ICICI Bank Q4 Results: Net profit jumps 30%

ICICI Bank, the second largest private bank in India, clocked nearly 30 percent year-on-year (YoY) jump in net profit to Rs 9,121.9 crore in the quarter ended March 2023.

The bank was expected to report a Rs 8,540-crore profit for the quarter ended March 2023,  according to the average of a poll of three brokerages' estimates taken  by Moneycontrol.

ICICI Bank’s net interest income (NII) rose 40.2 percent to Rs 17,667 crore from Rs 12,605 crore in the corresponding quarter last year.

According to the poll, NII was expected to have grown 38 percent year-on-year (YoY) to Rs 17,712 crore for the three months ended December.

ICICI Bank’s domestic loan book grew a healthy 20.5 percent, driven mainly by loans to business banking and retail. Business banking loans, which are credits to small informal businesses and rural businesses, grew 34.9 percent year-on-year, followed by 21 percent growth in loans to corporates. Retail loan portfolio of the bank grew by 22.7 percent year-on-year. Additionally, loans to small and medium enterprises (SME) rose by 19.2 percent from the same period in 2022.

"The business banking and SME franchise continues to grow on the back of digital offerings and platforms like InstaBIZ along with the Bank’s extensive branch network," ICICI Bank said in a release.

ICICI Bank’s provisions surged by 51.5 percent year-on-year to Rs 1,619 crore for the March quarter. The bank has a contingency provision of Rs 1,600 crore.

The bank reported a deposit growth rate of 10.9 percent during January and March, far slower than credit growth.

Net interest margin (NIM) for the bank was 4.90 percent in Q4 2023 compared to 4.00 percent in Q4 2022, and 4.65 percent in Q3 2023.

ICICI Bank’s gross bad loans as a percentage of its loan book came down to 2.81 percent from 3.60 percent a year ago. The net non-performing assets declined by 25.9 percent year-on-year and 8.8 percent sequentially to Rs 5,155 crore ($627 million) for the quarter ended March 31, 2023. The net NPA ratio declined to 0.48 percent from 0.76 percent a year ago and 0.55 percent in the previous quarter.

The management indicated that upgrades and recoveries have increased, a sign of improvement. Recoveries and upgrades were Rs 4,283 crore in the quarter ended March.

ICICI Bank's board also recommended a dividend of Rs 8 per share in line with applicable guidelines. "The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course," said the bank.

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HDFC Bank Q4 Results: Net profit rises 21% YoY , asset quality stable

HDFC Bank on April 15 reported a 21 percent YoY rise in consolidated net profit to Rs 12,594.5 crore for the quarter ended March 31. The private lender posted a 20.3 percent YoY growth in consolidated net revenue to Rs 34,552.8 crore during the quarter, against Rs 28,733.9 crore recorded during the quarter ended March 31, 2022.

Profit before tax (PBT) for the quarter ended March 31, 2023 was at Rs 15,935.5 crore. After providing Rs 3,888.1 crore for taxation, the bank earned a net profit of Rs 12,047.5 crore, an increase of 19.8 percent over the quarter ended March 31, 2022.

Net interest income (NII), or the difference between interest earned and interest expended, grew by 23.7 percent to Rs 23,351 crore from Rs 18,872 crore for the quarter ended March 31, 2023, HDFC Bank said in an exchange filing.

The average of a poll of three brokerages estimated that the profits will rise to Rs 12,181 crore. Net interest income (NII) was expected to increase 30.5 percent on-year (up 8.8 percent QoQ) to Rs 24,601.9 crore, whereas the average poll of estimates saw HDFC Bank to report 21.9 percent YoY rise in March quarter profits.

Standalone revenue grew by 21 percent to Rs 32,083.0 crore for the quarter ended March, 2023 from Rs 26,509.8 crore posted a year ago.

The lender said its total deposits showed healthy growth and were at Rs 1,883,395 crore as of March 31, 2023, an increase of nearly 21 percent over March 31, 2022. Meanwhile, total advances as of March 31, 2023 were Rs 1,600,586 crore, an increase of 16.9 percent over March 31, 2022.

“Domestic retail loans grew by 20.8 percent, commercial and rural banking loans grew by 29.8 percent and corporate and other wholesale loans grew by 12.6 percent,” HDFC Bank said in the exchange filing.

Coming to asset quality, the gross non-performing assets were at 1.12 percent of gross advances as on March 31, 2023 as against 1.23 percent as on December 31, 2022 and 1.17 percent as on March 31, 2022. While, net non-performing assets were at 0.27 percent of net advances as on March 31, 2023.

HDFC Bank’s board also recommended a dividend of Rs 19 per share for the year ended March 31, 2023, as against Rs 15.5 for the previous year. This is subject to shareholders' approval.

Further, the bank's total Capital Adequacy Ratio (CAR) as per Basel Ill guidelines was at 19.3 percent as on March 31, 2023 (18.9 percent as on March 31, 2022) as against a regulatory requirement of 11.7 percent, it added.

