Latest Bank Update

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

March 14, 2020 Private Banks, Q3 results, Q3FY20, Results, Yes Bank No comments

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

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

February 12, 2020 Public sector banks, Q3 results, Q3FY20, Results, United Bank of India No comments

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

Quarterly Financial Results of Public & Private sector banks for Q3FY20

February 12, 2020 Private Banks, Public sector banks, Q3 results, Q3FY20, Results No comments

Public Sector Banks :

Central Bank of India

Corporation Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Private Sector Banks :

IDBI Bank Q3 results net loss widens

February 11, 2020 IDBI Bank, Private Banks, Q3 results, Q3FY20, Results No comments

IDBI Bank on Tuesday said its loss widened to Rs 5,763.04 crore for the December quarter from Rs 4,185.48 crore in the year-ago period. The bank had repoted Rs 3,458.84 crore loss in the September quarter.

The lender, however, said it would have reported a profit of Rs 418 crore instead of a loss of Rs 5,763 crore, if continued under the old tax regime.

The LIC-owned lender made Rs 6,523 35 crore as provisions for taxes during the quarter, even provisions & contingencies stood mere at Rs 521.95 crore compared with Rs 6,530.75 crore in provisions in the year-ago period.

Gross non-performing assets (NPAs) for the quarter fell to 28.72 per cent from 29.43 per cent in September quarter and 29.67 per cent in the year-ago quarter.

In respect of RBI-referred NCLT accounts, the bank is holding provisions worth Rs 22,644.40 crore as on December 31, 2019.

The bank's Provision Coverage Ratio (PCR), including technical write-offs, stood higher at 92.41 per cent.

Syndicate Bank consolidated net profit rises in Q3

February 11, 2020 Public sector banks, Q3 results, Q3FY20, Results, SYNDICATE BANK No comments

Syndicate Bank on Tuesday said its net profit in December quarter 2019 grew manifold to Rs 434.82 crore as bad loans shrank. The public sector lender had registered a profit of Rs 107.99 crore in the year-ago period.

Total income during the quarter increased to Rs 6,316.57 crore from Rs 6,077.62 crore in the same period of 2018-19, Syndicate Bank said in a regulatory filing.

Gross bad loans or non-performing assets (NPAs) came down to 11.33 per cent of gross advances as on December 31, 2019 from 12.54 per cent at the end of the same month a year ago.

In absolute terms, gross NPAs stood at Rs 25,330.10 crore as compared to Rs 26,184.66 crore in the year-ago period.

Net NPAs were 5.94 per cent (Rs 12,514.32 crore), down from 6.75 per cent (Rs 13,211.17 crore).

However, the bank made a higher provisioning of Rs 1,286.64 crore for bad loans during the quarter as compared to Rs 909.82 crore in the year-ago period.

The overall provisions and contingencies stood at Rs 1,044.98 crore as against Rs 497.14 crore a year ago.

The bank said it restructured 14,574 MSME accounts, as per RBI directive on relief, worth Rs 465.84 crore during January 1 to December 31, 2019.

On disclosure about divergence of bad loans for 2018-19, the bank said the net loss during the year was adjusted to Rs 3,358.56 crore, higher than Rs 2,588.29 crore reported earlier.

The divergence in gross NPAs in 2018-19 came in at Rs 5 crore as the bank reported it to be at Rs 24,680.37 crore, while the RBI assessed it at Rs 24,685.37 crore.

There was a fall of Rs 1,179 crore in net NPA divergence for the year as the bank reported it to be at Rs 12,627.73 crore and the RBI's assessment stood at Rs 11,448.73 crore.

The divergence in provisioning for 2018-19 stood at Rs 1,184 crore.

Out of the reported divergence in provisioning, Rs 724 crore has been provided and the balance Rs 460 crore is under review by the regulator, Syndicate Bank said.

"The board of directors in its meeting held on September 13, 2019 has considered and accorded its 'in-principle approval' for amalgamation of Syndicate Bank into Canara Bank subject to all applicable approvals and the process is in progress," the bank said in the filing.

The provision coverage ratio as on December 31, 2019 stood at 69.28 per cent.

