IDFC First Bank posts big loss in Q3FY19

Private sector lender IDFC First Bank Tuesday reported a net loss of Rs 1,538 crore during the December 2018 quarter, due to one-time exceptional charge to its profit and loss account (P&L) for amalgamating Capital First with itself. 

The bank had registered a net profit of Rs 146.11 crore in the corresponding quarter of previous fiscal. 

Sequentially, there was a net loss of Rs 369.69 crore in the second quarter ended September of the current fiscal. 

Total income of IDFC First Bank, previously IDFC Bank, rose to Rs 3,968.40 crore in December quarter of 2018-19, compared with Rs 2,514.51 crore in the corresponding period of 2017-18, it said in a regulatory filing.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Under Section 15 of the Banking Regulation Act 1949, banks are restricted from declaring dividend in the event a bank carries intangible assets such as goodwill on its balance sheet, IDFC First Bank said. 

"Therefore, as a prudent measure, intangible assets acquired or arising on amalgamation have been fully amortised through profit and loss account in the quarter and nine months ended December 31, 2018. 

"This accelerated amortisation charge to profit and loss account for the quarter and nine months ended December 31, 2018 of Rs 2,599.35 crore is exceptional in nature and resulted in loss for the quarter ended December 31, 2018," the bank said. 

On the asset front, there was a reduction in bad assets with gross non-performing assets (NPAs) coming down to 1.97 per cent of the gross advances as at the end of December 2018, from 5.62 per cent as against a year ago. In value terms, gross NPAs were Rs 1,670.85 crore, down from Rs 2,776.67 crore. 

Net NPAs were 0.95 per cent (Rs 796.02 crore), against 2.52 per cent (Rs 1,206.28 crore). 

The bank said merger of Capital First and its wholly owned subsidiaries, Capital First Home Finance and Capital First Securities, with IDFC Bank has been approved by the Reserve Bank of India, the Competition Commission of India, the Securities and Exchange Board of India, stock exchanges, the respective shareholders and creditors of each entities. 

The name of IDFC Bank changed to IDFC First Bank with effect from January 12. 

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Lakshmi Vilas Bank(LVB) net loss widens in Q3FY19

Private sector lender Lakshmi Vilas Bank (LVB) on Monday reported widening of its net loss to Rs 373.49 crore for third quarter ended December 2018, as bad loans more than doubled year-on-year. It had posted a net loss of Rs 39.23 crore during the corresponding period of the previous fiscal. Sequentially, there was a net loss of Rs 132.31 crore in the second quarter ended September 2018.

Total income also fell to Rs 762.48 crore in October-December 2018 as compared with Rs 817.51 crore, the bank said in a regulatory filing.

The bank's gross bad loans more than doubled to 13.95 per cent of gross loans during the quarter, against 5.66 per cent by in the year-ago quarter.

In value terms, gross bad loans or non-performing assets (NPAs) ballooned to Rs 3,364.28 crore as against Rs 1,427 crore a year ago.

Net NPAs rose to 7.64 per cent (Rs 1,716.22 crore) from 4.27 per cent (Rs 1,060.46 crore).

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Thus, the provisioning for bad loans and contingencies were raised to Rs 431.39 crore for the quarter, against Rs 85.35 crore in the corresponding period of 2017-18.

Total business stood at Rs 54,910 crore as against Rs 55,851 crore a year ago.

The return on assets plunged to (-) 3.90 per cent in the December quarter, against (-) 0.42 per cent for the year-ago period.

"Over the quarter, the bank has reduced exposure to NBFCs, real estate and infrastructure sectors by Rs 800 crore. Exposure to the NBFC sector is today at Rs 2,136 crore, which is 8.16 per cent of the lending book. There is no NPA in this sector with us," it said in a release.

The bank's exposure to the real estate sector is Rs 3,742 crore, which is 14.3 per cent of the lending book of the bank.

"Out of this exposure, Rs 1,832 crore is to developers. Stress is of Rs 245 crore. The exposure to LAPs (loan against property) is Rs 959 crore. We have not noticed any particular stress in that book," the bank said.

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Punjab National Bank(PNB) Q3 profit rises 7%; asset quality improves

Punjab National Bank(PNB) reported a surprise net profit of Rs 246.5 crore for the December quarter. This implies a jump of 7 percent from Rs 230 crore that the bank posted during the same quarter of last year.

