Indian Overseas Bank (IOB) reports net profit in Q3

Chennai-based public sector lender Indian Overseas Bank (IOB) on Tuesday reported a net profit of Rs 212.87 crore for the third quarter of FY21 as compared to a net loss of Rs 6,075 crore in the corresponding quarter of the previous financial year.

The bank has recorded an increase of 11.3% in its total income to Rs 5,786.54 crore as against Rs 5,197.94 crore. IOB, which was under Prompt Corrective Action (PCA), said it has been posting profits for four consecutive quarters and almost fulfilled all the requirements to come out of the PCA.

Speaking to media persons after releasing the earning performance, through virtual mode, Partha Pratim Sengupta, MD & CEO, IOB, said the bank plans to come out of PCA by focusing on recovery, low-cost deposits and less capital consuming advances.

“For the last four quarters, we have been making profit consistently. When compared with Q3 performance of FY20, there was a marked improvement in all key parameters. It is a matter of time for us to exit PCA and is up to the regulator to decide,” he said.

IOB had received a capital infusion of over Rs 8,000 crore in two tranches during the last two quarters of the last financial year, which helped the loss-making bank restart the business with a clean slate. Coupled with recovery and asset-light advances, the bank could achieve profits during the last four quarters.

The MD said there has been perceptible change in NPA levels achieved through recovery measures.

“Currently, the bank has a carry forward loss of Rs 17,500 crore. Our aim is to recover at least Rs 1,000 crore per quarter. In the first quarter of FY21, we recovered about Rs 200 crore due to lockdown, followed by Rs.760 crore and Rs 1,055 crore, respectively. Going forward, the focus will be on recovery in excess of Rs 1,000 crore and it will add to our bottom line,” he said.

According to him, IOB has evolved a policy of not taking fresh exposures in stressed sectors while the bank had exited from accounts in the stressed sectors, wherever feasible.

During the quarter, gross non-performing assets (GNPAs) reduced to Rs 16,753 crore from Rs 23734 crore and stood at 12.19% as against 17.12% and net NPA was contained at Rs 3,905 crore, as compared to 7,087 crore, which was 3.13% as against 5.81%. The provision coverage ratio improved to 91.91% from 86.20%.

While interest income contracted to Rs 4,244 crore from Rs 4,352 crore, other income rose 82.36 % to Rs 1,542.82 crore. Net interest margin stood at 2.45%.

He said around Rs 18,000 crore worth NPAs are awaiting NCLT’s resolution, while Rs 3,000 crore assets was expected to be restructured.

IOB had board’s approval to raise up to Rs 5,500 crore capital. He said the bank needed only Rs3,000 crore and the timing of the issue will be decided at a later date.

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Bank of India(BoI) Q3 results: Net profit jumps 412%

 

State-owned Bank of India on Wednesday reported a more than five-fold jump in standalone net profit to Rs 540.72 crore for the quarter ended in December. The bank had registered a net profit of Rs 105.52 crore in the year-ago period.

However, total income during the third quarter of financial year 2020-21 was down at Rs 12,310.92 crore as against Rs 13,338.09 crore in the same quarter of the previous year, Bank of India said in a regulatory filing.

On a consolidated basis, the bank posted a net profit of Rs 610.37 crore, up by more than four times as against Rs 138.20 crore in the year-ago period. Income was down at Rs 12,372.88 crore as against Rs 13,430.53 crore.

On the asset front, gross bad loans or non-performing assets (NPA) fell to 13.25 percent of gross advances at the end of December 2020 as against 16.30 percent in the year-ago period. In value terms, gross NPAs were Rs 54,997.03 crore, lower than Rs 61,730.54 crore.

Likewise, the net NPA was trimmed to 2.46 percent (Rs 9,077.32 crore) from 5.97 percent (Rs 20,113.34 crore).

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Central Bank of India Q3 net profit up 6.5%

State-owned Central Bank of India on Tuesday reported a 6.5 per cent rise in its net profit to Rs 165.41 crore in the third quarter ended December. The bank had posted a net profit of Rs 155.32 crore in the corresponding year-ago period.

Total income, however, fell to Rs 6,556.98 crore in October-December period of 2020-21 as against Rs 7,278.29 crore in same period of 2019-20, the bank said in a regulatory filing. Interest income for the quarter under review was down to Rs 5,782.61 crore from Rs 6,028.88 crore in the year-ago quarter.

The bank’s asset quality improved with gross non-performing assets(NPAs) falling to 16.30 per cent of the gross advances as of December 31, 2020, from 19.99 per cent by end of December 2019.

