SBI net profit rises 41% in Q4 ,misses estimate

 

State Bank  of India on May 13 reported a 41 percent year-on-year rise in net profit at Rs 9,113.5 crore for the quarter ended March 2022 (Q4FY22), which was below Street's estimate of Rs 9,927.6 crore.

SBI's net profit for Q4FY22 was its highest ever but it still underwhelmed the Street as expectations were on the higher side. The bank's shares slipped a little over 1 percent in response to the quarterly results.

The net profit growth was on the back of a 15.3 percent growth in net interest income which stood at Rs 31,198 crore. This too was lower marginally versus analysts' expectations of Rs 31,570 crore.

Non-interest income disappointed, slipping 27 percent year-on-year. But on a sequential basis, non-interest income jumped 37 percent while NII growth was a mere 1.6 percent.

The lender's operating profit was flat year-on-year and showed modest growth of 6.4 percent sequentially. This could be attributed to an increase in operating costs for the bank. The lender expects to reduce some of its costs in the coming quarter, chairman Dinesh Khara said in a press meet post the release of the results.

Notwithstanding the modest operating metrics, the bank's loan book grew at a decent 11 percent. Khara said that the loan book growth is broad based with both retail and corporate showing strong growth. "We should continue to see the loan growth we have seen in the past both in retail and corporate," he said. SBI's retail loan book growth continued to outpace that of its corporate loan book. Retail loans showed a growth of 15.11 percent, driven by home loans while corporate loans showed a growth of 6.3 percent from the year-ago period.

Even as the bank reported an improvement in loan growth, SBI's strong point was its asset quality in Q4FY22.

The lender continued to see sequential improvement in asset quality as the gross non-performing assets ratio declined to 3.97 percent from 4.5 percent in the previous quarter. Similarly, the bank's net NPA ratio fell to 1.02 percent in the reported quarter from 1.34 percent in the previous quarter.

What's more is that fresh slippages were just Rs 2,845 crore for the quarter, down by 12.4 percent from the year-ago period. The bank had guided for the slippage ratio to be brought down to 2 percent and Khara indicated that this would be achieved easily.

When asked about the bank's exposure to troubled accounts such as Future Group, Khara said that all stressed exposures have been adequately provided for. He refrained from detailing the extent of SBI's exposure to troubled accounts.

SBI's restructured loan accounts were roughly Rs 30,000 crore or 1.1 percent of its total loan book. The book is fully provided for, the bank said.

Given the reduced stress, the bank's provisions for the quarter fell 67 percent year-on-year, another boost for profits.

The lender's board also recommended a dividend of Rs 7.1 per share for the financial year ended March 31, 2022.

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Punjab National Bank(PNB) Q4 Net profit declines 66%

  

Punjab National Bank (PNB) reported a 66 percent decline in standalone net profit at Rs 202 crore for the fourth quarter of financial year 2021-22 on higher amounts parked towards provisioning, even as its NPA levels declined.

The PNB reported a net profit of Rs 586 crore in the corresponding quarter a year ago. The total standalone income during the January-March quarter stood at Rs 21,095 crore, down from Rs 21,386 crore in the corresponding period last year.

For the entire fiscal 2021-22, the bank's standalone net profit rose to Rs 3,456.96 crore, compared to Rs 2,021.62 crore in FY21, according to a regulatory filing by PNB to the stock exchanges.

The asset quality of the lender improved, with the gross non-performing assets (GNPAs) dropping to 11.78 percent of the gross advances as of March 2022, from 14.12 percent a year ago. PNB's net non-performing assets (NPAs) or bad loans also declined to 4.8 percent from 5.73 percent

The lender kept a higher provision for bad loans and contingencies for the January-March quarter at Rs 4,851.47 crore, compared to Rs 3,540.32 crore earlier.

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RBL Bank reports net profit of Rs 197.8 crore in Q4 as asset quality improves

 

Private sector lender RBL Bank on Thursday reported a net profit of Rs 197.8 crore for the fourth quarter ended March 31, 2022.

In the corresponding quarter last year, the bank posted a net profit of Rs 75.3 crore. CNBC-TV18 Polls had predicted a profit of Rs 218.1 crore for the quarter under review. 

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grew 24.9 percent YoY to Rs 1,131.4 crore against Rs 906 crore in the same period previous fiscal.

Gross NPA stood at 4.40 percent in the March quarter against 4.84 percent in the December quarter. Net NPA came at 1.34 percent against 1.95 percent quarter-on-quarter.

In monetary terms, gross NPA stood at Rs 2,728.4 crore against Rs 2,901.9 crore quarter-on-quarter (QoQ), whereas Net NPA came at Rs 806.6 crore against Rs 1,075.5 crore (QoQ).