Allahabad Bank Q3 net loss widens over two-fold

February 11, 2020 Allahabad Bank, Public sector banks, Q3 results, Q3FY20, Results No comments

Allahabad Bank on Tuesday reported an over two-fold jump in standalone net loss for the December quarter at ₹1,986.26 crore on higher bad loans and provisioning.

The state-owned lender had reported a net loss of ₹733 crore in the corresponding October-December period of the previous fiscal.

Total income (standalone) during the quarter under review grew to ₹4,860.35 crore from ₹4,756.88 crore in the same period of 2018-19.

The bank's gross non-performing assets (NPAs) rose to 18.93 per cent of the gross advances by the end of the December quarter as against 17.81 per cent a year ago.

However, it was down sequentially from 19.05 per cent at the end of September 2019.

In value terms, the gross NPAs or bad loans rose to ₹32,149.92 crore from ₹28,218.79 crore a year ago.

Net NPAs, however, came down to 5.13 per cent ( ₹7,449.27 crore) from 7.70 per cent ( ₹10.865.26 crore), Allahabad Bank said.

Provisions for bad loans for the quarter increased to ₹3,003 crore from ₹1,900 crore a year ago, it said.

"The bank is carrying additional provision of ₹1,801.26 crore over and above the provisions required to be made in terms of prudential norms issued by RBI, to ensure compliance with the PCA norms of net NPAs," the bank said.

The losses on consolidated basis too widened to ₹1,980.82 crore for the quarter from ₹746.83 crore in the year ago period. Income was higher at ₹5,009.57 crore as against ₹4,896.75 crore.

As a relief to MSME borrowers registered under GST, the Kolkata-headquartered lender said as many as 667 such accounts were restructured for an outstanding amount of ₹348.13 crore.

For the accounts covered under the Insolvency and Bankruptcy Code (IBC), the bank is holding provision of ₹6,292.47 crore (100 per cent of total outstanding as on December 31, 2019).

Punjab & Sind Bank posts net loss in Q3

February 11, 2020 Public sector banks, Punjab & Sind Bank, Q3 results, Q3FY20, Results No comments

Punjab & Sind Bank on Monday reported a net loss of Rs 255.49 crore for the quarter ending December due to a spike in bad loans.

The state-owned lender had made a net profit of Rs 22.34 crore during the same quarter of the previous fiscal year.

Total income during the third quarter of 2019-20 declined to Rs 2,077.01 crore from Rs 2,337.13 crore for the year ago same period, the bank said in a regulatory filing.

Bad loans or non-performing assets (NPAs) of the bank showed deterioration as gross NPAs jumped to 13.58 per cent of gross advances by the end of December 2019 as against 11.19 per cent by the same period of 2018.

In value-terms, gross NPAs were Rs 8,923.49 crore by end-December, higher than Rs 7,990.67 crore at end-December 2018.

Net NPAs too increased to 8.71 per cent (Rs 5,417.79 crore) from 6.90 per cent (Rs 4,696.47 crore).

Provisions for bad loans during the quarter increased to Rs 464.01 crore as against Rs 453.88 crore the bank had parked aside in the year ago quarter.

The bank is carrying a provision of Rs 11.52 crore as against the outstanding balance of Rs 230.40 crore as at December 31, 2019 being 5 per cent of outstanding food credit availed by Punjab as per the RBI letter issued to SBI, the lead bank.

Indian Overseas Bank Q3 net loss widens on higher bad loan provisioning

February 10, 2020 Indian Overseas Bank, Public sector banks, Q3 results, Q3FY20, Results No comments

Indian Overseas Bank (IOB) on Monday reported a standalone loss of Rs 6,075.49 crore for the quarter ended December 31. The public sector lender had posted a loss of Rs 346.02 crore in the same period last year.

The bank kept aside Rs 6,663.94 as provisions for bad loans in the quarter, which hit its bottom line. The number stood at Rs 2,075 crore in the year-ago period.

Operating profit stood at Rs 762.35 crore against Rs 1,466.15 crore for the quarter ended December 31, 2018.

Total income of IOB during the quarter came in at Rs 5,197.95 crore while interest income stood at Rs 2,867.66 crore.

Gross NPA ratio slid to 17.12 per cent against 23.76 per cent last year. Net NPA saw an improvement of 775 basis points, as it eased to 5.81 per cent from 13.56 per cent.