In value terms, gross NPAs or bad loans stood at Rs 29,486.07 crore as against Rs 33,259.59 crore. Net NPAs in the said quarter also came down to 4.73 per cent (Rs 7,514.65 crore) from 9.26 per cent (Rs 13,568.05 crore) in the year-ago period.

Provisions for bad loans and contingencies also decreased to Rs 743.74 crore for Q3FY21 from Rs 1,249.21 crore kept aside for the year-ago quarter.

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Punjab National Bank(PNB) reports Net profit in Q3

State-owned Punjab National Bank on Friday reported a net profit of Rs 506 crore for the quarter ended December 31, 2020 (Q3FY21). Sequentially, the profit declined 18.5 per cent. The lender had posted a profit of Rs 621 crore in the previous quarter (Q2FY21), and a standalone loss of Rs 492.28 crore during the corresponding period last year (Q3FY20).

The Delhi-based lender's net interest income -- the difference between interest earned through lending and interest paid to depositors -- came in at Rs 8,313 crore for the period under review . The NII had been Rs 8,393 crore during the September quarter. It had been Rs 4,355 crore during the same period a year earlier (Q3FY20).

The bank’s gross non-performing assets (NPAs) reduced to 12.99 per cent for the December quarter of this financial year, compared with 13.43 per cent in the previous quarter. Meanwhile, its net non-performing assets (NPAs) stood at 4.03 per cent.

The total income of the lender came in at Rs 23,298 crore during the quarter, against Rs 15,967 crore in the same period a year earlier. Its total expenses in Q3FY21, meanwhile, stood at Rs 16,907 crore.

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SBI Q3 result: Net profit slips 7% YoY

India’s biggest public sector bank (PSB) State Bank of India (SBI) on Thursday reported a 6.9 per cent year-on-year (YoY) drop in standalone net profit at Rs 5,196.22 crore for quarter ending December, 2020 (Q3FY21). The fall was largely driven by marginal increase in provisions against bad loans.

In the year-ago period, the lender had clocked a net profit of Rs 5,583.4 crore. On a quarterly basis, the PAT grew 13.6 per cent from Rs 4,574.2 crore reported in the September quarter of FY21 (Q2FY21).

The bottom-line earning beat Street estimates which had factored-in an up to 58 per cent YoY drop in PAT. The lowest PAT estimate was by HDFC Securities, at Rs 2,360 crore.

SBI's profit before tax (PBT) came in at Rs 6,990.77 crore the quarter, down 36.2 per cent YoY from Rs 10,969.66 crore reported in the corresponding quarter of the previous fiscal. On a quarterly basis, PBT climbed 10.2 per cent from Rs 6,341.45 crore clocked in Q2FY21.

Operating performance

State Bank reported operating profit of Rs 17,333.16 crore for the third quarter of this fiscal, as against Rs 18,222.56 crore in Q3FY20, translating to a 4.8 per cent decline.

"Excluding the one-off interest income and other income during Q3FY20, the YoY growth in net profit and operating profit for Q3FY21 would be 133.78 per cent and 26.23 per cent, respectively," the bank said in a statement.

Net interest income – or income derived by subtracting interest paid on loans from interest received on deposits – was up 3.7 per cent YoY at Rs 28,820 crore during the quarter under study, as against Rs 27,778.8 crore in Q3FY20. It increased 2 per cent QoQ from Rs 28,181.5 crore reported in Q2FY21.

Domestic net interest margin (NIM) for the quarter remained stable sequentially at 3.34 per cent.

Loan Book

The PSB's total gross advances increased 6.7 per cent on year to Rs 24.56 trillion, relative to Rs 23.01 trillion. Sequentially, the loan book grew 3 per cent from Rs 23.83 trillion.

Of this, domestic corporate loans stood at Rs 7,88,208 crore (up 2.23 per cent YoY), while retail loans were at Rs 8,31,134 crore (up 15.5 per cent YoY).

Meanwhile, deposits jumped 13.6 per cent YoY to Rs 35.35 trillion, the bank's financial statement shows.

"Credit Cost as at the end of 9MFY21 has declined 85 bps YoY to 0.38 per cent, whereas Cost to Income Ratio has marginally increased from 52.45 per cent in 9MFY20 to 53.25 per cent in 9MFY21," it said in a statement.