During the quarter, the bank earned an operating profit of Rs 657 crore and for FY22, it was Rs 2,745 crore. The Provision Coverage Ratio improved 750bps sequentially to 70.4 percent against 62.9 percent as of December 31, 2021.

Commenting on the performance, Rajeev Ahuja, MD and CEO (interim), RBL Bank, said, \"This quarter has been one of stable business performance and we continued to improve in both profitability and asset quality

"We are entering the new fiscal with a relatively clean slate on asset quality, remain well capitalised and our business operating rhythm holds us in good stead to grow meaningfully in our chosen segments with improved profitability metrics,\" he added.

As of March 31, 2022, the bank has 502 bank branches and 1,418 business correspondent branches, of which 289 are banking outlets

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IDBI Bank Q4 net profit rises 35%

IDBI Bank on Monday posted 35 per cent rise in net profit at Rs 691 crore for the quarter ended March 2022 due to fall in bad loan provisions as NPA came down.The bank had posted a net profit of Rs 512 crore for the same quarter of 2020-21.

Total income during January-March period of 2021-22, however, was lower at Rs 5,444.08 crore from Rs 6,894.86 crore in the year-ago period, IDBI Bank said in a regulatory filing.

The bank's core interest income during the period was down at Rs 4,599.67 crore as against Rs 5,781.48 crore a year ago. Income from other sources was also lower at Rs 844 crore from Rs 1,113 crore.

The proportion of gross bad loans or non-performing assets (NPAs) of the bank fell to 19.14 per cent of gross loans at March-end 2022 as against 22.37 per cent by March 2021.

In value terms, gross NPAs stood at Rs 34,115 crore as against Rs 36,212 crore.

Likewise, net NPAs came down to 1.27 per cent (Rs 1,856 crore) from 1.97 per cent (Rs 2,519 crore).

Thus, provisions for bad loans and contingencies for the quarter were trimmed to Rs 669.23 crore as against Rs 2,393.36 crore parked aside by the bank for March quarter of 2020-21.

Of this, provisions for bad loans stood at Rs 300.61 crore, as against Rs 1,119.65 crore

For the full year, the bank's net profit grew 79 per cent to Rs 2,439 crore from Rs 1,359 crore in 2020-21.

Total income during the year was down at Rs 22,985 crore from Rs 24,497 crore mainly on account of fall in interest income as well as those from other sources.

The bank said its gross advances stood at Rs 1,78,207 crore by March 31, 2022, registering a yearly growth of 10.07 per cent.

IDBI Bank said during March quarter of previous fiscal year, it had received interest of Rs 1,313 crore on income tax refund.

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Canara Bank Q4 Net profit more than doubles

 

Canara Bank on Friday reported a 65 percent jump in its standalone net profit at Rs 1,666.22 crore for the quarter ended March 2022.

The Bengaluru-headquartered bank had posted a net profit of Rs 1,010.87 crore in the same quarter a year ago.

Total income of the bank in the January-March period of 2021-22 rose to Rs 22,323.11 crore, from Rs 21,040.63 crore in the same period of 2020-21, Canara Bank said in a regulatory filing.

On the asset quality front, the bank's gross non-performing assets (NPAs) or bad loans fell to 7.51 percent of the gross advances at the end of March 2022, as against 8.93 percent at the end of March 2021.

In value terms, the gross NPAs were worth Rs 55,651.58 crore, down from Rs 60,287.84 crore.

Net NPAs also got better at 2.65 percent (Rs 18,668.02 crore) in the quarter under review, from 3.82 percent (Rs 24,442.07 crore).

Provisions and contingencies for the quarter were higher at Rs 3,708.68 crore, as against Rs 3,652.18 crore put aside for the year-ago period. Of this, the provision for bad loans stood at Rs 2,129.73 crore for Q4FY22.

For full-year FY22, the bank reported a more than doubling of its standalone net profit at Rs 5,678.42 crore, as against Rs 2,557.58 crore in FY21.

Total income during the year grew to Rs 85,907.15 crore, from Rs 84,204.78 crore.

The board of the bank has recommended a dividend of Rs 6.50 per equity share for the year 2021-22, the lender said. It is subject to the approval of shareholders at the bank's ensuing annual general meeting.

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Bank of Maharashtra Q4 profit increase two fold

 

 Bank of Maharashtra on Thursday reported an over two-fold increase in its consolidated net profit at Rs 355 crore in the quarter ended March, helped by a fall in the bad loan proportions, thus requiring lesser provisioning.

The Pune-based lender had posted a net profit of Rs 165.23 crore in the year-ago period.

Total income of the bank, however, was down at Rs 3,948.48 crore in the January-March quarter of 2021-22, as against Rs 4,334.98 crore in the same quarter of 2020-21, Bank of Maharashtra said in a regulatory filing.

For the full year 2021-22, the bank's consolidated net profit doubled to Rs 1,151.64 crore, as against Rs 551.41 crore in 2020-21.