The lender said its provision coverage ratio improved to 86.20 per cent during the quarter against 64.23 per cent in the year-ago period.

Fresh slippages were at Rs 1,647.82 crore while recovery was at Rs 7,085.04 crore.

The bank said it has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and ‘BB’ and below rated accounts. The bonk has also exited from accounts in the stressed sectors, wherever feasible.

Due to this, gross advances came down to Rs 1,38,643 crore in the December quarter from Rs 1,50,590 crore in the same quarter last year.

Corporation Bank Q3 net ptofit jumps on higher interest income

February 10, 2020 Corporation Bank, Public sector banks, Q3 results, Q3FY20, Results No comments

Public sector lender Corporation Bank on Friday said its consolidated net profit increased seven fold to Rs 420.83 crore in third quarter ended December 31, 2019 on higher interest income, albeit provisions for bad loans surged. The bank had posted a net profit of Rs 59.94 crore during the corresponding period a year ago.

Income increased to Rs 6,051.93 crore, from Rs 4,112.29 crore, the lender said in a regulatory filing.

On a standalone basis, the net profit increased to Rs 420.68 crore in third quarter ended December 31, 2019 from Rs 60.53 crore a year ago.

Notwithstanding that the bank's bad loan ratio has come down from the year-ago level, still it continues to remain elevated, the filing said.

In absolute terms, the gross NPAs stood at Rs 19,557.16 crore in the quarter under review, as against Rs 21,921.42 crore a year ago. Net NPAs were valued at Rs 6,321.81 crore, down from Rs 13,521.22 crore.

Despite fall in bad loan provisions, the bank kept aside a higher provision of Rs 1,300.35 crore for the quarter, compared with Rs 842.27 crore reserved for the year-ago quarter, the filing said.

During the quarter ended December 2019, the bank raised Basel III compliant tier II bonds amounting to Rs 1,000 crore, it added.

For the accounts covered under the provisions of Insolvency and Bankruptcy code (IBC), the bank has made a total provision of Rs 7,404.96 crore (100 per cent of gross NPAs) including additional provision of Rs 905 crore in said accounts as on December 31, 2019, the filing said.

For other accounts pending resolution, under the provisions of IBC, the bank is holding total provision of Rs 14,435.24 crore (96.35 per cent of gross NPAs), Corporation Bank said.

As per RBI norms, the bank has restructured and retained advances of Rs 632.05 crore as standard assets as on December 31, 2019 and made provision of Rs 31.60 crore as on December 31, 2019 in respect of such borrowers.

On migrating to the lower tax regime which was introduced by the government for the corporate sector in September, Corporation Bank said it is currently in the process of evaluating this option.

Provision coverage ratio of the bank at end of December 31, 2019 was 84.58 per cent as compared to 66.13 per cent as on December 31, 2018.

Union Bank of India Q3 net profit up

February 10, 2020 Public sector banks, Q3 results, Q3FY20, Results, Union Bank of India No comments

State-owned Union Bank of India on Monday reported a net profit for Q3 FY20 at Rs 575 crore as compared to a loss of Rs 1,194 crore in Q2 FY20.

Net interest income for the Q3 FY20 increased by 25.7 per cent to Rs 3,134 crore as compared to Rs 2,493 crore in Q3 FY19. Domestic net interest margin improved to 2.55 per cent as compared to 2.23 per cent in the year-on period.

The lender said its global business grew by 8.5 per cent year-on-year to Rs 7.81 lakh crore as on December 31, 2019 while total global deposits grew by 10.6 per cent to Rs 4.45 lakh crore.

Global gross advances grew by 5.8 per cent to Rs 3.36 lakh crore driven by retail segment which increased at 10 per cent year-on-year as on December 31, 2019.

The CASA (current account savings account) base increased by 57 basis points quarter-on-quarter to 34.4 per cent at the end of Q3 FY20.

Operating profit for the April to December quarter increased by 12.7 per cent to Rs 6,528 crore as compared to Rs 5,791 crore in April to December 2018.

However, gross non-performing assets (GNPAs) ratio declined to 14.86 per cent as on December 31, 2019 compared to 15.24 per cent as on September 30, 2019.

Cash recoveries during Q3 FY20 increased by 261.4 per cent to Rs 2,255 crore as compared to Rs 624 crore in Q2 FY20.

