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

Read More

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

Read More

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

Read More

IDBI Bank Q3 results net loss widens

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.

Read More

Syndicate Bank consolidated net profit rises in Q3

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.

Read More

Allahabad Bank Q3 net loss widens over two-fold

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).

Read More

Punjab & Sind Bank posts net loss in Q3

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.

Read More

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

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.

Read More