Total income was higher at Rs 15,672.17 crore during the year, from Rs 14,497.56 crore in the previous fiscal 2020-21.

Bank's provisioning for bad loans and contingencies for Q4FY22 came down to Rs 365.38 crore, from Rs 1,341.26 crore parked aside in the year-ago period.

On the asset quality, there was a significant improvement with Gross Non-Performing Assets (NPAs) falling to 3.94 per cent of the gross advances as of March 31, 2022 from 7.23 per cent by March end 2021.

Net NPAs or bad loans shrank to 0.97 per cent as against 2.48 per cent.

In value terms, the gross NPAs were worth Rs 5,327.21 crore, down from Rs 7,779.68 crore. Net NPAs were of the value of Rs 1,276.57 crore, down from Rs 2,544.32 crore.

The consolidated financial results of the bank include results of the holding company --Bank of Maharashtra, subsidiary company The Maharashtra Executor and Trustee Company Pvt Ltd and the associate company Maharashtra Gramin Bank.

Provision coverage ratio of the bank stood at 94.79 per cent as of March 31, 2022.

The lender said that with effect from assessment year 2021-22, it has opted for the new regime of tax under Income Tax Act, 1961.

"Consequently, during the current year, the bank has remeasured its deferred tax assets and deferred tax liabilities as on December 31, 2021 and reversed the amount of Rs 716.87 crore by debiting from profit and loss account," it said.

The board members of the bank also approved raising of Rs 5,000 crore capital through follow-on public offer, rights issue, qualified institutional placement, preferential issue or any other mode or combination thereof or through issue of Basel III compliant bonds or any other such securities.

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ICICI Bank Q4 profit surges 59.4% YoY, beats estimate

ICICI Bank on Saturday reported a standalone net profit of Rs 7,018.71 crore in the fourth quarter of the previous financial year, up 59.42 per cent from Rs 4,402.61 crore the same period a year ago.

Sequentially, the net profit rose 13.32 per cent from Rs 6,193.81 crore.

Analysts had estimated 45-65 per cent growth in year-on-year net profit for the private lender in January-March.

India’s second largest private bank‘s net interest income registered a 21 per cent on-year rise to Rs 12,605 crore in Jan-Mar from Rs 10,431 crore a year ago.

The net interest income is the difference between interest earned and interest expended. In the fourth quarter of the previous year, the private bank’s net interest margin was at 4 per cent compared to 3.84 per cent a year ago and 3.96 per cent in the quarter ended December 31.

The growth in net interest income falls short of Street estimates as analysts had projected a 22-27 per cent growth in net interest income (NII) while they estimate profit growth in the range of 46-65 per cent YoY.

For the previous financial year as a whole, ICICI Bank’s profit after tax grew 44 per cent on-year to Rs 23,339 crore.

The private bank reported an improvement in asset quality in the quarter gone by with ratios for both gross and net non-performing assets declining on a year-on-year as well as sequential basis.

As on March 31, the bank’s gross NPA ratio was at 3.60 per cent as against 4.13 per cent a quarter ago and 4.96 per cent a year ago.

The net NPA ratio was at 0.76 per cent as on March 31 versus 0.85 per cent on December 31 and 1.14 per cent a year ago.

As on March 31, the bank’s Basel III Capital Adequacy Ratio stood at 19.16 per cent as against 17.91 per cent a quarter ago and 19.12 per cent a year ago.

Provision coverage ratio on non-performing assets was 79.2 per cent at March 31, 2022.

“Recoveries and upgrades of NPAs, excluding write-offs and sale increased to 4,693 crore (US$ 619 million) in Q4-2022 from 4,209 crore (US$ 555 million) in Q3-2022. The gross NPAs written-off in Q4-2022 were Rs 2,644 crore (US$ 349 million),” the bank said in an exchange filing.

As on March 31, ICICI Bank’s total advances registered a growth of 17 per cent year-on-year to Rs 859,020 crore. Sequentially, the

growth in domestic advances was 6 per cent.

For the period under review, ICICI Bank’s retail loan portfolio excluding rural loans grew 20 per cent on-year and 6 per cent sequentially, comprising 52.8 per cent of the total loan portfolio as on March 31.

The business banking portfolio grew by 43 per cent year-on-year and 10 per cent sequentially as on March 31, the bank informed exchanges.

The small and medium enterprises business, which comprises borrowers with a turnover of less than Rs 250 crore, grew 34 per cent on-year and 11 per cent quarter-on-quarter.

The SME business, comprising borrowers with a turnover of less than Rs 250 crore (US$ 33 million), grew by 34% year-on-year and 11% sequentially at March 31, 2022.

Growth in the domestic wholesale banking portfolio was 10 per cent year-on-year at March 31, 2022.

