HDFC Bank Q3 Profit jumps 34%

 

HDFC Bank Ltd on Tuesday reported a 33.54 per cent year-on-year (YoY) rise in standalone net profit at Rs 16,372.54 crore for the December quarter compared with Rs 12,259.49 crore in the same quarter last year. The profit figure was largely in line with Street estimates. Net interest income (NII) for the quarter, which is interest earned less interest expended, rose 23.9 per cent YoY to Rs 28,470 crore compared with Rs 22,990 crore in the same quarter last year. The NII growth was slightly lower than analyst estimates of 25 per cent. 

Pre-provision operating profit jumped 24.3 per cent to about Rs 23,650 crore. Provisions for the quarter jumped to about Rs 4,220 crore from Rs 2,810 crore in the year-ago quarter. The private lender said its core net interest margin (NIM) stood at 3.4 per cent on total assets, and 3.6 per cent based on interest earning assets.

Gross non-performing assets were at 1.26 per cent of gross advances as on December 31, 2023, against 1.34 per cent as on September 30, 2023, and 1.23 per cent as on December 31, 2022. Net non-performing assets were at 0.31 per cent of net advances as on December 31.

Non-interest revenue for the quarter ended December 31, 2023 stood at about Rs 11,140 crore compared with Rs 8500 crore in the corresponding quarter ended December 31, 2022. Among the four components of other income, fees & commissions stood at Rs 6,940 crore billion against Rs 6,050 crore YoY.

Foreign exchange & derivatives revenue came in at Rs 1210 crore against Rs 1,070 crore YoY; net trading and mark-to-market gain stood at Rs 1,470 crore against a gain of Rs 260 crore YoY. Miscellaneous income, including recoveries and dividend, stood at Rs 1,520 crore against Rs 1,110 crore.

HDFC Bank said its operating expenses were up 28.1 per cent to Rs 15,960 crore over Rs 12,460 crore in the corresponding quarter last year. The cost-to-income ratio for the quarter was at 40.3 per cent.

The Bank's total Capital Adequacy Ratio (CAR) as per Basel II guidelines stood at 18.4 per cent against 19.4 per cent YoY. This is against a regulatory requirement of 11.7 per cent.

As of December 31, 2023, HDFC Bank's distribution network was at 8,091 branches and 20,688 ATMs across 3,872 cities / towns as against 7,183 branches and 19,007 ATMS across 3,552 cities / towns as of December 31, 2022. A total of 52 per cent of its branches were in semi-urban and rural areas.

"In addition, we have 15,053 business correspondents, which are primarily manned by Common Service Centres (CSC). The number of employees were at 2,08,066 as of December 31, 2023 (as against 1. ,66, 890 as of December 31, 2022)," the bank said in a BSE filing.

Domestic retail loans grew 111.1 per cent, commercial and rural banking loans grew 31.4 per cent and corporate, and other wholesale loans (excluding non-individual loans of eHDFC Ltd of approximately Rs 98,900 crore) grew 11.2 per cent. Overseas advances constituted 1.7 per cent of total advances.

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Bank of Baroda(BoB) Net profit more than doubles in Q3

  

State-owned Bank of Baroda reported over two-fold jump in its net profit at Rs 2,197 crore in the quarter ended December 2021 on higher net interest income (NII) and lower provisions. The bank's net profit was at Rs 1,061 crore in the year-ago period.

The bank's operating profit also rose, albeit by a modest 8 per cent, to Rs 5,483 crore against Rs 5,084 crore. A 64 per cent fall in treasury income at Rs 499 crore dented the rise in operating profit.

Net interest margin – a key profitability measure – was at 3.13 per cent for the December quarter against 2.77 per cent over the same period last year. Net interest income (NII) -- the difference between interest earned and interest expended -- rose 14.4 per cent to Rs 8,552 crore.

Other income, which includes fee and treasury earnings, was 13.5 per cent lower at Rs 2,519 crore.

Provisions and contingencies fell 27 per cent year-on-year to Rs 2,507 crore against Rs 3450 crore.

The lender's asset quality improved with gross non-performing assets (NPAs) falling to 7.25 per cent at the end of December against 8.48 percent a year prior to that. Net NPA was at 2.25 per cent against 2.39 per cent.

