for bad loans and contingencies were kept higher at Rs 796.31 crore for December quarter 2020-21 as against Rs 521.95 crore kept aside for the year-ago period.

But out of this, the provisions for bad loans were substantially lower at Rs 48.52 crore as against Rs 440 crore a year ago.

Provision Coverage Ratio (including technical write-offs) improved to 97.08 per cent as on December 31, 2020 from 92.41 per cent a year ago and 95.96 per cent by the end of September 2020.

IDBI Bank said it raised equity capital of Rs 1,435.18 crore during the quarter through QIP.

The tier 1 capital improved to 12.22 per cent from 10.16 per cent and CRAR (capital to risk weighted assets ratio) improved to 14.77 per cent from 12.56 per cent, it added.

Among others, during the quarter ended December 2020, the bank has sold 23 per cent stake out of 48 per cent holding in its joint venture IDBI Federal Life Insurance Company (now Ageas Federal Life Insurance Company Ltd).

The post-sale holding in the joint venture is 25 per cent as on December 31, 2020, the bank said.

Further, in accordance with the RBI guidelines relating to COVID-19, the bank has cumulative COVID-19 related provision of Rs 436 crore as on December 31, 2020.

The provision made by the bank is more than minimum required as per the RBI guidelines, it said.

The bank has made provision of Rs 70 crore during the quarter (Rs 270 crore as on September 30, 2020 has been continued), towards the provisioning requirement for cases to be restructured under the resolution framework.

The cumulative provision is Rs 340 crore as on December 31, 2020, said the lender.

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Axis Bank Q3 results: Net profit drops 36% , NII rises 14%

 

Axis Bank on Wednesday reported a 36% year-on-year drop in net profit to Rs.1,116.6 crore for the quarter ended 31 December. The private lender reported a net profit of Rs.1,757 crore for the corresponding quarter last year.

"Reported profits after tax for the quarter are adversely impacted to the extent of around Rs.1,050 crore on account of prudent expenses and provisioning charges during the quarter," the bank said.

The bank’s operating profit for the quarter grew 6% year-on-year to Rs.6,096 crore. The core operating profit for the quarter grew 10% year-on-year to Rs.5,754 crores.

The private lender's net interest income, the difference between interest earned and interest, rose 14% year-on-year to Rs.7,372.7 crore. NII in Q3FY20 was at Rs.6,452.98 crore. NII before interest reversals increased 19% YOY to Rs.7,987 crore, the bank said in the filing. Net interest margin (NIM) for Q3FY21 was 3.59% as against 3.57% for Q3FY20. NIM before interest reversals stood at 3.89%, the bank added.

Provisions in the quarter under review increased 32.7% year-on-year to Rs.4,604.28 crore, the bank said in the filing.

In the December quarter, the bank reported gross NPA and net NPA at 3.44% and 0.74% respectively as against 4.18% and 0.98% during the September quarter. The restructured loans as at 31st December, 2020 stood at Rs.2,709 crore that translates to 0.42% of the gross customer assets, the bank said.

Commenting on the bank's performance in Q3, Amitabh Chaudhry, MD&CEO, Axis Bank said, “As the economy turns around, we see fresh enthusiasm and positivity returning to both retail and corporate business. Digital has been one of our biggest strengths and we have fortified it further. With new collaborations with the best brands in their respective fields, we have rolled out some of the most innovative products and services for our customers, with unique features and benefits."

Loan book (including TLTRO investments) grew by 9% year-on-year to Rs.600,835 crore while retail disbursements in Q3FY21 stood at all-time highs, the lender said. Corporate loans (including TLTRO investments) reported 11% year-on-year increase, the lender said.

Axis Bank’s balance sheet improved 15% YOY and to Rs.9,38,049 crore as on 31st December 2020. The total deposits grew by 11% on period end basis and by 8% YOY on quarterly average balance (QAB) basis. On a QAB basis, savings account deposits jumped 14% YOY, retail savings deposits increased 20% YOY, current Account deposits rose 15% YOY and retail term deposits grew 17% YOY. CASA and Retail Term Deposits on QAB basis put together increased 16%YOY, the lender said.