Net NPA ratio remained stable at 6.99 per cent as on December 31, 2019 compared to 6.98 per cent as on September 30, 2019. Provision coverage ratio stood at 67.42 per cent at the end of Q3.

Tier-one and common equity tier (CET)-1 capital ratio stood at 12.69 per cent and 11.35 per cent respectively.

Uco bank net loss narrows in Q3

February 06, 2020 Public sector banks, Q3 results, Q3FY20, Results, UCO Bank No comments

State-run Uco Bank has reported net loss of Rs 960 crore for the December quarter, marginally less than its net loss in the year ago period but higher than that of in the preceding quarter. The bank's operating profit, which is calculated before provisions and contingencies, however trebled at Rs 1211 crore against Rs 381 crore in the year agop period.

It had reported net loss of Rs 892 crore for the September 2019 quarter and Rs 999 crore for the December 2018 one, according to the bank's regulatory filing to stock exchanges.

The bank's total provisions and contingencies grew 62 per cent at Rs 2171 crore from Rs 1340 crore -- despite a 27 per cent dip in provisions to cover non performing assets (NPA) at Rs 1646 crore -- forcing it to report the straight 17th quarter loss.

Asset quality, Uco's nemesis for decades, has improved from the past year with gross NPA ratio at 19.45 per cent at the end of December compared with 27.39 per cent a year back. Net NPA ratio, which has fallen to 6.34 per cent from 12.48 per cent for the same period, has raised hopes of it coming down below the critical 6 per cent level which would help it to get out of the Prompt Corrective Action net. It was put under PCA in 2017.

The bank's profit from treasury more than halved in the December quarter at Rs 335 crore from Rs 806 crore a year back which restricted the fall in net loss.

Andhra bank posts profit in Q3

February 06, 2020 Andhra Bank, Public sector banks, Q3 results, Q3FY20, Results No comments

Andhra Bank has posted a standalone net profit of ₹162.80 crore for the quarter ended December 2019.

In the corresponding period of previous fiscal, it had reported a loss of ₹578.59 crore. The net profit during the quarter came on the back of a 5% increase in the total income to ₹5,595.19 crore (₹5,322.33 crore).

The gross non-performing assets (NPAs) during the quarter was 17.26% as against 16.68% in the year earlier period. The Net NPA were lower at 6.36% in comparison to the year earlier period’s 6.99%. The interest earned increased to ₹4,937.19 crore (₹4,796.65 crore). Other income were higher at ₹658 crore (₹525.68 crore).

On a consolidated basis, the net profit during the third quarter of this fiscal was ₹174.76 crore. The bank had reported a loss of ₹573.52 crore in the corresponding period of previous fiscal. Total income increased to ₹5,919.14 crore (₹5,609.43 crore).

The Provision Coverage Ratio as on December 31 was 73.62%, the bank said

Punjab National Bank(PNB) reported surprise loss in Q3

February 05, 2020 Public sector banks, Punjab National Bank, Q3 results, Q3FY20, Results No comments

Public lender Punjab National Bank on Tuesday reported a surprise standalone loss of Rs 492.28 crore for the December quarter compared with a profit of Rs 246.51 crore in the same period last year.

Analysts were expecting a spike in the profit number on account of recovering from an NCLT account.

The PSU bank said provisions for the quarter jumped 73.25 per cent year-on-year to Rs 4,445.36 crore from Rs 2,565.77 crore.

Gross non-performing assets (GNPAs) eased to 16.3 per cent in December quarter from 16.33 per cent in the year-ago quarter, and 16.76 per cent in September quarter.

During the quarter, the bank availed dispensation for deferment of provision in respect of frauds amounting to Rs 238.84 crore.

Accordingly, an amount of Rs 59.71 crore has been charged to profit and loss account during the quarter and the rest Rs 179.13 crore has been deferred to subsequent quarters.

Further out of unamortised amount of Rs 2,284.32 crore up to quarter ended September 30, an amount of Rs 887.57 crore has been charged to P&L account during the quarter and remaining amount of Rs 1,396.75 crore has been carried forward to subsequent quarters. Total amount of remaining provision to be carried over to the subsequent quarters is Rs 1,575.88 crore,” the bank said.