Provisions and contingencies for the quarter ended March 31, 2023 were Rs 2,685.4 crore as against Rs 3,312.4 crore for the quarter ended March 31, 2022.

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Bank of India(BoI) Q4 net profit rises 142.3%

Public sector lender Bank of India’s (BOI) net profit rose by 142.3 per cent to Rs 606 crore in Q4FY22, on improvement in net interest margins

It posted a net profit of Rs 250 crore in Q4FY21, the bank said in a statement.

For FY22, the net profit rose by 57.6 per cent to Rs 3,405 crore from Rs 2,160 crore in FY21.

The board recommended a dividend of Rs 2 per equity share (of face value of Rs 10) for 2021-22 subject to shareholders' nod. The bank's share was trading 2.48 per cent higher at Rs 47.6 per cent on BSE.

The Mumbai-based lender’s net interest income (NII) expanded by 35.77 per cent to Rs 3,986 crore in Q4FY22 from Rs 2,936 crore in Q4FY21. The net interest margin (NIM) improved to 2.58 per cent for Q4FY22 as against 2.01 per cent for Q4FY21.

Non-interest income declined from Rs 1,829 crore in Q4FY21 to Rs 1,587 crore in Q4FY22.

Advances increased by 11.35 per cent YoY to Rs 4.57 trillion as of March 2022. The retail, agriculture and MSME (RAM) loan portfolio increased 15.7 per cent YoY to Rs 2.16 trillion as of March 2022, BOI added.

The deposits rose by 0.12 per cent to Rs 6.27 trillion in March 2022. The share of low cost deposits – Current Account and Savings Account (CASA) – in domestic deposits stood at 45.02 per cent as at March 31, 2022, up from 41.27 per cent in March 2021.

The asset quality profile improved with Gross Non-Performing Assets (NPAs) declining to 9.98 per cent as at March 31, 2022 from 13.77 per cent in March 202. Its Net NPA stood at 2.34 per cent at end of March 2022 down from 3.35 per cent a year ago.

The provision coverage ratio (PCR) for bad loans improved to 87.76 per cent in March 2022 from 86.24 per cent a year ago.

The capital adequacy ratio of the Bank, as per Basel III, was 17.04 per cent as at March 31, 2022, up from 14.93 per cent a year ago.

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Central Bank of India reports ₹310 cr net profit in Q4FY22

 

Central Bank of India reported a standalone net profit of ₹310 crore in the fourth quarter against a net loss of ₹1,349 crore in the year-ago quarter.

The bottom line improved on the back of healthy growth in net interest income (NII), sharp decline in loan loss provisions and write-back in standard asset provisions.

The public sector bank reported a net profit of ₹1,045 crore in FY22 against a net loss of ₹888 crore in FY21.

In the reporting quarter, NII (difference between interest earned and interest expended) jumped 59 per cent year-on-year (yoy) to ₹2,416 crore (₹1,516 crore in the year-ago quarter).

Non-interest income, comprising fee-based income, trading income, recovery in written-off accounts, and others, declined about 26 per cent yoy to ₹632 crore (₹851 crore).

Provisions towards non-performing assets (NPAs) declined about 73 per cent yoy to ₹893 crore (₹3,259 crore). Write-back in standard asset provisions was at ₹293 crore.

Net interest margin improved to 3.26 per cent in the reporting quarter against 2.04 per cent in the year ago quarter.

Total advances up 7.23 per cent yoy

Gross NPAs declined to 14.84 per cent of gross advances as at March-end 2022 against 16.55 per cent as at March-end 2021. Net NPAs declined to 3.97 per cent of net NPAs against 5.77 per cent.

Total advances increased by 7.23 per cent yoy to stand at ₹1,89,712 crore as at March-end 2022. Within total advances, RAM (retail, agriculture and MSME) advances were up 5.90 per cent yoy and corporate advances rose 9.70 per cent.

Deposits were up 3.85 per cent yoy to stand at ₹3,42,692 crore as at March-end 2022. The proportion of low-cost current account, savings account (CASA) deposits increased to 50.58 per cent as at March-end 2022 against 49.24 per cent as at March-end 2021.

The Bank expects to grow its deposits and advances by 8-10 per cent and 10-12 per cent, respectively, in FY23. Further, it has set a target to bring down the percentage of global GNPAs and NNPAs to below 10 per cent and less than 3.50 per cent, respectively.

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UCO Bank Q4 results: Net profit jumps three-fold to Rs 312 cr

 

State-owned UCO Bank on Friday posted an over three-fold jump in net profit at Rs 312.18 crore for the quarter ended March 2022 as a fall in bad loans lowered the provisioning requirement.

The lender had posted a net profit of Rs 80 crore in the corresponding quarter a year ago.

Total income during the fourth quarter of 2021-22 was, however, down at Rs 4,362 crore, as against Rs 4,637 crore in the year-ago period, UCO Bank said in a regulatory filing.

For the full fiscal FY22, the bank's net profit grew more than five times to Rs 930 crore from Rs 167 crore in FY21.

Total income during the year was at Rs 18,082 crore, up from Rs 17,870 crore in the preceding fiscal.