The net interest income (NII) rose around 8 percent at Rs 4,290 crore against Rs 3,989 crore that the lender reported last year.

On the asset quality front, gross non-performing assets (NPAs) stood at Rs 77,733 crore against Rs 81,251 crore that was reported during the previous quarter. Net NPAs have fallen to Rs 35,675 crore from Rs 38,279 crore last year.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Gross NPA ratio fell to 16.33 percent for the quarter under review against 17.16 percent last quarter. The net NPA ratio fell to 8.22 percent from 8.9 percent in the previous quarter.

Provisions stood at Rs 2,754 crore against Rs 9,758 crore in the last quarter. Last year, it had reported provisions of Rs 4,467 crore.

The bank further informed that it has written back a provision of Rs 163 crore for its IBC accounts. It has made a provision of Rs 2,014 crore in relation to a fraud.

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IDBI Bank reports threefold increase of loss in Q3

IDBI Bank Monday posted widening of loss by nearly threefold to Rs 4,185.48 crore for the third quarter ended December 2018 as bad loans surged.

The bank had reported a net loss of Rs 1,524.31 crore in the corresponding quarter of the previous fiscal.

Total income decreased to Rs 6,190.94 crore for the quarter, compared with Rs 7,125.20 crore in the corresponding quarter a year ago, IDBI Bank said in a statement.

The bank's gross non-performing assets (NPAs) shot up to 29.67 per cent of gross advances during the quarter, against 24.72 per cent in the year-ago period.

However, net NPAs declined to 14.01 per cent of the total advances, from 16.02 per cent in the December 2017 quarter.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

As a Result,result, the bank's provision for bad loan increased to Rs 5,074.80 crore, compared with Rs 3,649.82 crore a year ago.

However, slippages were Rs 2,211 crore which were lowest in the past seven quarters, Recovery from NPAs improved to Rs 3,440 crore during the quarter, compared with Rs 537 crore in the same period a year ago.

The ownership of the bank has changed from the Government of India to LIC.

The statement further said Life Insurance Corporation of India (LIC) completed acquisition of 51 per cent controlling stake in IDBI Bank on January 21 and the bank received total capital of Rs 21,624 crore from the insurer.

On the backdrop of capital infusion from LIC, it said that the bank has achieved regulatory capital requirement as on December 31, 2018, and its common equity tier-1 (CET-1) capital improved to 9.32 per cent as on December 31, 2018, against 6.62 per cent a year ago.

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Central Bank of India narrows loss in Q3FY19

Central Bank of India on Friday reported a loss of Rs.718.23 crore for the third quarter ended December 2018 against that of Rs.1,664.22 crore in the October-December quarter of previous fiscal.

Its total income decreased to Rs.6,329.17 crore during the quarter under review, as against Rs.6,589.32 crore in the year-ago period, the bank said in a regulatory filing.
Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Asset quality of the bank further deteriorated as gross non-performing assets (NPAs) grew to 20.64 per cent of gross advances during the December quarter, as against 18.08 per cent in the year-ago period. Net NPAs also increased at 10.32 of advances from 9.45 per cent a year ago.

However, the provisioning for bad loans and contingencies on net basis was at Rs.1,818.85 crore during the quarter, down from Rs.3,427.03 crore a year ago.

The provision for bad loans also declined to Rs.2,039.19 crore against Rs.3,081.56 crore in the same period a year ago.

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Syndicate bank posts profit in Q3FY19

Reversing its loss-making spree during the past four quarters, Syndicate Bank on Saturday announced a net profit of Rs 108 crore during the October-December quarter of financial year 2018-19. The bank’s CASA (current and savings account) percentage for domestic deposits increased to 34.96 per cent during the December quarter of FY19 from 33.49 per cent during the September quarter. 

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

The global business of the bank stood at Rs 4,67,911 crore. The gross NPA ratio improved to 12.54 per cent in the third quarter, compared to 12.98 per cent in the second quarter, while the net NPAs stood at 6.75 per cent in Q3FY19, against 6.83 per cent in Q2FY19. 

