Union Bank of India's Q4 net rises 93.3% on healthy growth in NII

Public sector lender Union Bank of India's net profit rose by 93.3 per cent year-on-year (YoY) to Rs 2,782 crore for the quarter ended March 2023 (Q4FY23) on healthy growth in Net Interest Income (NII) and non-interest income.

Sequentially, the profit rose from Rs 2,244 crore in Q3FY23.

For FY23, the bank's net profit grew 61.18 per cent to Rs 8,433 crore against Rs 5,232 crore in FY22.

The board of directors has recommended a dividend of Rs 3.0 per share (Rs 10 each) for FY23, subject to shareholders' approval, the Mumbai-based lender informed BSE.

Its capital adequacy ratio stood at 16.04 per cent with Common Equity Tier of 12.36 per cent at the end of March.

Union Bank’s NII, interest revenues minus interest expenses, grew by 21.9 per cent YoY to Rs 8,251 crore in Q4FY23 as against Rs 6,769 crore for Q4FY22. The net interest margin improved to 2.98 per cent in Q4FY23 from 2.75 per cent in Q4FY22.  

The non-interest income rose by 62.48 per cent YoY to Rs 5,269 crore in Q4FY23, the bank said a statement.

Its advances grew by 13.05 per cent YoY basis to Rs 8.09 trillion in FY23. Out of it, RAM advances – Retail, Agriculture and MSME (RAM)- increased at a higher pace of 14.94 per cent to Rs 4.36 trillion at the end of March 2023.

Total deposits increased by 8.26 per cent YoY to Rs 11.17 trillion. The share of low-cost deposits — current account and saving accounts (CASA) — stood at 35.62 per cent at the end of March 2023, down marginally from 36.54 per cent a year ago.

The asset quality profile improved with gross non-performing assets declining to 7.53 per cent in March from 11.11 per cent in the same month in 2022. The net NPAs also declined 1.7 per cent in March 2023 from 3.68 per cent a year ago. 

The provision coverage ratio improved to 90.34 per cent in March 2023 from 83.61 per cent a year ago.

Read More

Bank of India(BoI) Q4 net more than doubles on improvement in NII

Public sector lender Bank of India’s (BoI) net profit more than doubled year-on-year (YoY) to Rs 1,350 crore for the quarter ended March 2023 (Q4FY23) on improvement in net interest income (NII). However, sequentially, the profit rose from Rs 1,151 crore in Q3FY23. For FY23, the bank's net profit grew 18.15 per cent to Rs 4,023 crore against Rs 3,405 crore in FY22.

The board of directors declared a dividend of Rs 2.0 per share (Rs 10 each) for FY23, subject to shareholders' approval, the bank informed BSE.

BOI's capital adequacy ratio stood at 16.28 per cent with the Common Equity Tier of 13.6 per cent at the end of March.

The bank's net interest income (NII), interest revenues minus interest expenses, grew by 37.77 per cent YoY to Rs 5,493 crore in Q4FY23 as against Rs 3,987 crore for Q4FY22. The net interest margin (NIM) improved to 3.15 per cent in Q4FY23 from 2.56 per cent in Q4FY22.

The bank in a statement said that the advances expanded by 12.87 per cent YoY basis to Rs 5.15 trillion in FY23. Total deposits increased by 6.64 per cent YoY to Rs 6.69 trillion. The share of low-cost deposits — current account and saving accounts (CASA) — stood at 44.73 per cent at the end of March 2023, down from 45.02 per cent a year ago, according to an analyst presentation.

The asset quality profile improved with gross non-performing assets (NPA) declining to 7.31 per cent in March 2023 from 9.98 per cent in the same month in 2022. The net NPAs also declined 1.66 per cent in March 2023 from 2.34 per cent a year ago. 

The provision coverage ratio (PCR) improved to 89.68 per cent in March 2023 from  87.76 per cent a year ago.