Asset quality

The bank's gross non-performing assets (GNPA) declined 7 per cent quarterly to Rs 1.17 trillion during the quarter under review, compared with Rs 1.26 trillion in the September quarter. In the year-ago quarter, the GNPAs were Rs 1.59 trillion. In percentage terms, GNPA ratio was 4.77 per cent compared with 5.28 per cent QoQ, and 6.94 per cent YoY.

NNPA, on the other hand, stood at Rs 29,031.72 crore, down 20.3 per cent QoQ from Rs 36,450.69 crore QoQ. NNPA ratio was at 1.23 per cent in the quarter under study.

"In the absence of the Supreme Court's order, the GNPA and NNPA would have been at 5.44 per cent and 1.81 per cent, respectively," it added.

The bank has received restructuring applications for loans worth Rs 18,125 crore in Q3FY21, well within guidance

Provisions

Total provisions for the quarter were Rs 10,342.39 crore, of which provisions for NPA were Rs 2,290.38 crore. In the year-ago period, total provisions were at Rs 7,252.9 crore, of which Rs 8,193.06 crore were earmarked for NPAs. At the end of Q3FY21, the bank held total Covid-19 related provisions worth Rs 12,976 crore.

Provision Coverage Ratio (PCR), the bank said, has improved to 90.21 per cent, up 848 bps YoY and 202 bps QoQ.

Fresh slippages during the quarter came in at Rs 237 crore, plunging 98.5 per cent YoY and 91.4 per cent QoQ from Rs 16,525 crore, and Rs 2,756 crore, respectively.

"Slippage ratio as on 31st Dec 2020 at 1.27 per cent (including proforma slippages); collection Efficiency is at 96.5 per cent," the bank said.

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Tamilnad Mercantile Bank Q3 results- Standalone profit zooms

 Tamilnad Mercantile Bank Ltd has clocked a standalone net profit at Rs 180.81 crore for the quarter ending December 31, 2020, a top official said on Tuesday.

The Tamil-Nadu based bank had recorded a net profit at Rs 92.42 crore in the corresponding quarter of the previous year.

For the nine month period ending December 31, 2020 standalone net profit surged to Rs 422.35 crore as against Rs 243.49 crore recorded in the same period last fiscal.

The standalone total income for the quarter ending December 31, 2020 stood at Rs 1,083.45 crore as against Rs 998.91 crore recorded during the same period last fiscal.

Total business for the n
ine month period ending December 31, 2020 was up at Rs 68,101.12 crore, up from Rs 62,544.21 crore clocked during the same period year ago.

The Gross NPA as on December 31, 2020 stood at 3.24 per cent while net NPA was 0.92 per cent.

Briefing reporters, the bank's MD K V Rama Moorthy said TMB has been giving continued thrust on advances to priority sectors like agriculture, micro, small and medium enterprises and housing, constituting 76.57 per cent of its adjusted net bank credit above the regulatory requirement of 40 per cent.

The advances to the priority sector increased to Rs 21,163.85 crore as against Rs 17,866.38 crore registered in the same period last fiscal, Moorthy also the bank's CEO said.

The bank's advances to agriculture sector was Rs 7,812.54 crore, constituting 25.86 per cent of total advances, above the regulatory requirement of 18 per cent.

There was a 14.78 per cent growth in credit to micro, small and medium enterprises sector, from Rs 10,362.56 crore to Rs 11,893. 72 crore, he said.

Referring to the Year-on-Year performance, he said deposits increased to Rs 37,888.62 crore, compared to Rs 35,174.49 crore, registering a growth of 7.72 per cent

The CASA position saw a growth of 16.48 per cent growth to Rs 10,392.94 crore, he said.

The advance level of the bank increased to Rs 30,212.50 crore with a growth of 10.39 per cent and the average growth was 9.85 per cent.

On the network expansion, he said six new ATMs were added in the current fiscal, taking the overall number to 1,162.

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City Union Bank Q3 results- Net profit declines 12%

Private sector City Union Bank on Wednesday posted a decline of 11.7 per cent in its net profit to Rs 169.93 crore for the quarter ended in December.The bank had registered a net profit of Rs 192.43 crore in the corresponding period of the preceding financial year.

Bank's total income during the third quarter of financial year 2020-21, however, moved up to Rs 1,277.80 crore as against Rs 1,203.24 crore in the same period of 2019-20, City Union Bank NSE 0.52 % said in a regulatory filing.

Even as the interest income fell 1.2 per cent to Rs 1,048.03 crore during the reported quarter, the bank's income from other sources jumped 61.4 per cent to Rs 229.77 crore.

