ICICI bank Q3 profit rises 19%

Private sector lender ICICI Bank on Saturday reported 19% increase in net profit at ₹4,940 crore for the quarter ending 31 December, 2020. It was ₹4,146 crore a year ago.

Total income of country's second largest private sector lender by assets increased 3% to ₹24,416 crore as compared to ₹23,638 crore in year-ago period.

Total deposits grew by 22% year-on-year to ₹8,74,348 crore at 31 December, 2020. The lender saw 19% growth in average current and savings account (CASA) deposits in Q3FY21 and average CASA ratio was 41.8% in Q3FY21. Term deposits grew by 26% year-on-year at 31 December, 2020

The lender’s net interest income (NII), the difference between interest earned and interest expended, rose 16% year-on-year (y-o-y) to ₹9,912 crore in Q3 of FY21. Net interest margin (NIM), a key measure of profitability, expanded 10 basis points (bps) sequentially to 3.67%. On the other hand, the bank’s provisions rose 31.6% y-o-y to ₹2,742 crore.

The reported gross non-performing assets ratio was at 4.38%, but would have been 5.42% if not for the Supreme Court order asking banks not to classify non-paying loan accounts as NPAs after the end of the loan repayment moratorium.

Its overall provisions increased to ₹2,741 crore from the year-ago period's ₹2,083 crore, but lower when compared to the preceding quarter's ₹2,995 crore, as per its exchange filing.

It made a contingency provision of ₹3,012.16 crore for borrower accounts not classified as NPAs pursuant to the interim order of the Supreme Court and utilised ₹1,800 crore of the ₹8,772.30 crore in provisions for the pandemic made earlier.

As at December 31, 2020, the bank held an aggregate COVID-19 related provision of ₹9,984.46 crore, including contingency provision amounting to ₹3,509.46 crore, it said.

It said the provisions held by it are more than what is required by the RBI and the bank's capital and liquidity position are strong.

Its overall capital adequacy stood at 18.04 per cent as of December 31, 2020.

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Canara Bank Q3 standalone net profit dips 9%

State-run Canara Bank on Wednesday reported a 9 per cent decline in its standalone net profit to Rs 696 crore on higher provisioning.

The bank amalgamated Syndicate Bank with itself effective April 1, 2020. The financials as of December 2019, March, June and September 2020 are combined figures of both banks, the bank said in its investors presentation.

The amalgamated entity had posted a standalone profit after tax of Rs 764 crore in the December quarter of the previous fiscal. The pre-amalgamation standalone profit in Q3 FY21 stood at Rs 329.62 crore. The bank further reported a consolidated net profit of Rs 739.20 crore in the third quarter ended December of the current fiscal as against Rs 406.43 crore during the year-ago period. However, the consolidated profit of Q3FY21 is not comparable year-on-year.

"We want to make our balance sheet very strong and it should be future ready," the bank's managing director and CEO L V Prabhakar told reporters.

The bank has an additional provisioning of Rs 1,901 crore as of today. In Q3, it did Rs 738 crore of floating provision. Apart from that, it has not recognised Rs 413 crore of interest on probable NPA. If it had added both of these, the profit could have gone more than Rs 1,500 crore, he stated.

Net-interest income grew by 14.58 per cent to Rs 6,081 crore as against Rs 5,307 crore. Its domestic net interest margins improved 26 bps.

The lender reported a 210 per cent growth in its treasury income at Rs 2,016 crore as against Rs 650 crore in the same quarter of the previous fiscal.

"The mix of the securities which we have has given us the leverage encash the situation and to book profit. We have a robust risk management system and it has helped us," he said.

Gross non-performing assets (GNPA) ratio reduced to 7.46 per cent from 9.82 per cent last year. Net NPAs also declined to 2.64 per cent from 5.62 per cent.

Prabhakar expects GNPA to be at 8.75 per cent and net NPA at 3.90 per cent by March-end.

Fresh slippages in the quarter stood at Rs 395 crore. Total cash recovery including recovery from written-off accounts stood at Rs 2,893 crore.

The lender expects recoveries worth Rs 6,000-7,000 crore in the fourth quarter, he said.

Prabhakar said the lender's one-time restructuring book stands at Rs 11,000 crore.

Provision coverage ratio (PCR) improved to 84.89 per cent from 70.37 per cent in the same quarter of the previous fiscal.

Its capital adequacy ratio (CRAR) stood at 13.69 per cent as at December 2020. Out of which tier-I is 10.45 per cent and tier-II is 3.24 per cent.