Read More

Uco bank posted highest ever annual profit

Public sector UCO Bank on Tuesday reported an 86.2 per cent rise in net profit to Rs 581.24 crore for the March 2023 quarter on the back of a reduction in bad loans. The bank reported a profit of Rs 312.18 crore in the January-March quarter of 2021-22.

UCO Bank has posted its highest-ever annual net profit of Rs 1,862.34 crore in 2022-23 against Rs 929.76 crore in the preceding fiscal, registering a nearly 100 per cent year-on-year growth, the Kolkata headquartered lender said in a stock exchange filing.

The net interest income (NII) at Rs 7,343.13 crore during the year too was the bank's highest ever.

The bank's gross non-performing assets (NPA) in the fourth quarter declined to 4.78 per cent from 7.89 per cent a year ago.

Similarly, the net NPA too declined to 1.29 per cent in the January-March 2022-23 quarter from 2.7 per cent.

UCO Bank's capital adequacy ratio at 16.51 per cent at March-end 2023 increased by 277 basis points from 13.74 per cent a year ago

Read More

Punjab & Sind Bank reports 32% growth in Q4 PAT

 

Punjab & Sind Bank showed a mixed performance in the fourth quarter of FY23. The lender posted double-digit growth of 32.03% YoY and 22.43% QoQ in net profit to Rs.456.99 crore in Q4FY23. On the contrary, the bank's net interest income (NII) dipped by 1.97% YoY and sharply by 15.05% QoQ to Rs.683.78 crore in the quarter.

The growth in net profit was alongside narrowing in provision losses.

In Q4FY23, the bank's provision and contingencies loss narrowed steeply to Rs.57.12 crore as against Rs.131.56 crore in Q4FY22 and ₹207.46 crore in Q3FY23.

Gross non-performing assets (GNPA) came in at 6.97% in Q4FY23 as against 12.17% in Q4FY22 and 8.36% in Q3FY23. Net NPA stood at 1.84% in the quarter under review, compared to 2.74% in Q4FY22 and 2.02% in Q3FY23.

In its financial report, Punjab & Sind Bank revealed that it surpasses the targets in Priority Sector Advance which stands at 54.99% and Agriculture Advance at 20.67% of ANBC, as on March 2023, against the regulatory target of 40% and 18% respectively.

Also, the bank's credit to small and marginal farmers stands at 11.06% of ANBC, against the regulatory target of 9.50%. While credit to weaker sections stood at 12.68% of ANBC, against the regulatory target of 11.50%.

Additionally, credit to micro enterprises stands at 14.31 % of ANBC as of March 31, 2023, against the regulatory target of 7.50%.

Further, as of March 2023, the bank has 19.30 lakh PMJDY accounts with a balance of deposits of Rs.558 crore.

As of March 31, 2023, the bank has 1537 branches, out of which 572 are Rural, 281 Semi-Urban, 362 Urban, and 322 Metro along with 835 ATMs, and 357 Business Correspondents.

Recently, the lender opened 25 new branches in PAN India --- taking the total number of branches to 1553 as of date.

In a meeting held on Tuesday, the bank's board members recommended a dividend of Rs.0.48 per share or 4.80% having a face value of Rs.10 each to shareholders.

Read More

IDBI Bank Q4 results: Net profit rises 64%

Private sector

lender IDBI Bank’s net profit for the March 2023 quarter rose by 64 per cent year-on-year (Y-o-Y) to Rs 1,133 crore on the back of improved net interest margins. The lender recorded an all-time high of net profit of Rs 3,645 crore, which is 49 per cent more than Rs 2,439 crore for FY22. In its regulatory filing, the bank said the profit sequentially increased by 22.2 per cent from Rs 927 crore in December 2022 (Q3FY23). For FY23, the net profit.

Besides, its Net interest income (NII) increased by 35 per cent to Rs 3,280 crore in Q4FY23, as against Rs 2,420 crore in the same quarter last year. Sequentially, NII is up by 12 per cent from Rs 2,925 crore registered in December quarter of FY23.