As on March 31, ICICI Bank’s total deposits grew 14 per cent year-on-year to Rs 1,064,572 crore. The sequential growth in deposits was 5 per cent.

Average current account savings account deposits increased 23 per cent on-year in January-March.

Total term deposits increased by 9 per cent year-on-year to Rs 546,135 crore (US$ 72.1 billion) at March 31, 2022.

For the quarter under review, ICICI Bank’s provisions excluding provision for tax declined by a large 63 per cent on-year to Rs 1,069

crore from Rs 2,883 crore the same time a year ago.

The provisions for the fourth quarter of the previous financial year included contingency provision of Rs 1,025 crore made on a

prudent basis, the bank informed exchanges.

“The bank continues to carry Covid-19 related provision of Rs 6,425 crore (US$ 848 million) at March 31, 2022 as contingency provisions at March 31, 2022," the bank said.

“Currently, while the number of new Covid-19 cases have reduced significantly and the Government of India has withdrawn most of the Covid-19 related restrictions, the future trajectory of the pandemic may have an impact on the results of the Bank and the Group.”

In the last quarter of 2021-22 (Apr-Mar), ICICI Bank’s profit before tax registered a growth of 63 per cent year-on-year to Rs 9,224

crore from Rs 5,657 crore the same time a year ago.

The bank’s board has recommended a dividend of Rs 5 per share and the record/book closure dates will be announced in due course, according to the exchange filing.

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Bandhan Bank Q4 update: Total advances up 16%, deposits rise 24%

 

Private sector lender Bandhan Bank on Tuesday said its loans and advances grew 16 per cent year-on-year (YoY) to Rs 1,01,359 crore at the end of January-March quarter of financial year 2021-22.

 

Sequentially, loans and advances rose 15 per cent from Rs 87,998 crore as of December 31, 2021.

 

Total deposits grew 24 per cent YoY and 14 per cent quarter-on-quarter (QoQ) to Rs 96,331 crore, while current account and saving account (CASA) deposits rose 18 per cent YoY and 4 per cent QoQ to Rs 40,072 crore.

 

However, CASA ratio declined to 41.6 per cent from 43.4 per cent a year ago and 45.6 per cent at the end of preceding December quarter.

 

The share of retail to total deposits stood at 77 per cent as against 79 per cent a year ago and 85 per cent a quarter ago.

 

Bandhan Bank said its collection efficiency was at about 96 per cent during March 2022, while liquidity coverage ratio (LCR) was at about 129 per cent as of March 31, 2022.

 

The bank had reported a 35.7 per cent YoY increase in its net profit at Rs 859 crore for October-December quarter, while its net interest income (NII) grew 2.6 per cent to Rs 2,124.7 crore.

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HDFC Bank Q4 net profit jumps 23% YoY

HDFC Bank, the largest private sector lender in India, on April 16 reported a 23 percent year-on-year (YoY) growth in standalone net profit at Rs 10,055.2 crore for the quarter ended March 2022 as bad loans provisions declined 29 percent, with further improvement in asset quality. A year back, the standalone profit stood at Rs 8,186.51 crore.

Net interest income (NII), the difference between interest earned and interest expended, increased 10.2 percent YoY to Rs 18,872.7 crore in Q4, with credit growth of nearly 21 percent and 16.8 percent growth in deposits YoY. "Core net interest margin was at 4 percent on total assets, and 4.2 percent based on interest-earning assets, said the bank in its BSE filing on April 16.

HDFC Bank further said its advances grew by 20.8 percent YoY to Rs 13.69 lakh crore in the fourth quarter of FY22, with growth in retail loan book at 15 percent, commercial and rural banking loans at 30.5 percent, and corporate and other wholesale loans at 17.5 percent over the corresponding period last fiscal.

The bank recorded a 16.8 percent YoY growth in deposits at Rs 15.59 lakh crore as of March 2022, with retail deposits rising 18.5 percent, and wholesale deposits scaling 10 percent on-year.

The share of Current Account Savings Accounts (CASA) deposits stood at Rs 7.51 lakh crore as of March 2022, a growth of around 22 percent YoY, while the ratio of CASA deposits increased to 48 percent in the March 2022 quarter, compared to 46.1 percent in the corresponding period last fiscal, the bank said.

Provisions and contingencies fell sharply to Rs 3,312.4 crore at the end of the March 2022 quarter, down 29.4 percent compared to the year-ago period, but the same increased 10.6 percent on a sequential basis.

Total provisions for March 2022 quarter included contingent provisions of approximately Rs 1,000 crore, said the bank, adding the floating provisions were Rs 1,451 crore and contingent provisions at Rs 9,685 crore as of March 2022.

Asset quality improved further with the gross non-performing assets (as a percentage of gross advances) falling 9 bps QoQ to 1.17 percent and net NPAs (as a percentage of net advances) declining 5 bps sequentially to 0.32 percent at the end of the March quarter.