Its domestic advances grew 7.55 per cent to Rs 644,826 crore, and its retail lending portfolio increased by 9.33 per cent to Rs 113,835 crore.

The bank's domestic deposit rose 9.49 per cent to Rs 928,325 crore.

It expects a deposit growth of 8 per cent and credit growth of 6 per cent by the end of this fiscal.

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Kotak Mahindra Bank Q3 results: Net profit rises 16%

Kotak Mahindra Bank today reported a 16% year-on-year rise in its standalone net profit for third quarter ended December 31. Net profit rose to Rs.1,854 crore, from Rs.1,596 crore in Q3FY20, up 16%. Share prices were up about 2% in noon trade.

Highlights of Kotak Mahindra Bank Q3 results:

Net Interest Income (NII) for Q3FY21 increased to Rs.4,007 crore, from Rs.3,430 crore in Q3FY20, up 17%.

Net Interest Margin (NIM) for Q3FY21 was at 4.51%.

CASA ratio as at December 31, 2020 stood at 58.9% compared to 53.7% as at December 31, 2019.

Advances as at December 31, 2020 were at Rs.214,103 crore ( Rs. 204,845 crore as at September 30, 2020 and Rs.216,774 crore as at December 31, 2019)

As at December 31, 2020, GNPA was 2.26% & NNPA was 0.50%.

"The Bank has not classified any NPAs since August 31, 2020, basis the interim order of Hon. Supreme Court. Had the Bank classified the borrowers more than 90 days overdue on December 31, 2020 as NPA, GNPA would be 3.27% September 30, 2020: 2.70%); NNPA would be 1.24% (September 30, 2020: 0.74%). The Bank has, however, made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium," the bank said.

Capital adequacy ratio of the Bank as per Basel III, as at December 31, 2020 was 21.5% and Tier I ratio was 20.9%

COVID related provisions as at December 31, 2020 stood at Rs.1,279 crore. In accordance with the Resolution Framework for COVID-19 announced by RBI on August 6, 2020, as at December 31, 2020, the Bank has approved, for certain eligible borrowers, one-time restructuring of 0.28% of net advances.

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RBL Bank Q3 results: Net profit rises 110%, asset quality improves

Private sector RBL Bank on Thursday posted a 110% rise in its net profit year-on-year at Rs.147.1 crore in the quarter ended December 31, 2020. In the corresponding quarter, the Mumbai-headquartered bank posted a net profit of Rs.6,995 crore.

Its total revenue grew by 6% year-on-year to Rs.1,488 crore as against Rs.1,388 crore a year ago, RBL Bank said in a regulatory filing. The net interest income fell 2% to Rs.932 crore.

The bank's gross non-performing assets fell to 1.84% of the gross advances at the December quarter, compared to 3.33% in the corresponding quarter last year. Net NPAs also fell 0.71% as against 2.07% in the year-ago period.

The December-quarter provisions and contingencies stood at Rs.610 crore versus 623 crore year ago.

RBL also said that its Q3 asset quality improved on a sequential basis in absolute as well as percentage terms.

"COVID-19 is a global pandemic, which continues to spread across the globe and has contributed to increase in volatility in financial markets and an unprecedented level of disruption on socio-economic activities. The extent to which the COVID-19 pandemic will impact the Bank's operations and asset quality will depend on future developments, which are highly uncertain," the private lender said in a regulatory filing.

During the quarter and nine months ended December 31, 2020, the bank has raised additional capital of Rs.156,600 lakh on preferential basis through an issuance of 88,474,577 fresh equity share of face value of Rs.10 each at a price of Rs.177.

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IDBI Bank Q3 results: Net profit up

IDBI Bank on Thursday reported a standalone net profit of Rs 378 crore for December quarter of the current fiscal year as bad loans shrank.

The bank had posted a net loss of Rs 5,763 crore for the year-ago period.

Total income, however, fell during the quarter under review at Rs 5,932.25 crore as against Rs 6,215.60 crore in the same period of 2019-20 as interest income came down.

Interest income of the lender was down at Rs 4,563.98 crore during the quarter as against Rs 4,937.24 crore in the year-ago period, the bank said in a regulatory filing.

However, the net interest income grew 18 per cent to Rs 1,810 crore.

Net Interest Margin (NIM) improved by 60 basis points to 2.87 per cent in the third quarter as compared to 2.27 per cent in the same period a year ago, IDBI Bank said in a release.

