Corporation Bank Q3 net ptofit jumps on higher interest income

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.

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Union Bank of India Q3 net profit up

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.

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Uco bank net loss narrows in Q3

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.

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Andhra bank posts profit in Q3

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

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Punjab National Bank(PNB) reported surprise loss in Q3

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.

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Bank of India(BoI) reports net profit in Q3

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.

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

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.

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IDFC First Bank reports q3 net loss

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.

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