Non-interest income (or other income) grew by around half a percent to Rs 7,637 crore in Q4FY22 as there was a loss on sale or revaluation of investments during the quarter at Rs 40.3 crore (against income of Rs 655.1 crore in the same period last year, said the bank.

The fees and commissions segment, which contributed 74 percent to other income, grew by 12 percent to Rs 5,630.3 crore in the same period.

Pre-provision operating profit (PPoP) at Rs 16,357 crore registered a 5.3 percent YoY growth compared to the corresponding quarter of last fiscal as operating expenses increased by 10.6 percent YoY.

The bank said its total capital adequacy ratio (CAR) stood at 18.9 percent as of March 2022, up from 18.8 percent as of the same period last year, with Tier-I CAR at 17.9 percent increasing by 30 bps YoY.

During the quarter ended March 2022, the bank purchased loans aggregating Rs 8,117 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC).

For the full financial year 2021-22, the bank reported a profit of Rs 36,961.3 crore, a growth of 18.8 percent over the previous year, and net interest income at Rs 72,009.6 crore - up 11 percent during the same period.

On April 4 this year, the board of directors approved the merger of HDFC with HDFC Bank. The combined entity in terms of market capitalisation would be the third-largest in India, which is subject to several requisite approvals, including that from the Reserve Bank of India, Competition Commission of India, National Housing Bank, and Insurance Regulatory and Development Authority of India. HDFC shareholders will get 42 equity shares of HDFC Bank for every 25 shares held by them.

The private sector lender added 563 branches during the March quarter, taking the network to 6,342 units as of the end of FY22.

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Indian Overseas Bank(IOB) Q4 profit jump over two times

 

State-owned Indian Overseas Bank (IOB) on Monday reported a jump of over two times in its net profit at Rs 349.77 crore in the last quarter of the fiscal ended March 2021.

The bank had posted a net profit of Rs 143.79 crore in the same period a year ago.

Total income during Q4FY21 rose to Rs 6,073.80 crore as against Rs 5,484.06 crore in Q4FY20, IOB said in a regulatory filing.

Provisions for bad loans and contingencies for the reported quarter increased to Rs 1,380.46 crore as against Rs 1,060.38 crore parked aside in the corresponding period a year earlier.

For the full year 2020-21, the bank reported a net profit of Rs 831.47 crore. There was a net loss of Rs 8,527.40 crore in 2019-20.

Total income during the year increased to Rs 22,524.55 crore from Rs 20,712.48 crore in the previous fiscal year.

Bank's asset quality showed improvement with the gross non-performing assets (NPAs) falling to 11.69 per cent of the gross advances as of March 31, 2021 from 14.78 per cent by year ago same period.

In value terms, the gross NPAs or bad loans were of the order of Rs 16,323.18 crore, down from Rs 19,912.70 crore.

Net NPAs fell to 3.58 per cent (Rs 4,577.59 crore) from 5.44 per cent (Rs 6,602.80 crore).

The bank said its board of directors has approved the capital plan for 2021-22 under which it will issue equity shares up to a maximum extent of 125 crore shares by way of follow on public offer/rights issue.

The issue may be with or without participation from the government or to qualified institutional buyers (QIBs), the lender said.

It may be also on a preferential basis to LIC and other insurance companies or mutual funds/QIBs. The issuance of shares is subject to shareholders approval, IOB said.

Besides, the board also approved to raise tier II capital by issuing Basel III compliant bonds up to Rs 1,000 crore in one or more tranches. The issue may be through a private placement or to retail segment by public issue, either domestically or overseas, it added.

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Union Bank of India posts net profit in Q4, asset quality improves

 

Union Bank of India posted a standalone net profit of ₹1,329.77 crore for the quarter ended March 31, 2021. The state-run lender has reported a loss of ₹2,503.18 crore in the corresponding period of previous fiscal.

Union Bank of India clarified that the financial results for fiscal FY21 and its fourth quarter are not comparable to corresponding figures in the year-ago period as "working results for the quarter/year ended March 31, 2021, include operations of erstwhile Andhra Bank and erstwhile Corporation Bank". The central government had approved the scheme of amalgamation of the three banks on March 4, 2020, which came into effect on April 1, 2020.

"Accordingly, the difference of ₹1,309.60 crore between the net assets of amalgamating banks and the amount of shares issued to shareholders of the amalgamating banks has been recognised as Amalgamation Reserve in the opening balance sheet as on April 1, 2020. The bank has considered this amount under CET I for the purpose of calculation of CRAR," Union Bank of India said in a regulatory filing.

Total income during the quarter under review was ₹20,025.99 crore as opposed to ₹11,306.99 crore in the year-ago period. Net interest income for Q4 FY21 stood at ₹5,402.86 crore, against ₹2,878.11 crore in Q4 FY20.