The bank's asset quality improved as gross non-performing assets (NPAs) or bad loans reduced to 23.52 per cent of the gross advances as of December 31, 2020 as against 28.72 per cent by the same period a year ago and 25.08 per cent by the end of September 2020.

Net NPAs decreased to 1.94 per cent from 5.25 per cent.

In value terms, gross NPAs were worth Rs 37,559.39 crore at December-end 2020 as against Rs 49,502.68 crore by the end of same month a year ago. Net NPAs were valued at Rs 2,410.90 crore, lower than Rs 6,805.49 crore.

However, the overall provisions for bad loans and contingencies were kept higher at Rs 796.31 crore for December quarter 2020-21 as against Rs 521.95 crore kept aside for the year-ago period.

But out of this, the provisions for bad loans were substantially lower at Rs 48.52 crore as against Rs 440 crore a year ago.

Provision Coverage Ratio (including technical write-offs) improved to 97.08 per cent as on December 31, 2020 from 92.41 per cent a year ago and 95.96 per cent by the end of September 2020.

IDBI Bank said it raised equity capital of Rs 1,435.18 crore during the quarter through QIP.

The tier 1 capital improved to 12.22 per cent from 10.16 per cent and CRAR (capital to risk weighted assets ratio) improved to 14.77 per cent from 12.56 per cent, it added.

Among others, during the quarter ended December 2020, the bank has sold 23 per cent stake out of 48 per cent holding in its joint venture IDBI Federal Life Insurance Company (now Ageas Federal Life Insurance Company Ltd).

The post-sale holding in the joint venture is 25 per cent as on December 31, 2020, the bank said.

Further, in accordance with the RBI guidelines relating to COVID-19, the bank has cumulative COVID-19 related provision of Rs 436 crore as on December 31, 2020.

The provision made by the bank is more than minimum required as per the RBI guidelines, it said.

The bank has made provision of Rs 70 crore during the quarter (Rs 270 crore as on September 30, 2020 has been continued), towards the provisioning requirement for cases to be restructured under the resolution framework.

The cumulative provision is Rs 340 crore as on December 31, 2020, said the lender.

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Axis Bank Q3 results: Net profit drops 36% , NII rises 14%

 

Axis Bank on Wednesday reported a 36% year-on-year drop in net profit to Rs.1,116.6 crore for the quarter ended 31 December. The private lender reported a net profit of Rs.1,757 crore for the corresponding quarter last year.

"Reported profits after tax for the quarter are adversely impacted to the extent of around Rs.1,050 crore on account of prudent expenses and provisioning charges during the quarter," the bank said.

The bank’s operating profit for the quarter grew 6% year-on-year to Rs.6,096 crore. The core operating profit for the quarter grew 10% year-on-year to Rs.5,754 crores.

The private lender's net interest income, the difference between interest earned and interest, rose 14% year-on-year to Rs.7,372.7 crore. NII in Q3FY20 was at Rs.6,452.98 crore. NII before interest reversals increased 19% YOY to Rs.7,987 crore, the bank said in the filing. Net interest margin (NIM) for Q3FY21 was 3.59% as against 3.57% for Q3FY20. NIM before interest reversals stood at 3.89%, the bank added.

Provisions in the quarter under review increased 32.7% year-on-year to Rs.4,604.28 crore, the bank said in the filing.

In the December quarter, the bank reported gross NPA and net NPA at 3.44% and 0.74% respectively as against 4.18% and 0.98% during the September quarter. The restructured loans as at 31st December, 2020 stood at Rs.2,709 crore that translates to 0.42% of the gross customer assets, the bank said.

Commenting on the bank's performance in Q3, Amitabh Chaudhry, MD&CEO, Axis Bank said, “As the economy turns around, we see fresh enthusiasm and positivity returning to both retail and corporate business. Digital has been one of our biggest strengths and we have fortified it further. With new collaborations with the best brands in their respective fields, we have rolled out some of the most innovative products and services for our customers, with unique features and benefits."

Loan book (including TLTRO investments) grew by 9% year-on-year to Rs.600,835 crore while retail disbursements in Q3FY21 stood at all-time highs, the lender said. Corporate loans (including TLTRO investments) reported 11% year-on-year increase, the lender said.