The bank saw fresh slippages of Rs 2,830 crore in the December quarter while it recovered Rs 2,032 crore and upgraded Rs 1,272 crore from NPA accounts. It wrote off loans amounting to Rs 3,694 crore.

Its gross advances rose 3.56 per cent year-on-year to Rs 7.72 lakh crore

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Indian Bank Net profit rise 34% in Q3

 

Indian Bank reported a 34 per cent year-on-year (YoY) rise in net profit at Rs 690 crore for the December quarter, despite a 21 per cent growth in provisions and contingencies. Net profit was Rs 514 crore in the year-ago period.

The bank saw a 30 per cent rise in earnings from treasury operations, unlike most of its peers, helping its profit numbers.

Its net interest margin from domestic operation was at 3.03 per cent for the December quarter against 2.89 per cent for the preceding quarter. The NIM was 3.13 per cent in the year-ago period.

The bank's operating profit rose 16 per cent to Rs 3,288 crore for the quarter against Rs 2,846 crore in the year-ago period. Net interest income was at Rs 4,395 crore compared with Rs 4,314 crore over the same period. The bank set aside Rs 2,493 crore for provisions and contingencies in the quarter under review against Rs 2,061 crore it did earlier.

Its gross non-performing assets ratio stood at 9.13 per cent at the end of December as against 9.56 per cent three months prior to that. Net NPA was at 2.72 per cent against 3.26 per cent.

It saw fresh slippages of Rs 2,732 crore while cash recovery from bad loans was Rs 1,096 crore. The company plans to transfer five NPA accounts totalling Rs 1300 crore into the bad bank initially, managing director Shanti Lal Jain said.

He is expecting the bank to achieve an 8 per cent rise in advances for FY21 even as its advances growth so far remained muted at 3 per cent YoY at Rs 4 lakh crore.

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Union Bank of India net profit jumps 49% in Q3

 

State-owned Union Bank of India on Monday posted a 49 per cent jump in net profit to Rs 1,085 crore in the third quarter ended December 31. The bank had earned a net profit of Rs 727 crore in the corresponding quarter of the previous financial year.

Its total income during the October-December quarter of 2021-22 declined to Rs 19,453.74 crore from Rs 20,102.84 crore in the corresponding quarter of the previous financial year, Union Bank of India said in a regulatory filing.

On the asset quality front, the bank's gross non-performing assets (NPAs) fell to 11.62 per cent of the gross advances by the end of the December 2022 quarter, compared with 13.49 per cent by the end of December 2020.

However, net NPAs increased to 4.09 per cent, up from 3.27 per cent at the end of December 2020.

Provisions and contingencies declined significantly to Rs 2,549.58 crore, compared with Rs 5,210.50 crore a year ago.

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State Bank of India (SBI) Q3 Results: Profit surges 62% YoY , beats estimate

  

State Bank of India (SBI) on Saturday reported a 62.26 per cent year-on-year (YoY) rise in standalone net profit at Rs 8,431.88 crore compared with Rs 5,196.22 crore in the corresponding quarter last year.

The figure came in higher than Rs 8,200 crore profit estimated by analysts in an ET NOW poll.

Interest earned for the quarter rose 4.41 per cent to Rs 69,678.12 crore from Rs 66,734.50 crore in the same quarter last year.

Net interest income (NII) rose 6.48 per cent YoY to Rs 30,687 crore from Rs 28,820 crore. Net interest margin (NIM) improved 6 basis points to 3.4 per cent in the December quarter from 3.34 per cent corresponding quarter last year.

Slippages for the quarter stood at Rs 2,334 crore. Overall restructuring under Covid resolution plan-1 and 2 stood at Rs 32,895 crores, which was 1.2 per cent of total advances.

The bank said strong growth was seen in the personal retail segment, driven by home loans, Xpress credit and other loans. Corporate & SME credit also picked up during the quarter, it said.

Deposits for the quarter rose 8.83 per cent YoY to Rs 38,47,794 crore while gross advances were up 8.47 per cent at Rs 26,64,602 crore in the quarter under review. Out of this, retail personal advances were up 14.57 per cent YoY at 9,52,189 crore.