Operating profit for the March quarter of FY21 was recorded at ₹5,179.87 crore, as opposed to ₹2,652.64 crore in the same period of FY20.

The bank saw its asset quality improve, with gross non-performing assets (NPAs) decline to 13.74 per cent of the gross advances as of March 31, 2021, as against 14.15 per cent by the end of corresponding period previous fiscal. Net NPAs or bad loans came down to 4.62 per cent from 5.49 per cent.

The bank said it has not classified the borrower account of Delhi Airport Metro Express (DAMEPL) as NPA in accordance to a Supreme Court order. However, following RBI directives dated June 21, 2019, the bank has not treated ₹94.9 crore as NPA against DAMEPL and made the provisions to the tune of ₹43.31 crore in accordance with the Income Recognition and Asset Classification and Provisioning (IRAC) norms, notionally treating the account as NPA.

"Further, the bank also has exposure of ₹3,269.09 crore with two borrower accounts belonging to another business group. In terms of NCLT, Kolkata bench order dated 21 October 2020, the bank has not declared these accounts as NPA and maintained status quo until further orders. As a prudence, the bank has made a provision of ₹549.45 crore pending final decision," it added.

On the impact of Covid-19 pandemic, Union Bank of India said, "Though the situation continues to remain uncertain, the bank is continuously monitoring the situation and taking all possible measures to ensure continuance of full-fledged banking operations. The management believes that there would not be any significant impact on bank's performance in future and going concern assumptions."

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Central Bank of India Q4 results: Lender's net loss narrows

 

State-owned Central Bank of India on Monday reported narrowing of its net loss to Rs 1,349.21 crore on a standalone basis in the last quarter of the fiscal ended March 2021. The bank had posted a net loss of Rs 1,529.07 crore in the same quarter of the preceding fiscal year. Sequentially, there was a net profit of Rs 165.41 crore in the December quarter of FY21.

Net profit (standalone) for the entire fiscal 2020-21 was down by 20.84 per cent to Rs 887.58 crore as against Rs 1,121.35 crore in 2019-20, Central Bank of India said in a regulatory filing.

Income (standalone) during Q4FY21 also fell to Rs 5,779.84 crore from Rs 6723.73 crore in Q4FY20.

For the full year, the income was down at Rs 25,897.44 crore as against Rs 27,199.29 crore in FY20, the bank said.

The asset quality of the state-owned lender showed improvement with the gross non-performing assets (NPAs) falling to 16.55 per cent of the gross advances by end of March 2021 as against 18.92 per cent by year-ago same period.

In absolute value, gross NPAs fell to Rs 29,276.96 crore from Rs 32,589.08 crore.

Net NPAs were also trimmed to 5.77 per cent (Rs 9,036.46 crore) from 7.63 per cent (Rs 11,534.46 crore).

Provisions for bad loans and contingencies during the reported quarter rose to Rs 3,130.33 crore from Rs 2,178.33 crore put aside for the year-ago quarter.

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Punjab National Bank posts net profit in Q4; NII rises 48%

 

State-owned lender Punjab National Bank (PNB) on Friday reported standalone net profit of Rs 586 crore for the quarter ended March 31, 2020 (Q4FY21). The lender had posted a profit of Rs 506 crore in the previous quarter (Q3FY21), and a standalone loss of Rs 697 crore during the corresponding period last year (Q4FY20).

On a sequential basis, the net profit rose 16 per cent.

The Delhi-based lender's net interest income -- the difference between interest earned through lending and interest paid to depositors -- rose 48.3 per cent to Rs 6,938 crore for the period under review. It was Rs 4,677 crore in the same quarter a year earlier.

The bank’s gross non-performing assets (NPAs) increased to 14.12 per cent in the March quarter, compared with 12.99 per cent in the previous quarter. Meanwhile, its net non-performing assets (NPAs) stood at 5.73 per cent.

The total income of the bank during the quarter stood at Rs 22,531 crore as compared with Rs 16,388 crore in the year-ago period.

The bank made provisions for NPAs to the tune of Rs 5,293 crore for the period under review. This is higher by 15 per cent as compared to the provisions of Rs 4,618 crore in the same period, a year ago

As of March 31, 2021, the Capital Adequacy Ratio (CAR) of the lender stood at 14.32 per cent.

"The current coronavirus situation continues to be uncertain and the Bank is evaluating the impact on an ongoing basis. The extent to which the Covid-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive," the lender said in a filing.

The lender's deposits at the end of March quarter stood at Rs 11 trillion as compared with Rs 7 trillion in the year-ago period.

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Bank of India posts Rs 250 crore profit in Q4

State-owned Bank of India has on Friday reported Rs 250 crore profit for the March quarter compared to a loss of Rs 3571 crore in the year ago period, thanks to lower provisions against bad loans.