Last week, the Competition Commission of India approved the acquisition of 19.002% stake in Max Life Insurance Company by Axis Bank and its subsidiaries (Axis Capital and Axis Securities), after revised agreements signed by all entities in October last year.

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Bank of Baroda(BoB) posts net profit on lower provisions

Bank of Baroda(BoB) on Wednesday reported a Rs 1,061-crore profit for the quarter ended December, against a net loss of Rs 1,407 crore a year ago, as provisions fell 45% year-on-year (y-o-y) to Rs 3,957 crore.

Net interest income (NII) – the difference between interest earned and interest expended – stood at Rs 7,749 crore, was up 9% y-o-y. The net interest margin (NIM) rose 11 basis points (bps) sequentially to 3.07%. The operating profit rose 12.8% y-o-y to Rs 5,591 crore.

The gross NPA ratio at the end of December stood at 8.48%, down 66 bps sequentially. Net NPAs were at 2.39%, 12 bps lower than 2.51% at the end of the September quarter.

BoB has made contingent provisions of Rs 1,522 crore as a prudent measure. Total additional provisions as on December 31 stood at Rs 1,891.5 crore. The provision coverage ratio (PCR) improved to 85.46% from 77.77% a year ago.

The management said any worsening in the asset quality is likely to be led by the retail and MSME segments. Sanjiv Chadha, MD and CEO, said over the last two-three months, there has been a sharp recovery and the main beneficiary of this recovery has been the corporate piece. The return of demand, profits and pricing power have accrued mainly to companies and that adds resilience to the corporate book. Also, companies have already been through a phase of stress in recent years. So, the ones that remain standing are more resilient and offer comfort to the bank.

“There will be stress in some parts of the book, but we have fair handle in terms of how much is there and what are the likely implications. But, in terms of the known-unknowns, things which have not fully played out yet that is where the MSME and retail are,” Chadha said, adding, “Particularly, retail is the kind of book which was not being stress-tested. The kind of stress we are seeing now is something which is unprecedented, and therefore, it is likely that there may be some slippages which you cannot anticipate.”

It has become harder to foresee or address retail stress, Chadha said, because a glance at the bank’s restructured book shows that 80% of it has come from corporates and the retail accounts for a very small figure. “Therefore, we have not been able to address whatever stress might be there at least through the restructuring mode – which means that either people will actually start paying up on time [or] there is a fair possibility that some stress will come through NPAs.”

At the same time, BoB is not too worried about major retail slippages because unsecured retail loans constitute less than 1% of its loan book. More than 70% of the retail book is made up of home loans.

Domestic advances grew 8.31% y-o-y to Rs 6.33 lakh crore at the end of December. The current and savings account (CASA) ratio improved 240 bps y-o-y to 41.2% in Q3FY21. Domestic deposits rose 6.74% y-o-y to Rs 8.35 lakh crore. The bank expects to clock a loan growth of 7-8% in FY21 and raise Rs 2,000-4,000 crore through a qualified institutional placement (QIP) in the current quarter.

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Indian Bank Q3 Profit more than doubles

 

State-owned Indian Bank on Friday reported more than doubling of its profit at Rs 514.28 crore for the third quarter ended December 2020. The bank's profit in the year-ago period stood at Rs 247.16 crore.

Total income during the quarter under review was Rs 11,421.34 crore, up from Rs 6,505.62 crore in the same period a year ago, Indian Bank said in a regulatory filing.

However, the bank's gross non-performing assets (NPAs) as a percentage of assets rose to 9.04 per cent during October-December 2020-21 from 7.20 per cent in the year-ago period.

The percentage of net NPA was lower at 2.35 per cent as against 3.50 per cent.

