RBL Bank Q3 Results: Lender reports 6% rise in net profit on growth in NII

 

RBL Bank on Thursday reported a 6 per cent rise in net profit led by growth in net interest income (NII) despite a rise in expenses as the bank increased its branch presence during the quarter.

Net profit rose to Rs 156 crore in the quarter ended December 2021 from Rs 147 crore a year earlier mainly due to a 11 per cent growth in NII to Rs 1,010 crore from Rs 908 crore a year earlier.

Total operating expenses rose 46 per cent to Rs 1,000 crore in December 2021 from Rs 683 crore a year earlier reflecting the increase in operation, technology, people and compliance costs as the bank added 90 branches between September 2021 and January 2022 to take total branches beyond 500.

A 16 per cent rise in wholesale loans made up for the 6 per cent fall in retail loans as the bank consciously went slow on micro finance and small business loans due to the uncertainty caused by the rise in Covid infections during the quarter.

CEO Rajeev Ahuja said he expects retail loans to pick up next fiscal in line with the economic recovery and as the bank uses its expanded presence to ramp up loans including in micro finance.

The bank's advances increased 3 per cent year on year to Rs 58,141 crore. Retail loans make up 53 per cent of the bank's loan book and Ahuja expects it to increase to more than 60 per cent in the next three years.

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Bank of Maharashtra Q3 net doubles on robust NII

Bank of Maharashtra posted a 110.7 per cent rise in net profit at Rs 325 crore for the third quarter ended December 2021 (Q3FY22) on robust growth in net interest income.

The net profit was Rs 154 crore in Q3FY21 and Rs 263 crore in the second quarter ended September 2021 (Q2FY22).The Pune-based lender's stock was trading 2.56 per cent lower at Rs 20.95 per share on BSE.

Net Interest Income (NII) grew by 16.90 per cent to Rs 1,527 crore in Q3FY22 as against Rs 1,306 crore for Q3FY21. Sequentially, growth was flat with NII of Rs 1,500 crore in Q2FY22.Public sector lender’s net interest margin (NIM) improved to 3.11 per cent in Q3FY22 from 3.06 per cent in Q3FY21. Sequentially, NIM declined from 3.27 per cent in Q2FY22.

The non-Interest income rose by 6.35 per cent on YoY basis to Rs 611 crore in Q3FY22 from Rs 575 crore in Q3FY21. Sequentially, it declined substantially from Rs 832 crore in the quarter ended September 2021.

Its gross Advances grew by 22.98 per cent on YoY basis to Rs 1,29,006 crore in Q3FY22 as against Rs 1,04,904 crore in Q3FY21.The total Deposits up by 15.21 per cent to Rs 1,86,614 crore in Q3FY22 from Rs 1,61,971

A S Rajeev, managing director and chief executive said the credit growth is expected to be 17-20 per cent in the current financial year (FY22). The liabilities (deposits) are expected to grow by 10-12 per cent growth in FY22. The focus is on growth with stability and compliance.

Its provisions for non-performing assets were higher at Rs 587 crore in Q3FY22, up from Rs 385 crore in Q3FY21. Provisions were down from Rs 921crore in Q2 FY22.The Provision Coverage Ratio (PCR) improved to 93.77 per cent at end of December 2021 from 89.55 per cent a year ago and 92.38 per cent as of September 2021.

Its Gross NPA declined to 4.73 per cent in December 2021 from 7.69 per cent a year agoas and 5.56 per cent in September 2021. The bank wrote-off NPAs of Rs 500 crore in Q3FY22.The Net NPA reduced to 1.24 per cent in December 2021 from 2.59 per cent a year ago and 1.73 per cent in September 2021.

The current capital adequacy level is adequate for regulatory and business requirements. Yet, the bank plans to raise equity capital of Rs 500-750 crore in the current quarter for future growth considerations. It will approach institutional investors to raise fresh capital.

Bank may also look at Rs 1,000 crore through tier I bonds in the first quarter of next financial year (FY23), Rajeev said.Its Capital adequacy ratio stood at 14.85 per cent in December 2021, up from 13.65 per cent in December 2020.

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ICICI Bank Q3 Results: Profit rises 25% YoY

Private lender ICICI Bank on Saturday reported a 25 per cent year-on-year (YoY) rise in standalone net profit at Rs 6,194 crore for the December quarter compared with a profit of Rs 4,940 crore in the corresponding quarter last year.The bank reported a 23 per cent YoY jump in net interest income (NII) at Rs 12,236 crore from Rs 9,912 crore in the same quarter last year.

Net interest margin (NIM) for the quarter came in at 3.96 per cent compared with 4 per cent in the September quarter and 3.67 per cent in the year-ago quarter.Provisions (excluding provision for tax) for the quarter fell 27 per cent YoY to Rs 2,007 crore from Rs 2,742 crore in the same period last year, the bank said in a filing to BSE. Provision coverage ratio, meanwhile, stood at 79.9 per cent as of December 31, 2021.