The bank's net interest margin, a key profitability parameter, has fallen to 2.01% for the quarter as against 2.90%.

Operating profit dipped 21% at Rs 2094 crore from Rs 2653 crore while interest income fell 9% at Rs 9327 crore over the year-ago period's Rs 10,528 crore, the bank said in a regulatory filing.

About 4.5 times lower provisions including those to cover bad loans saved the day for the bank. The bank made provisions of Rs 1831 crore during the quarter against Rs 8142 crore last time with improvement in asset quality over the one year period. Gross non-performing assets ratio stood at 13.77% at the end of March, compared with 14.78% a year back. The ratio however rose from December 2020's 13.25%.

Provisions coverage ratio however remained healthy at 86.24% compared with 83.75% over the same period.

The bank's advances shrunk 1.5% to Rs 4.1 lakh crore as of end of March, on account of contraction in overseas lending to Rs 48,075 crore from Rs 58,852 crore while dometic lending grew a modest 1.35 to Rs 3.6 lakh crore. The muted credit growth is largely due to 15% fall in corporate loan demand.

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Bank of Baroda(BoB) Q4 reports net loss in Q4

 

Bank of Baroda today reported a net loss of Rs 1,047 crore due to a sharp rise in provisions for bad loans in the quarter and deterioration in asset quality on a reported basis.

Analysts had expected the state-owned bank to report a net profit of Rs 1,042.6 crore for the reported quarter.

The bank’s provisions for bad loans rose 44 per cent on-year during the quarter to Rs 4,593 crore. At the same time, the lender’s gross non-performing assets ratio stood at 8.87 as against 8.48 a quarter ago on a reported basis. The net NPA ratio was at 3.09 per cent as compared to 2.39 per cent reported in the previous quarter.

The lender’s bottomline was also affected by a sharp rise in tax expense to Rs 3,726 crore as against a tax write-back of Rs 2,230 crore in the year-ago quarter.

The public sector lender’s net interest income in the quarter rose 4.5 per cent on-year to Rs 7,107 crore. The non-interest bearing business had a stellar quarter as income rose 71 per cent on-year to Rs 4,848 crore.

Bank of Baroda’s pre-provision operating profit rose 27.3 per cent on-year to Rs 6,266 crore for the quarter ended March. Net interest margin of the lender deteriorated on-year by three basis points to 2.73 per cent.

The lender’s loan book grew 4.9 per cent on-year during the quarter to Rs 6.4 lakh crore, while deposits climbed 6.2 per cent to Rs 8.6 lakh crore. However, the retail loan portfolio showed firm growth of 14.4 per cent on-year to Rs 1.2 lakh crore

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Karur Vysya Bank Q4 net profit rises 23%

Private sector Karur Vysya Bank on Friday posted nearly 23 per cent rise in its net profit at Rs 104 crore in the last quarter of the fiscal ended March 2021, on account of good growth in retail loan portfolio as well as gold loan.Provisions for bad loans and contingencies too fell, which helped in profit numbers.

The bank had reported a net profit of Rs 84 crore during the same period of the preceding fiscal year FY20.

Total income during Q4 FY21, however, fell to Rs 1,565.78 crore from Rs 1,803.15 crore in the year-ago same quarter.For the entire fiscal year 2020-21, its net profit jumped by about 53 per cent to Rs 359 crore from Rs 235 crore in 2019-20, Karur Vysya Bank said in a regulatory filing.Full-year (2020-21) income was also down at Rs 6,527.07 crore, as against Rs 7,144.60 crore in FY20.

Bank''s total business grew by nearly 8 per cent to Rs 1.16 lakh crore as of March 31, 2021. The lender said credit growth during the year was higher at 8.87 per cent and gross advances reached Rs 52,820 crore.

"Credit growth resulted from improved offtake in retail and business segment as well as higher growth witnessed in the jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels," it said in a release.

Jewel loan portfolio grew by 39 per cent during the year and stands at Rs 12,852 crore at end of March 2021.On asset side, the bank registered decline in gross non-performing assets (NPAs) at 7.85 per cent of the gross loans by end of FY21 from 8.68 per cent by FY20. In value terms, the gross NPAs fell to Rs 4,143 crore from Rs 4,213 crore.

Net NPAs or bad loans improved to 3.41 per cent (Rs 1,719 crore) from 3.92 per cent (Rs 1,809 crore), backed by consistent follow-up and recovery measures, the bank said.Provisions for bad loans and contingencies for the reported quarter fell to 71.45 crore from Rs 429.27 crore parked aside for the year-ago period.

The board of directors of the bank has recommended dividend of Rs 0.50 per equity share for the financial year ended March 31, 2021, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the bank, it said.

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Indian Bank reports huge net profit in Q4

 

Indian Bank on Friday reported a net profit of Rs 1,708.85 crore in the March-ended quarter. The lender had posted a net loss of Rs 217.74 crore in the same quarter of the preceding financial year 2019-20.