The bank further said it had made provisioning of Rs 2,314.35 crore towards bad loans and contingencies as against Rs 1,529.26 crore in the same quarter a year ago.

During the quarter ended December 31, 2020, the bank raised additional tier-1 capital in three tranches aggregating to Rs 2,000 crore through private placement of Basel III compliant AT 1 Perpetual Bonds.

Non-performing loan provision coverage ratio is 86.51 per cent as on December 2020, it said.

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Yes Bank Q3 results: Net profit rises, NII jumps

YES BANK on Friday reported a 16.5% quarter-on-year increase in net profit to ₹151 crore for the quarter ended on 31 December. The bank saw a net profit of ₹129.37 crore for the quarter ended 30 September. The private lender posted a net loss of ₹18,560 core for the corresponding quarter last year.

The private lender's net interest income, the difference between interest earned and interest, expended 29% quarter-on-quarter to ₹2,560 crore in the quarter under review. It was ₹1,973 crore during the September quarter. Thanks to significant increase in the retail fees, the bank's non-interest income for Q3FY21 saw an increase of 69.4% quarter-on-quarter to 1,197 crore.

Provisions in the quarter under review increased 85.3% quarter-on-quarter to ₹2,199 crore, against ₹1,187 crore in Q2FY21, the bank said in the filing.

"Total step up in provisioning of ₹2,935 crore; consists of additional ₹765 crores towards COVID-19 related provisioning (aggregate at ₹2,683 crore) and balance majorly towards increasing PCR of both NPA and NPI," the lender said in the regulatory filing.

The bank’s gross non-performing assets (NPAs) improved to 15.4% as against 16.9% in September quarter. YES Bank’s net NPAs came in at 4%, compared with 4.7% in the September quarter.

The private lender's operating profit declined 13.1% year-on-year to ₹1,472 crore. Net advances at ₹1,69,721 crore grew 1.7% quarter-on-quarter, with strong pickup in retail and SME disbursement at ₹11,917 crores, the bank said.

Bank's total balance sheet size grew 18.6% quarter-on-quarter to ₹260,062 crore in the December quarter. Total deposits reported a increase of 7.7% (QoQ) to ₹146,233 crore crore. Its CASA ratio also improved at around 26% compared to 24.8% at Spetember, 2020.

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Bank of Maharashtra (BoM) Q3 net profit up 14%

Bank of Maharashtra (BoM) on Tuesday reported 13.91% year-on-year growth in net profit for the quarter ended December 2020 to Rs 154 crore. The rise in net profit was driven by 10.12% y-o-y growth in net interest income to Rs 1,306 crore coupled with net interest margin (NIM) improving to 3.06%. BoM MD & CEO AS Rajeev said it was for the first time in four years that the bank had crossed the NIM of 3%.

The bank’s gross NPAs as on December 31, 2020, were 7.69% against 16.77% on December 31, 2019, while net NPAs reduced to 2.59% in the quarter under review against 5.46% in the same period last year. The bank has made a cumulative Covid-19 provision of Rs 955 crore. According to the Supreme Court order, the bank has not classified these accounts as NPAs but had made additional provision of Rs 150 crore, of which Rs 30 crore was in the third quarter.

Its cost to income ratio had gone down slightly and this was mainly because of a one-time expenditure of Rs 230 crore on wage arrears payable to retired employees and retirement benefits contribution, which was completely absorbed in the December quarter, the MD said.

Rajeev said the bank’s CASA deposits improved by 300 basis points to 50.91%, while provision coverage ratio improved to 90%. There was 22% growth in the retail, agriculture and MSME advances during the quarter. BoM’s retail advances grew 28.89% to Rs 27,540 crore while MSME advances were up 26.31% to Rs 20,304 crore during the quarter under review. According to the MD, this was not just pent up demand or festival sales. The bank expects growth in retail loans to continue in the fourth quarter of FY21 and even improve further. Banks have benefitted from the withdrawal of NBFC from the market, Rajeev said. This has helped in retail growth, so compared to 16%-18% growth last fiscal year, they had seen 26% to 28% growth in the retail loans this year, he added. He expects the NBFCs to bounce bank once the Covid situation is over, but this window of opportunity is available to the banks for another five to six months, he said.