Interest earned during the quarter rose 4.04 per cent to Rs 13,562.69 crore from Rs 13,035.08 crore last year.

Bank of India(BoI) reports net profit in Q3

January 31, 2020 Bank of India, Public sector banks, Q3 results, Q3FY20, Results No comments

Bank of India on Friday reported a consolidated net profit of Rs 138.20 crore for December quarter 2019-20.

The state-owned lender had posted a net loss of Rs 4,643.71 crore for the year-ago period.

Total income during the quarter under review rose to Rs 13,430.53 crore from Rs 11,791.16 crore in the same period a year ago, the bank said in a regulatory filing.

Provisioning for bad loans and contingencies was reduced to Rs 4,028.03 crore during the quarter as against Rs 9,123.65 crore earlier, it said. Of this, provisioning for bad loans stood at Rs 3,779.37 crore, down from Rs 9,201.55 crore in the year-ago period.

Gross non-performing assets (NPAs) were at 16.30 per cent of the gross advances at December-end 2019 from 16.31 per cent by the same period a year ago.

Net NPAs or bad loans were 5.97 per cent, as against 5.87 per cent.

"During the quarter ended December 31, 2019, the bank has made additional provision of Rs 501.45 crore in view of uncertainty of recovery and deterioration in value of underlying assets in respect of 49 NPA accounts.

"The provision in such accounts as on December 31, 2019 is Rs 1,083.79 crore," Bank of India said.

On standalone basis, there was a net profit of Rs 105.52 crore during the quarter under review. It had posted a net loss of Rs 4,737.56 crore in October-December, 2018-19.

Income was up at Rs 13,338.09 crore as against Rs 11,701.84 crore earlier.

On the NPA divergence, the bank showed a gap of Rs 1,117 crore for 2018-19.

The bank had reported net NPAs at Rs 19,118.95 crore as on March 31, 2019. While the RBI had assessed it at Rs 20,235.95 crore.

This divergence led to an adjusted loss of Rs 6,992.90 crore for 2018-19, while the bank had reported an overall loss of Rs 5,546.90 crore for the previous fiscal.

The provision coverage ratio of the bank as on December 31, 2019 is 77.15 per cent. It was 76.76 per cent by December-end 2018.

State Bank of India (SBI) Q3 profit jumps 41%, Biggest in 15 years

January 31, 2020 Public sector banks, Q3 results, Q3FY20, Results, state bank of india No comments

State Bank of India (SBI), the country's largest lender by assets, reported its biggest quarterly profit in at least 15 years on Friday, as provisions for bad loans fell and asset quality improved.

Net profit jumped to ₹5, 583 crore ($785.56 million) in the three months to Dec. 31, from 3,955 bcrore a year earlier. Analysts had expected a profit of ₹6,334 crore, according to Refinitiv data.

Gross bad loans as a percentage of total loans, a measure of asset quality, slipped to 6.94% at December-end from 7.19% in the prior quarter and 8.71% a year earlier, the Mumbai-based bank said in a regulatory filing.

IDFC First Bank reports q3 net loss

January 30, 2020 IDFC First Bank, Private Banks, Q3 results, Q3FY20, Results No comments

IDFC First bank on Wednesday reported loss of ₹1639 crore at the end of December quarter on account of higher provisioning towards stressed telecom account. The bank had reported a lost of ₹2504 crore during the same period last year.

"The Bank has a legacy exposure of Rs. 3,244 crores to this identified telecom company as of 31st December 2019, of which Rs. 2,000 crores is in the form of non-convertible debentures and Rs. 1,244 crores is in the form of non-funded exposure (Bank Guarantees) for spectrum.

There has been no payment default so far from this telecom company. However, considering the financial stress in the telecom companies related to payments due to the government, the bank has taken provisioning of 50% of total exposure towards this identified telecom company which is in financial stress, during the quarter ended on December 31,2019," said the bank in its press release.

The bank"s net interest income grew 34% year on year to ₹1534 crore, up from ₹1145 crore during the same period last year. Net interest margins improved to 3.86% at the end of December quarter from 2.89% during the same period last year..

Gross non performing assets as a percentage of total assets stood at 2.83% at the end of December 2019 compared to 2.62% during the same period last year.