Net NPA ratio declined to 0.85 per cent from 0.99 per cent in the preceding quarter, the lowest since March 31, 2014.The consolidated profit after tax for the bank rose 19 per cent YoY to Rs 6,536 crore from Rs 5,498 crore in the same quarter last year.

The bank said its total period-end deposits crossed Rs 10 lakh crore mark, with total deposits growing 16 per cent YoY to Rs 10,17,467 crore. Average CASA ratio was 45 per cent in the recently concluded quarter.

ICICI Bank's non-interest income, excluding treasury income, rose 25 per cent YoY to Rs 4,899 crore from Rs 3,921 crore. Fee income rose 19 per cent YoY to Rs 4,291 crore from Rs 3,601 crore YoY.

Fees from retail, business banking and SME customers constituted about 76 per cent of total fees in the December quarter, the bank said in the filing.

Treasury income was Rs 88 crore compared with Rs 766 crore (US$ 103 million) in the year-ago quarter. The treasury income of last year included gain of Rs 329 crore from sale of shares of ICICI Securities.

"Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 4,209 crore in Q3. The gross NPAs written off in Q3 were Rs 4,088 crore. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines was Rs 9,684 crore," the bank said.

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Bandhan Bank Q3 Results: Net profit jumps 35.7% YoY

Bandhan Bank on January 21 posted a net profit of Rs 859 crore for the third quarter of financial year 2021-22, which marked a 35.7 percent year-on-year (YoY) jump as compared to Rs 633 crore profit logged in the same quarter last fiscal.

Net interest income (NII) for the quarter ending December 2021 grew by 2.6 percent to Rs 2,124.7 crore, as against Rs 2,071.7 crore in the year-ago period.Non-interest income surged by 26.7 percent to Rs 712.3 crore as compared to Rs 562.3 crore in the corresponding quarter of the previous year.

Operating profit increased by 1.4 percent YoY to Rs 1,950.1 crore. Net interest margin (annualised) for Q3 FY22 stood at 7.8 percent as against 7.6 percent in September 2021 quarter.

Commenting on the financial performance, Bandhan Bank MD and CEO Chandra Shekhar Ghosh said, “We have seen all round recovery during the quarter with improved collection and increase in disbursement."

Total deposits of the lender increased by 18.7 percent YoY to Rs 84,499.8 crore as of December 31, 2021, the bank said.

The lender also noted that its gross non-performing assets (NPAs), as of December 31, 2021, is at Rs 9,441.6 crore (10.81 percent) as against Rs 8763.6 crore (10.82 percent) as on September 30, 2021.

Net NPAs as of December 31, 2021, stood at Rs 2,413.1 crore (3.01 percent) as against Rs 2,265.8 crore (3.04 percent) as of September 30, 2021.

"Q4 historically has been the best quarter for the bank and we are positive of our business going forward. With Group loan share in total advances reduced to 52 percent, the bank is on track to achieve the diversification strategy which it had laid down for FY25," Ghosh added.

Bandhan Bank, in a press release, also noted that its outlets as of December 31, 2021, stood at 5,626. The network consists of 1,176 branches, 4,450 banking units as against 1,107 branches, and 4,090 banking units as of December 31, 2020.

The total number of ATMs stood at 489 as of December 31, 2021, against 487 as of December 31, 2020. During the quarter, the number of employees of the bank has gone up from 52,976 to 55,341, it added.

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IDBI Bank Q3 net profit surges 53%

IDBI Bank reported a 53% rise in net profit mainly due to a decrease in cost of funds, which helped boost both net interest income and net interest margin (NIM).Net profit rose to Rs.578 crore in the quarter, from Rs.378 crore a year ago.

Net interest income (NII), or the difference between the interest earned on loans and that paid on deposits, increased 31% to Rs.2,383 crore mainly as the bank's cost of funds fell 60 basis points year on year to 3.79% in December 2021.

The fall in its cost of funds also helped IDBI Bank improve its NIM, which is the difference between the yield a bank earns on loans and that it pays for deposits. NIM improved 101 bps to 3.88% from 2.87% a year ago.

The rise in NII and NIM masked a tepid loan growth of 5% led by a 13% year on year growth in mid corporate loans and a 5% growth in retail, agriculture and micro enterprises. Total deposits fell 1% as the bank moved away from high-cost bulk deposits.

CEO Rakesh Sharma acknowledged that the bank's loan growth has been slow but said he is confident of growing above 10% led by retail and mid corporate loans in the next fiscal. A drop in provisions also contributed to the bank's net profit. Provisions dropped 11% to ₹1,189 crore from ₹1,332 crore a year ago as the bank continued to improve recoveries.

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CSB Bank Q3 Results: Net profit up 25% QoQ

 

CSB Bank, in its quarterly earnings report on Friday, reported a total income of Rs 579.81 crore for the quarter ended December 31, 2021, as against Rs 555.64 crore a quarter previously. The bank also reported a net profit of Rs 148.25 crore, a quarter-on-quarter increase of 25% from Rs 118.57 crore.