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SBI posts Q3 profit on lower provisions, asset quality improves as slippages fall

State Bank of India has reported profit at Rs 3,955 crore for October-December quarter, driven by sharp fall in provisions and NII growth.

The country's largest lender had posted a loss of Rs 2,416.4 crore in same quarter last year. Sequentially the profit increased by a whopping 318.5 percent or 4-fold.

Net interest income during the quarter grew by 21.4 percent year-on-year to Rs 22,691 crore with loan growth of 12.1 percent YoY and 4.6 percent QoQ. NII growth was driven by lower slippages and lower funding cost.

Domestic net interest margin expanded to 2.97 percent at the end of December quarter against 2.92 percent as of September driven by higher credit growth, better spreads and lower slippages, SBI said.

Numbers were ahead of a CNBC-TV18 poll estimates of Rs 3,318 crore for profit and Rs 21,902 crore for NII. The bank improved its asset quality performance. Gross non-performing assets (NPA) as a percentage of gross advances were lower at 8.71 percent for the quarter against 9.95 percent in previous quarter.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Net NPA as a percentage of net advances, too, were lower at 3.95 percent for the quarter against 4.84 percent in September quarter. In absolute term, gross NPAs dipped to Rs 1,87,764.6 crore, down 8.8 percent and net NPAs fell 14.6 percent to Rs 80,943.5 crore compared to year-ago due to decline in slippages.

SBI said fresh and gross slippages for the quarter stood at Rs 4,523 crore and Rs 6,541 crore, declined sharply against Rs 10,725 crore and Rs 10,888 crore reported in September quarter while recoveries & upgrades were higher at Rs 6,617 crore against Rs 4,327 crore in earlier quarter.

The largest lender further said that large infra group exposure is still tagged as 'Standard' as of December 31, 2018. Provisions and contingencies fell sharply at Rs 6,006 crore in quarter ended December 2018 against Rs 12,092 crore in September quarter and Rs 18,876 crore in same period last year.

However, provisions for non-performing assets were sharply higher at Rs 13,971 crore for the quarter against Rs 10,184.5 crore in Q2FY19, but declined against Rs 17,759.7 crore reported in corresponding period last fiscal.

The bank also reported increase in its provision coverage ratio at 74.63 percent, from 70.7 percent in previous quarter.

SBI purchased loan portfolio from NBFCs worth Rs 13,000 crore till December 2018 and is expected to buy more portfolio worth Rs 7,000 crore going ahead.

Other income (non-interest income) fell 0.6 percent year-on-year to Rs 8,035 crore mainly on account of decline in trading income by 58.56 percent YoY. Operating profit increased 7.4 percent to Rs 12,625 crore in Q3 driven by healthy growth in net interest income and lower growth in overhead expenses YoY.

Consolidated profit of the bank, which include income from its subsidiaries, was at Rs 4,709.15 crore for the December quarter against loss of Rs 1,886.6 crore in year-ago period, but sequentially the same showed a 8-fold increase.

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Dena Bank narrows its loss in Q3FY19

State-owned Dena Bank on Thursday reported narrowing of net loss in December quarter to Rs 178.47 crore as provisioning for bad loans declined. The bank had posted a net loss of Rs 380 crore in the October-December period of 2017-18.

Total income of the bank also came down to Rs 2,293 crore in the quarter under review as against Rs 2,476 crore in the year-ago period, Dena Bank said in a regulatory filing.

The lender also improved its asset quality with net non-performing assets (NPAs) falling to 10.44 per cent of total advances at December-end 2018 from 11.52 per cent in year-ago same period.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Gross NPAs however rose to 19.77 per cent of gross advances as against 19.56 per cent a year ago.

In absolute terms, net NPAs stood at Rs 6,142.47 crore by the end of third quarter 2018-19 as against Rs 7,564.20 crore a year ago.Gross NPAs stood at Rs 12,998.46 crore, down from Rs 14,168.78 crore a year ago.

The lender's provisioning for bad loans nearly halved to Rs 519.37 crore in the latest quarter from Rs 1,044.28 crore in October-December 2017. Provision coverage ratio stood at 66.60 per cent at December-end 2018.

The lender also informed that "the board of directors of Bank of Baroda, Vijaya Bank and Dena Bank at their respective meetings held on January 2, 2019, have approved the amalgamation of the three banks."

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