In addition to growth in retail demand, investment in infrastructure and new projects had started pouring in, adding to the optimism, he said. With the government’s PLI scheme, the BoM MD expects a 2-3% increase in the share of corporate loans. Corporate loans now account for 40% of the bank’s advances.

The BoM board has already approved capital raising plans with Rs 2,000 crore to be raised through bonds and Rs 1,000 crore through equity, Rajeev said. During Q4FY21, the bank would look at raising either Tier -I or Tier-II capital of Rs 500 crore through bonds to be utilised next year, he said. They will look at raising equity next year, depending on the situation.

The bank’s total business increased 13.15 % to Rs 2,66,875 crore with total deposits increasing 14.08% to Rs 1,61,971 crore and gross advances were up 11.74 % to Rs 1,04,904 crore. The bank’s net revenues in Q2FY21 grew 15% on y-o-y basis to Rs 1,572 crore.

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CSB Bank reports 89% y-o-y rise in Q3 net profit

CSB Bank on Tuesday reported an 89% year-on-year (y-o-y) increase in its third quarter net profits to Rs 53.05 crore on higher interest and treasury income.

The Thrissur-based lender had reported a net profit of Rs 28.1 crore in Q3 FY20 and Rs 68.9 crore in the second quarter of the current fiscal year. Non-interest income of the lender is seen higher by 130% year on year at Rs 116 crore for the third quarter of FY21 against Rs 50.6 crore in the year-ago period. Total income during the period rose to Rs 599.24 crore from Rs 439.29 crore.

Total deposits grew 16% YoY and CASA ratio stood at 30.4% as on December 31, 2020, against 28.6% as on December 31, 2019. Advances (net) grew at 22% YoY, mainly contributed by gold loan growth of 61%. Managing director & CEO C VR Rajendran said recent revival of the economic activity was having a positive impact on the banking industry as a whole.

“In the context of the withdrawal of the moratorium benefits by the regulator, we decided to be prudent by holding provisions in excess of the regulatory provisions on the stressed assets. Apart from the core NII growth, improved trading income /provision reversals at treasury backed by the favourable yield movements, net income by way of PSLC sale etc supported us on the income side,” the CBS Bank CEO added.

Asset quality improved with gross non-performing assets (NPAs) as a percentage of gross advances at 1.77 % from 3.04 % in the preceding quarter. While net NPA declined to 0.68 % in the December quarter from 1.30 % in the September quarter and 1.98 % in the year-ago quarter.

However, had the bank classified borrower accounts as NPA after August 31, 2020, its proforma Gross NPA ratio and proforma Net NPA ratio would have been 3.42% and 1.93%, respectively, the bank sources said.

Its Provision Coverage has improved to 91.0% as on December 31, 2020, from 84.2% as on September 30 and 80.0% as on March 31, 2020. CSB said that it was holding additionally provision of Rs 154 crore for the stressed assets.

The board has also approved the roll-out of a voluntary retirement scheme (VRS) for its staff members. Rajendran said 223 staff members were eligible for the VRS and the total outgo would be Rs 80 crore if all of them opt for the VRS.

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Federal Bank Q3 results: Profit declines 8%

Federal Bank on Wednesday posted an 8.2 per cent decline in net profit to Rs 404.10 crore for the third quarter ended December 2020, mainly due to higher provisioning for bad loans.

The private sector lender had registered a profit of Rs 440.64 crore in the year-ago period.

Total income, however, improved to Rs 3,941.36 crore during the third quarter as against Rs 3,738.22 crore a year ago, Federal Bank said in a regulatory filing.