According to the report, the company had gross non-performing assets (NPAs) worth Rs 388.95 crore, a 33.72 QoQ decrease, and net NPAs of Rs 199.74 crore, down a significant 46 percent QoQ.

The company further reported earnings per share of Rs 8.55 lakh (at a face value of Rs 10 per share), which was an increase of 25 percent QoQ, and paid-up equity capital of Rs 173.54 crore, the same as the previous quarter.

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YES Bank Q3 profit rises 76.8% YoY

Yes Bank on Saturday reported a 76.8% year on year rise in net profit at Rs.266.4 crore in October-December quarter of FY22 as compared to Rs.150.7 crore profit during the same quarter last year. The private lender's profit rose 18.2 per cent on quarter on quarter basis from Rs.225 crore, while operating profit was up 7.7 per cent on Q-o-Q basis and down 66.4 per cent on YoY basis.

YES Bank's total net income in Q3 FY22 dipped by 31.5 per cent to Rs.2,498 crore in October-December 2021 quarter as against Rs.3,648 crore recorded in the corresponding period of previous year.

Yes Bank's net interest income, however, declined 31 per cent YoY to Rs.1,764 crore in Q3 FY22 compared to Rs.2,560 crore recorded in the corresponding quarter of 2020-21, while it grew at 16.6 per cent on Q-o-Q basis, Yes Bank said in a stock exchange filing. 

The bank's other or non-interest income in the said quarter stood at Rs.734 crore vs ₹1,087 crore recorded in the third quarter of 2020-21.

The bank's GNPA ratio further improved to 14.7 per cent, vs 15.0 per cent last quarter, led by lower slippages at Rs.978 crore vs Rs.1,783 crore in Q2 FY22.

Yes Bank's resolution momentum has continued with ₹610 crore of cash recoveries and Rs.573 crore of upgrades during Q3 FY22. The balance sheet also stayed above Rs.3 lakh crore for first time since Sept 2019, up 6 per cent Q-o-Q.

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HDFC Bank Q3 profit rises 18%

 

Leading private sector lender HDFC Bank on January 15 clocked standalone net profit of Rs 10,342 crore for the December 2021 quarter, up 18 percent year-on-year backed by decline in bad loan provisions.The profit in corresponding quarter last fiscal was at Rs 8,758.29 crore.

Net interest income, the difference between interest earned and interest expended, climbed 13 percent to Rs 18,444 crore in Q3FY22, with net interest margin at 4.1 percent for the quarter, and healthy credit growth of 16.4 percent.Profit and net interest income grew by 17 percent and 4.3 percent on sequential basis in Q3.

HDFC Bank on January 4 had said advances for the quarter at Rs 12.6 lakh crore grew by 16.4 percent compared to year-ago period and the sequential growth was 5.1 percent. "Retail loan growth was 13.5 percent YoY (up 4.5 percent QoQ) and corporate loan book growth at 7.5 percent YoY (up 4.5 percent QoQ)."

The bank further said it registered 13.8 percent YoY growth (up 2.8 percent QoQ) in deposits at Rs 14.46 lakh crore with CASA deposits rising 24.6 percent YoY (up 3.5 percent QoQ) to Rs 6.81 lakh crore in December 2021 quarter. "CASA ratio stood at around 47 percent as of December 31, 2021, as compared to 43 percent as of December 2020 and 46.8 percent as of September 2021."

Provisions and contingencies for the quarter at Rs 2,994 crore declined 12.3 percent year-on-year, and dropped 23.7 percent over previous quarter, which comprised a specific loan loss provisions of Rs 1,820.6 crore, and general and other provisions of Rs 1,173.4 crore.

"Total provisions for the December quarter included contingent provisions of approximately Rs 900 crore," said HDFC Bank.The total credit cost ratio was at 0.94 percent for the quarter, said the bank. This was against 1.3 percent reported for September 2021 quarter and 1.25 percent for December 2020 quarter.

Asset quality improved further as the gross non-performing assets (GNPAs) as a percentage of gross advances fell 9 bps sequentially to 1.26 percent and net NPAs declined 3 bps QoQ to 0.37 percent at the end of December 2021.

"Total provisions (comprising specific, floating, contingent and general provisions) were 172 percent of the gross non-performing loans as on December 31, 2021," said HDFC Bank.The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,636 crore as of December 2021.

Pre-provision operating profit grew by 10.5 percent year-on-year to Rs 16,776 crore and other income (non-interest income) increased by 9.94 percent to Rs 8,183.55 crore for the December 2021 quarter.

The growth in other income was driven by forex & derivatives revenue, and recoveries & dividend, while fees & commissions, which contribute 62 percent to non-interest income, saw moderate growth YoY.

"Fees & commissions income at Rs 5,075.1 crore for the quarter grew by 2 percent, foreign exchange & derivatives revenue at Rs 949.5 crore increased by 68.8 percent, and miscellaneous income including recoveries & dividend at Rs 1,112.5 crore rose by 39.56 crore," said the company in its BSE filing.

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