The lender brought down its bad assets portion significantly as the gross non-performing assets (NPAs) came in at 7.89 per cent by end of March 2022, as against 9.59 per cent by end of March 2021.

Value-wise, the gross NPAs fell to Rs 10,237 crore from Rs 11,352 crore.

Similarly, the net NPAs were down at 2.70 per cent (Rs 3,316 crore) from 3.94 per cent (Rs 4,390 crore).

Thus, the provisioning for tax and other contingencies also fell to Rs 466 crore in Q4 FY22 from Rs 982 crore earlier.

Besides, the Kolkata-headquartered lender said it is holding Rs 4,707.36 crore provisions (including technical write-offs) -- 100 per cent of the requirement for accounts covered under the Insolvency and Bankruptcy Code (IBC).

On prudential framework of resolution of stressed assets, the bank holds additional provision of Rs 702.32 crore in nine accounts, it added.

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Union Bank of India Q4 Results: Firm reports 8% rise in net profit, proposes 19% dividend

  

State-owned Union Bank of India reported an 8.3% year-on-year (YoY) rise in net profit for the quarter ended March 31 backed by robust net interest income.

The net profit for the quarter stood at Rs 1,440 crore against Rs 1,330 crore in the year-ago period.

Net interest margin (NIM), a key profitability ratio, improved 37 basis points to 2.75% in the reporting quarter. Net interest income rose 25.3% at Rs 6,769 crore.

"We endeavour to maintain NIM at around 3%," managing director Rajkiran Rai said.The lender's operating profit rose 11.3% to 5530 crore. Total provision was 12.4% higher at Rs 4,081 crore.

Its asset quality improved with the gross non-performing assets ratio falling to 11.11% at the end of March as compared with 13.74% a year back. The net NPA ratio improved to 3.68% against 4.62%. The capital adequacy ratio stood at 14.52%.

The bank's advances grew 9.6% year-on-year to Rs 7.16 lakh crore while deposits rose 11.75% to Rs 10.3 lakh crore.

"Our guidance is to grow advances by 10-12% this year," Rai said. He said that a 50-100 basis point rise in rates would not impact long-term credit demand although corporates may look for alternate sources for short-term loans.

The bank has Rs 2700 crore exposure to the Future Group and Rs 2492 crore exposure to Srei. Rai said the risks are covered by 58% provision and 86% provision respectively.

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Bank of Baroda Q4 result | Net profit jumps nine-fold YoY

 

The state-owned lender Bank of Baroda on May 13 declared a nine-fold jump in its profit after tax (PAT) of Rs 7,272 crore for the year ended March 2022 as compared to a PAT of Rs 829 crore registered in the corresponding quarter of the previous fiscal.

The net interest income (difference between interest earned and interest expended) for the year rose 13 percent to Rs 32,621 crore as compared to the NII of Rs 28,809 crore for FY21.

For the quarter ended March 2022, the PAT for the bank came in at Rs 1,779 crore as compared to a loss of Rs 1,047 crore incurred during the year-ago period. On a sequential basis; however, the profit for the quarter has declined 19 percent as against Rs 2,197 crore profit logged during the previous quarter.

The lender saw its NII during the quarter under review bump up by 21 percent to Rs 8,612 crore as compared to Rs 7,107 crore reported during the same period last year. On a sequential basis, the NII was flat with a marginal growth of 0.7 percent from Rs 8,552 crore registered during the previous quarter.

Global advances during the year grew by 8.9 percent on year and by 6 percent on quarter to Rs 8,18,120 crore.

The domestic advances also grew at a healthy 6.7 percent on year and 4.6 percent sequentially. The organic retail advances grew by ~17 percent and were led by growth in home loan (11.3 percent), personal loan (108 percent), auto loan (19.5 percent) and education loan (16.7 percent). The agriculture loan portfolio grew by 10.3 percent YoY to Rs 1,09,796 crore while the organic MSME portfolio grew by 5.4 percent on year to Rs 96,863 crore.

The deposits and savings also witnessed robust growth of high single to low double digits on a YoY basis.

The operating income for the year at Rs 44,106 crore improved by 5.7 percent on year as the operating profit witnessed a growth of 5.6 percent to Rs 22,389 crore.

The net interest margin for the quarter witnessed a healthy growth of 272 bps on year to 3.08 percent.

The bank was able to improve upon its return ratios of Return on Assets (ROA) and Return on Equity (ROE).

The ROA improved to 0.60 percent for the reported year from 0.07 percent in FY21 while ROE surged by 1016 bps YoY to 11.66 percent for FY22.

The bank worked upon its asset quality and the effect was evident in the improved NPA (non-performing assets) ratios.

Gross NPA Ratio for the quarter reduced by 226 bps to 6.61 percent compared to 8.87 percent in during the year ago quarter.

The net NPA ratio for the quarter improved from 3.09 percent during the same period a year ago to 1.72 percent for the reported quarter.

The slippages for the year at 1.61 percent were well under control and the credit cost for the year stood at 1.95 percent.

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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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