Sequentially, the bank had posted a net profit of Rs 514.29 crore in the December quarter of the financial year 2020-21.

The bank said figures of March 31, 2020, are related to standalone Indian Bank financing for the pre-amalgamation period, hence not comparable with the post amalgamation financials of December 2020 and March 2021.

The erstwhile Allahabad Bank was amalgamated into Indian bank with effect from April 1, 2020.

Total income during the January-March quarter of 2020-21 increased to Rs 10,647.87 crore. It was Rs 6,334.37 crore in the same period of 2019-20, Indian Bank said in a regulatory filing.

For the full year of the financial year 2020-21, the net profit of the bank was recorded at Rs 3,004.68 crore. In the previous financial year, the bank had a total income of Rs 753.36 crore. The total income for the year was Rs 45,185.04 crore. Income in the preceding fiscal was at Rs 24,717.43 crore.

On the asset quality front, the bank's gross non-performing assets (NPAs) or the bad loans stood at 9.85 per cent of the gross advances by end of March 31, 2021. It was 6.87 per cent by March 2020.

In value terms, the gross NPAs of the bank stood at Rs 38,455.35 crore as against Rs 14,150.84 crore.

Net NPAs too rose at 3.37 per cent (Rs 12,271.13 crore) from 3.13 per cent (Rs 6,184.24 crore).

The bank made provisions for bad loans and contingencies worth Rs 1,752.48 crore for the March 2021 quarter. In the year-ago period, it was Rs 1,891.86 crore.

The board of directors of the bank has recommended a dividend of Rs 2 per equity share for the financial year 2020-21, the bank said.

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City Union Bank Q4 net profit reports at Rs 111 crore

Private sector City Union Bank has reported net profit at Rs 111.18 crore for the quarter ending March 31, 2021. The Tamil Nadu-based bank had reported a net loss at Rs 95.29 crore during corresponding quarter previous year, the City Union Bank said in a BSE filing.

For the year ending March 31, 2021, net profits of the bank grew to Rs 592.82 crore from Rs 476.31 crore.

Total income for the quarter ending March 31, 2021 was at Rs 1,121.43 crore as compared to Rs 1,220.98 crore registered in the same quarter last year.

For the year ending March 31, 2021, total income stood at Rs 4,839.45 crore as against Rs 4,848.54 crore during corresponding period last year.

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Karnataka Bank Q4 net profit up 15%

Private sector lender Karnataka Bank on Wednesday posted an all time high annual net profit of Rs. 483 crore for the financial year 2020-21, registering a 12% growth over the previous year’s revenues.

The net profit for the fourth quarter ended March 2021 is Rs. 31.36 crore, a 15% jump over the previous year. The bank’s board also recommended a dividend of 18%.

“This turned out to be the best result under the unprecedented tough conditions triggered by Covid-19 pandemic,” Bank’s managing director Mahabaleshwara MS said in a press release.

The business turnover of the bank was at Rs. 1,27,348 crore as on March 31, 2021. The deposits stood at Rs. 75,655 crore and advances at Rs. 51,694 crore. The CASA deposits grew 15% and reached an all time high of 31% of total deposits as on March 31, 2021.

Mahabaleshwara said vaccinations coupled with other measures including restructuring by the RBI will help needy borrowers and the banking sector overcome the challenges posed by the pandemic.

The bank also announced the appointment of Balakrishna Alse S, a former executive director of Oriental Bank of Commerce, as an additional director on its board.

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Uco Bank Q4 net profit jumps nearly five-fold

 

State-owned Uco Bank reported nearly five-fold jump in net profit at Rs 80 crore for the March quarter largely riding on treasury gains. Net profit was Rs 17 crore in the year ago period.

The bank also made Rs 167 crore net profit for the full financial year after continuous loss in the previous five financial years.

Operating profit grew 26% at Rs 1533 crore as against Rs 1217 crore over the same period. Its net interest income rose 12.6% at Rs 1413 crore against Rs 1255 crore while other income including earnings from treasury rose 78% at Rs 1370 crore from Rs 769 crore over the same period.

The bank's board approved a plan to raise up to Rs 3,000 crore by selling shares to help the lender create a capital buffer as suggested by the Reserve Bank of India to ward off the pandemic-led stress. Its capital adequacy ratio stood at 13.74% with core capital at 11.14% at the end of March.

Uco, which is 94.4% owned by the government, said that it would contemplate a follow-on public offer (FPO), qualified institutional placement or preferential issue for capital raising.

The bank's advances grew by 3% to Rs Rs 1.18 lakh crore at the end of March. Gross non-performing assets improved to 9.59% from 16.77% a year back with net NPA falling to 3.94% from 5.45%. The provision coverage ratio rose to 88.4% from 85.5% earlier

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