Gross NPA for the quarter stood at 4.5 per cent, which was lower than 4.9 per cent in the September quarter and 4.77 per cent in the year-ago quarter.

Non-interest income for the quarter fell 6.19 per cent YoY to Rs 8,673 crore from Rs 9,246 crore.

Forex income was down 21 per cent YoY at Rs 484 crore, miscellaneous income was down YoY 17 per cent at Rs 1,929 crore and profit and loss on sale of investments was also down 46.45 per cent YoY at Rs 514 crore. Fee income, on the other hand, grew 7.45 per cent to Rs 5,747 crore.

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Central Bank of India Q3 Profit rises 69%

 

Central Bank of India on Friday reported 69 per cent jump in net profit at Rs 279 crore for the quarter ended December 2021 on the back of healthy growth in core income and fall in bad loan proportion. The bank had posted a net profit of Rs 165 crore in the same quarter a year ago.

Gross non-performing assets (NPAs) reduced to 15.16 per cent at end-December 2021, improving by 114 basis points from 16.30 per cent by the year-ago same period, it said.

Net NPAs reduced to 4.4 per cent from 4.73 per cent. However, the bank's provisions for bad loans and contingencies for the quarter rose to Rs 878.93 crore as against Rs 743.74 crore in October-December 2020-21.

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Canara Bank Q3 Net profit jumps over two-fold

 A fall in total provisions and recovery from bad loans helped state-owned Canara Bank more than double its net profit to Rs 1502 crore for the December quarter even as provision toward fresh bad debt rose marginally.

The bank reported a net profit at Rs 696 crore in the year ago period.

Net interest margin, a key profitability parameter, rose to 2.83 per cent for the December quarter from 2.72 per cent in the year ago period. The bank's net interest income rose 14 per cent year-on-year at Rs 6,946 crore.

Managing director LV Prabhakar sounded confident on bettering asset quality going forward as stressed loans account for merely 1.76 per cent of total portfolio. Stressed loans had accounted for 3.63 per cent of the total portfolio in the year-ago period.

Its asset quality deteriorated when compared to the December 2020 quarter but improved sequentially. Gross non-performing assets (GNPA) ratio was at 7.8 per cent, as compared with 7.46 per cent a year back. Gross NPA was 8.42 per cent at the end of September. Net NPA ratio was at 2.86 per cent against 2.64 per cent at the end of December 2020 and 3.21 per cent as on September 20, 2021.

The bank recovered Rs 2,784 crore in the December quarter from bad loans as well as written off accounts, as compared with Rs 2,893 crore in the year back period.

The bank's operating profit rose 10 per cent at Rs 5,803 crore against Rs 5,267 crore over the same period while total provision dipped 47 per cent at Rs 2,245 crore from Rs 4,210 crore helping the sharp rise in net profit. Provisions to cover bad loans were Rs 2,705 crore against Rs 2658 crore in the corresponding quarter in 2020.

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PNB Q3 results: Profit zooms 123%

 

Government-owned lender Punjab National Bank (PNB) on Thursday said its net profit for December-ending quarter was Rs 1,126.78 crore, up 122.71 per cent compared to reported profit of Rs 506.03 crore in the same quarter last year.

Net profit was higher on account of lower provisions. The company provided Rs 3,353.55 crore for the quarter down from Rs 5,175.99 crore. However, provisions for bad loans increased by Rs 536 crore.

Operating profit (before contingencies and provisions) of the company came in at Rs 5,076.31 crore, down 17.24 per cent from Rs 6,134.20 crore in the year ago quarter.

Operating margin came in at 23.05 per cent, down from 26.62 per cent in the same quarter last year. However, it was significantly higher than September quarter’s 18.91 percent.

Net profit margin for the quarter was 5.12 per cent, down from 5.20 per cent quarter-on-quarter and up from 2.20 per cent year-on-year.

Gross net performing assets (NPA) stood at 4.9 per cent of total assets. This compares with 5.49 per cent and 4.03 per cent, respectively, in the September 2021 quarter and December 2020 quarter. Similarly, net NPA stood at 0.34 per cent during the quarter, against 0.33 per cent and 0.15 per cent, respectively.

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