Gross non-performing assets (NPAs) declined to 2.71 per cent of the total advances during the quarter, compared to 2.99 per cent at the end of the third quarter of 2019-20.

Net NPAs of the bank also fell to 0.60 per cent of the total assets in October-December 2020 as against 1.63 per cent a year ago.

Despite the decline in bad loans, provisions other than tax and contingencies increased more than two-fold to Rs 420.62 crore as against Rs 160.86 crore during the same period last fiscal.

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HDFC Bank Q3 Results: Net Profit Jumps 18%

HDFC Bank, the country's largest private lender, reported a net profit of Rs. 8758.3 crore on Saturday, January 16, marking an 18.1 rise in the October-December quarter. The bank's total income increased to Rs. 37,522 crore on a standalone basis as compared to Rs. 36,039 crore in the year-ago period. The growth in the third quarter was mostly led by non-interest income as well as pre-provision operating profit with improved asset quality performance.

The asset quality of the bank improved during the October-December quarter as the gross non-performing assets (NPA) ratio stood at 0.81 per cent of the total assets as against 1.42 per cent in the year-ago period and 1.08 per cent at the end of the preceding September quarter, according to HDFC bank.

HDFC Bank's net revenues or net interest income plus other income grew to Rs. 23,760.8 crore in the third quarter of the current financial year from Rs. 20,842.2 crore in the year-ago period.

HDFC Bank's net interest income - the difference between interest earned and interest expended - grew by 15.1 percent to Rs. 16,317.6 crore in the third quarter, driven by advances growth of 15.6 percent, and a core net interest margin for the quarter of 4.2 percent, as compared to Rs.14,172.9 crore in the year-ago period.

The operating expenses for the third quarter were Rs. 8,574.8 crore, an increase of 8.6 per cent over Rs. 7,896.8 crore during the corresponding quarter of 2019. The cost-to-income ratio for the quarter was at 36.1 per cent as against 37.9 per cent for the corresponding quarter of 2019.

The restructuring under the Reserve Bank of India resolution framework for COVID-19 was approximately 0.5 per cent of advances.

The total credit cost ratio was at 1.25 per cent, declining from 1.41 per cent in the previous quarter, and from 1.29 per cent in the corresponding quarter from the year-ago period, said the bank.

The non-interest income or other income was at Rs. 7,443.2 crore - 31.3 per cent of the net revenues, for the third quarter of the financial year, as against Rs. 6,669.3 crore in the corresponding quarter of 2019, driven by fees and commissions and sale or revaluation of investments.

The bank said that it continues to hold provisions as of December 31, 2020, against the potential impact of COVID-19 in the excess of the RBI prescribed norms.

In the second quarter of the current financial year, HDFC Bank reported a net profit of Rs. 7,513.11 crore, marking an increase of 18.41 per cent as compared to the corresponding period a year ago.

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Karnataka Bank Q3 results: Net profit grows 10%

Karnataka Bank has posted a net profit of Rs 135 crore for the December quarter of current financial year with a growth rate of 10% as against Rs 123 crore during the corresponding quarter of last year.

The bank posted a net profit of Rs 451 crore for the nine-month period ended December 2020, posting a growth of 11.5% over the same period of last year, the bank said in a press release, and added its net NPA has dropped to 1.74%.

Bank chief executive Mahabaleshwara MS said the strong numbers reflected the resilience of the bank in spite of Covid-19 pandemic. “Our efforts to realign the asset portfolio towards retail and mid corporate advances are paying desired results. All our cost efficiency measures have yielded positive results as the overall cost declined by 2.35%. The digital loan sanction is showing positive traction and gaining popularity.”

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YES Bank Q3 results: Bank reports record loss in Dec quarter

Private sector lender Yes Bank Ltd. reported its largest ever quarterly loss in October-December quarter as it saw a surge in bad loans. The increased provisions needed to cover for the loans depleted the bank's capital.