DCB Bank Q3 net profit up 12.3%

January 26, 2020 DCB Bank, Private Banks, Q3 results, Q3FY20, Results No comments

Private sector lender DCB Bank on Saturday reported an increase of 12.31 percent in its net profit at Rs 96.70 crore for the third quarter ended December 2019. Its net profit was Rs 86.10 crore in the October-December period a year ago, DCB Bank said in a BSE filing.

DCB Bank's total income was up 13.66 percent at Rs 990.89 crore during the quarter under review as against Rs 871.78 crore in the corresponding period a year ago.

Net interest income increased 9.86 percent to Rs 323 crore as against Rs 294 crore for the same period last fiscal year.

While non-interest income marginally declined to Rs 93 crore against Rs 94 crore.

ICICI Bank Q3 net surges 158%, asset quality improves

January 25, 2020 ICICI Bank, Private Banks, Q3 results, Q3FY20, Results No comments

ICICI Bank on January 25 registered a healthy 158.4 percent year-on-year (YoY) growth in Q3FY20 profit, driven by lower provisions and recoveries from non-performing loans (NPLs).

Higher other income, net interest income (NII) and pre-provision operating profit (PPoP) also aided profitability for the country's largest private sector lender.

Net profit increased significantly to Rs 4,146.46 crore during the quarter, from Rs 1,604.91 crore in the same period last year.

NII during the quarter grew by 24.3 percent YoY to Rs 8,545.32 crore with loan growth of 13 percent YoY (to Rs 6.35 lakh crore) and 37 bps improvement in net interest margin.

Domestic advances grew 16 percent YoY and retail loan grew 19 percent YoY, the bank said, adding net interest margin for the quarter stood at 3.77 percent, higher from 3.64 percent in September quarter and 3.4 percent in December quarter 2018.

Total deposits increased by 18 percent to Rs 7.16 lakh crore, wherein CASA deposits grew 15 percent and term deposits grew 24 percent YoY.

Asset quality improved sequentially with gross non-performing assets (NPAs) as a percentage of gross advances falling 42 bps to 5.95 percent and net NPA declining 11 bps to 1.49 percent in the quarter ended December 2019.

"Overall numbers, barring a marginal increase in the watchlist, were very good on all cards. Provisions have not gone up which is a good comfort. There has been sizeable recovery during the quarter. Even reported net interest margin was higher," Siddharth Purohit of SMC Institutional Equities told CNBC-TV18.

In absolute terms, gross NPAs, as well as net NPAs, fell 4.8 percent each sequentially to Rs 43,453.86 crore and Rs 10,388.5 crore in Q3FY20 driven by better recoveries and upgrades, but slippages were higher on the quarter-on-quarter basis (QoQ).

"Recoveries, upgrades and other deletions excluding write-offs, from NPLs were Rs 4,088 crore in Q3FY20," ICICI Bank said, adding the gross additions to NPAs were Rs 4,363 crore for the quarter (against Rs 2,482 crore in the previous quarter).

The Bank's fund-based and non-fund based outstanding to borrowers rated BB and below (excluding non-performing assets) was Rs 17,403 crore during the quarter, higher compared to Rs 16,074 crore as of September 2019.

"Slippages are slightly elevated but recoveries in large accounts helped the bank contain its gross NPAs for the quarter. The increase in watchlist might be due to not only telecom exposure, but also its broking exposure which might be the case that classified under borrowers BB and below rated," Darpan Shah of HDFC Securities said.

Provisions and contingencies for the quarter at Rs 2,083.2 crore dropped sharply by 16.9 percent QoQ and 50.9 percent YoY.

Other income (non-interest income) increased 17.8 percent to Rs 4,573.98 crore YoY as fee income grew by 17 percent to Rs 3,596 crore and treasury income rose by 11 percent YoY.

Pre-provision operating profit jumped 22.8 percent to Rs 7,548.63 crore compared to the corresponding quarter last fiscal.

ICICI Bank said its consolidated profit grew by a whopping 149.2 percent YoY to Rs 4,670 crore in Q3FY20. "ICICI Life showed a 1.7 percent YoY growth in profit, ICICI General 23 percent, ICICI Securities 35.6 percent and ICICI Prudential AMC 55.6 percent," the bank said.

Its consolidated assets grew by 11 percent YoY to Rs 13.04 lakh crore for the quarter ended December 31, 2019.

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