Axis Bank’s balance sheet improved 15% YOY and to Rs.9,38,049 crore as on 31st December 2020. The total deposits grew by 11% on period end basis and by 8% YOY on quarterly average balance (QAB) basis. On a QAB basis, savings account deposits jumped 14% YOY, retail savings deposits increased 20% YOY, current Account deposits rose 15% YOY and retail term deposits grew 17% YOY. CASA and Retail Term Deposits on QAB basis put together increased 16%YOY, the lender said.

Last week, the Competition Commission of India approved the acquisition of 19.002% stake in Max Life Insurance Company by Axis Bank and its subsidiaries (Axis Capital and Axis Securities), after revised agreements signed by all entities in October last year.

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Bank of Baroda(BoB) posts net profit on lower provisions

Bank of Baroda(BoB) on Wednesday reported a Rs 1,061-crore profit for the quarter ended December, against a net loss of Rs 1,407 crore a year ago, as provisions fell 45% year-on-year (y-o-y) to Rs 3,957 crore.

Net interest income (NII) – the difference between interest earned and interest expended – stood at Rs 7,749 crore, was up 9% y-o-y. The net interest margin (NIM) rose 11 basis points (bps) sequentially to 3.07%. The operating profit rose 12.8% y-o-y to Rs 5,591 crore.

The gross NPA ratio at the end of December stood at 8.48%, down 66 bps sequentially. Net NPAs were at 2.39%, 12 bps lower than 2.51% at the end of the September quarter.

BoB has made contingent provisions of Rs 1,522 crore as a prudent measure. Total additional provisions as on December 31 stood at Rs 1,891.5 crore. The provision coverage ratio (PCR) improved to 85.46% from 77.77% a year ago.

The management said any worsening in the asset quality is likely to be led by the retail and MSME segments. Sanjiv Chadha, MD and CEO, said over the last two-three months, there has been a sharp recovery and the main beneficiary of this recovery has been the corporate piece. The return of demand, profits and pricing power have accrued mainly to companies and that adds resilience to the corporate book. Also, companies have already been through a phase of stress in recent years. So, the ones that remain standing are more resilient and offer comfort to the bank.

“There will be stress in some parts of the book, but we have fair handle in terms of how much is there and what are the likely implications. But, in terms of the known-unknowns, things which have not fully played out yet that is where the MSME and retail are,” Chadha said, adding, “Particularly, retail is the kind of book which was not being stress-tested. The kind of stress we are seeing now is something which is unprecedented, and therefore, it is likely that there may be some slippages which you cannot anticipate.”

It has become harder to foresee or address retail stress, Chadha said, because a glance at the bank’s restructured book shows that 80% of it has come from corporates and the retail accounts for a very small figure. “Therefore, we have not been able to address whatever stress might be there at least through the restructuring mode – which means that either people will actually start paying up on time [or] there is a fair possibility that some stress will come through NPAs.”

At the same time, BoB is not too worried about major retail slippages because unsecured retail loans constitute less than 1% of its loan book. More than 70% of the retail book is made up of home loans.

Domestic advances grew 8.31% y-o-y to Rs 6.33 lakh crore at the end of December. The current and savings account (CASA) ratio improved 240 bps y-o-y to 41.2% in Q3FY21. Domestic deposits rose 6.74% y-o-y to Rs 8.35 lakh crore. The bank expects to clock a loan growth of 7-8% in FY21 and raise Rs 2,000-4,000 crore through a qualified institutional placement (QIP) in the current quarter.

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Indian Bank Q3 Profit more than doubles

 

State-owned Indian Bank on Friday reported more than doubling of its profit at Rs 514.28 crore for the third quarter ended December 2020. The bank's profit in the year-ago period stood at Rs 247.16 crore.

Total income during the quarter under review was Rs 11,421.34 crore, up from Rs 6,505.62 crore in the same period a year ago, Indian Bank said in a regulatory filing.

However, the bank's gross non-performing assets (NPAs) as a percentage of assets rose to 9.04 per cent during October-December 2020-21 from 7.20 per cent in the year-ago period.

The percentage of net NPA was lower at 2.35 per cent as against 3.50 per cent.

The bank further said it had made provisioning of Rs 2,314.35 crore towards bad loans and contingencies as against Rs 1,529.26 crore in the same quarter a year ago.

During the quarter ended December 31, 2020, the bank raised additional tier-1 capital in three tranches aggregating to Rs 2,000 crore through private placement of Basel III compliant AT 1 Perpetual Bonds.

Non-performing loan provision coverage ratio is 86.51 per cent as on December 2020, it said.

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