For the quarter ended December 2019, Yes Bank reported a loss of Rs 18,564 crore compared to a profit of Rs 1001 crore in the same quarter last year. In the preceding quarter, Yes Bank had reported a net loss of Rs 600 crore.

The bank’s net loss would have been wider at Rs 24,778 crore in the third quarter, if it weren’t for a tax write back of Rs 6,214 crore.

The bank reported a surge in bad loans which led to a jump in provisions that need to set aside against the soured debt.

Gross non-performing assets rose to Rs 40,709.20 crore, or 18.87 percent of the bank’s total loan book. At the end of the September quarter, bad loans stood at 7.39 percent of the loan book. The bank’s net NPA rose to Rs 11,114 crore, or 5.97 percent of net advances, from Rs 9,757.20 crore in the September quarter.

Yes Bank set aside Rs 24,765.73 crore in provisions during Q3, which led to a depletion of its capital.

The capital base--specifically the Core Equity Tier-1 ratio--fell to 0.6 percent at the end of the quarter compared to 8.7 percent in the September quarter. The minimum regulatory requirement stands at 7.375 percent. Overall capital adequacy ratio dropped to 4.2 percent from 16.3 percent in the preceding quarter.

It’s statutory liquidity ratio has breached the RBI’s minimum requirement and so has its liquidity coverage ratio. The bank has thus provided Rs 86 crore as penalty to the central bank.

Deposit Outflows

As on Dec. 31, 2019, the bank’s outstanding deposit base stood reduced to 1.65 lakh crore from Rs 2.09 lakh crore on Sep. 30, 2019. The lender continues to see an outflow of deposits since Dec. 31; its total deposits stood at Rs 1.37 lakh crore, as on Mar. 5.

The outflow of deposits was most marked in the savings account segment, where typically low value deposits are kept with the bank. As on December 31, savings account deposits dropped to Rs 29,764 crore from Rs 44,579 crore a year ago. Similarly, term deposits fell to Rs 1.12 lakh crore at the end of the third quarter, from Rs 1.48 lakh crore last year.

Advances came down to Rs 1.86 lakh crore vs Rs 2.24 lakh crore in September. Domestic corporate advances fell to Rs 90,695 crore as on December 31, from Rs 1.46 lakh crore a year ago. Retail advances increased to Rs 41,289 crore from Rs 37,117 crore in the same period

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United Bank of India posts profit in Q3; asset quality improves YoY

State-owned United Bank of India has reported Rs 114 crore net profit for the December quarter, compared with Rs 1139 crore net loss in the year ago period. It operating profit grew 67% at Rs 637 crore as against Rs 383 crore for the same period.

The bank's asset quality improved when compared to annually but they remained largely at the same level sequentially.

Its gross non performing assets ratio was at 15.48% at the end of the third quarter to December, compared with 15.51% at the end of September while it was 21.27% a year ago.

Net NPA ratio slipped to 8.56% from 7.88% three months back. It was however an improvement when compared to a year ago's 12.08%.

UBI, which is set to be merged with Punjab National Bank and Oriental Bank of Commerce, has reported net interest margin at 2.98% for the third quarter, an improvement of 98 basis points over the year ago period. Net interest income increased to Rs 819 crore against Rs 380 crore in the same period.

Its total business stood at Rs 2.09 lakh crore with advances growing 6.8% to Rs 73991 crore

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Quarterly Financial Results of Public & Private sector banks for Q3FY20

Public Sector Banks :

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

State Bank of India

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Private Sector Banks :

Axis Bank

Bandhan Bank

City Union Bank

DCB Bank

Dhanlaxmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IDFC First Bank

IndusInd Bank

Jammu & Kashmir Bank

Karnataka Bank

Kotak Mahindra Bank

Karur Vysya Bank

Lakshmi Vilas Bank

RBL Bank

South Indian Bank

Yes Bank

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