Other income relates to income from non-fund based banking activities, including commission, fees, gains from securities transactions, ATM sharing fees, recoveries from written-off accounts and other miscellaneous income.

On the asset front, the bank showed improvement with the gross non-performing assets (NPAs) falling to 2.94 per cent of gross advances as on December 31, 2020 from 3.50 per cent in the year ago period.

In value terms, the gross NPAs or bad loans stood at Rs 1,071.69 crore, down from Rs 1,185.43 crore.Net NPAs too came down at 1.47 per cent (Rs 527.15 crore) from 1.95 per cent (Rs 649.41 crore).

Provisions for bad loans and contingencies were more than doubled to Rs 218.50 crore for the quarter under consideration from Rs 81 crore in the year-ago period.

City Union Bank said during the quarter, it has restructured 60 accounts amounting to Rs 321.06 crore."As of December 31, 2020, 233 accounts amounting to Rs 807.07 crore were restructured; the bank holds Rs 26.28 crore towards provision for such accounts," it said.

Further, the bank said it has made an additional provision of Rs 125 crore during the quarter towards contingency arising out of the COVID pandemic and holds a total provision of Rs 465 crore as of December 31, 2020.

Bank's provision coverage ratio stood at 73 per cent at the end of the third quarter of the financial year 2020-21.

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IDFC First Bank posts net profit in Q3 as provisions decline

IDFC First Bank reported a net profit of Rs 130 crore in the quarter ended December 31, 2020, as provisions declined significantly. The bank, which came into existence after the merger of IDFC Bank and Capital First, had posted a loss of Rs 1,639 crore in the corresponding quarter last fiscal. In sequential terms, the lender had reported a profit of Rs 101 crore in the preceding quarter.

Net interest income (NII) grew by 14 per cent year-on-year to Rs 1,744 crore in Q3 FY21 from Rs 1,534 crore in Q3 FY20, as per regulatory filing by the bank. It grew by 5 per cent quarter-on-quarter from Rs 1,660 crore in Q2 FY21. NII for the current quarter includes the impact of provision for interest reversal for proforma NPA cases, the lender informed. Net interest margin (NIM) improved to 4.65 per cent in Q3 FY21 as compared to 3.86 per cent in Q3 FY20 and 4.57 per cent in Q2 FY21.

"The total provisions for Q3 FY21 were Rs 595 crore as compared to Rs 2,305 crore (including provision of Rs 1,622 crore on one telecom exposure) in Q3 FY20 and as compared to Rs 676 crore in Q2 FY21. This includes additional COVID provisions of Rs 390 crore made during the quarter," IDFC First Bank said.

Total income (including trading gain) grew 24 per cent YoY to Rs. 2,616 crore in Q3 FY21 from Rs 2,113 crore in Q3 FY20. It grew by 14 per cent QoQ from Rs 2,288 crore in Q2 FY21. Pre-Provisioning Operating Profit (PPOP), including trading gains worth Rs 290 crore, grew 13 per cent YOY to Rs 773 crore in Q3 FY21 as compared to Rs 682 crore in Q3 FY20 (including trading gains of Rs 142 crore). It de-grew by 4 per cent QoQ from Rs 803 crore in Q2 FY21 (including trading gains of Rs 337 crore).

Current Account and Savings Account (CASA) deposits increased 150 per cent YoY to Rs 40,563 crore as on December 31, 2020, from Rs 16,204 crore as on December 31, 2019. Meanwhile, CASA ratio improved to 48.31 per cent as on December 31, 2020, from 24.06 per cent as on December 31, 2019. Average CASA Ratio also improved to 44.66 per cent as on December 31, 2020, from 20.88 per cent as on December 31, 2019.

IDFC First Bank's gross NPA (GNPA) reduced to 1.33 per cent as of December 31, 2020, from 1.62 per cent as of September 30, 2020. Its net NPA (NNPA) reduced to 0.33 per cent as of December 31, 2020, from 0.43 per cent as of September 30, 2020. Provision Coverage Ratio (PCR) was 75.14 per cent as of December 31, 2020 as compared to 57.34 per cent as of December 31, 2019.

"The above figures include the impact of the Hon. Supreme Court notification to stop NPA classification post August 31, 2020, till further orders. Without this impact, the proforma GNPA as on December 31, 2020 would have been 4.18 per cent and the proforma NNPA would have been 2.04 per cent. As compared to Long Term Average of 4 pre-COVID quarters, the proforma GNPA is higher by 155 bps," the bank said.

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