Net interest margins improved to 5.01 per cent for Q4 FY23 as compared to 3.97 per cent for Q4FY22, and sequentially, 4.59 per cent in Q3 FY23.

IDBI Bank’s board of directors declared a dividend of 10 per cent (Rs one) per share of Rs 10 each for the financial year ended March 2023 (FY23), subject to shareholder’s approval, the bank said in a filing with BSE. It has proposed a dividend after eight years, the bank officials said.  

The bank reported that its provisions steeply rose up to Rs 1,292 crore in the March quarter as compared to Rs 823 crore in Q4 FY22 and Rs 1,124 crore in the December quarter of FY23. Provision Coverage ratio expanded to 97.94 per cent in the quarter under review.

In term of bad loans, the bank said its gross NPA dipped drastically to 6.38 per cent in Q4 FY23 compared to 20.16 per cent in Q4 FY22. Net NPA was below the 1 per cent, to 0.92 per cent in the March 2023 quarter as compared to 1.36 per cent in Q4 of FY22.

Earlier this month it was reported that the Reserve Bank of India (RBI) has been looking into at least five potential bidders keen on picking up a majority stake in IDBI Bank Ltd. Kotak Mahindra Bank, Prem Watsa-backed CSB Bank and Emirates NBD are some of the names that have submitted expressions of interest, two sources said.

The divestment of IDBI Bank is the first major divestment exercise across state-owned banks as part of Centre’s broader privatisation plan and could fetch it $3.66 billion at the current market valuation. The Union government and LIC together own 94.71 per cent stake in the bank. The government owns 45.48 per cent of IDBI Bank and is planning to divest a 30.48 per cent stake in the bank.

Whereas insurance major Life Insurance Corp of India (LIC) plans to see a 30.24 per cent of its stake from its holding of 49.24 per cent in the bank.

Expressions of interest - the first step in the stake sale process - closed in January, the report said.

The potential bidders have since begun due diligence on the bank, sources said, who added financial bids were likely to be placed later this year.

The RBI is also carrying out a "fit and proper evaluation", including extensive background and financial checks on the potential buyers, a crucial step before an investor is allowed to pick up a stake in a local bank.

Read More

IDFC FIRST Bank reports highest-ever profit in FY23

IDFC FIRST Bank has announced its audited financial results for the quarter and financial year that ended on March 31, 2023. During the financial year, the bank recorded a net profit of Rs. 2,437 crore, as compared to Rs. 145 crore in the previous year. The bank's quarterly net profit grew 134 per cent YoY, from Rs. 343 crore in Q4-FY22 to Rs. 803 crore in Q4-FY23. The strong growth in core operating income was the major driving force behind this increase.

“We have registered our highest ever quarterly profit of Rs. 803 crores in Q4 FY 23 and highest ever yearly profit of Rs. 2,437 crores in FY23,” Managing Director and CEO V Vaidyanathan said.

The bank had trading gains of Rs. 216 crore in Q4-FY23, and it utilized Rs. 79 crore to increase the provision coverage ratio. The net profit of the bank would have been Rs. 701 crore for Q4-FY23, if adjusted for these one-time items. The Core ROE on this basis would have been 12.3 per cent, which increased from 6.67 per cent for Q4-FY22.

The net interest income (NII) for the year grew 30 per cent YoY, from Rs. 9,706 crore in FY22 to Rs. 12,635 crore in FY23. The fee and other income for the year grew by 54 per cent YoY, from Rs. 2,691 crore in FY22 to Rs. 4,142 crore in FY23. Retail fees constituted 91 per cent of the overall fees for the quarter Q4-FY23.

The provisions for the year decreased by 46 per cent YoY, from Rs. 3,109 crore in FY22 to Rs. 1,665 crore in FY23. Credit cost for FY23 was 1.16 per cent against the guidance of 1.5 per cent. The bank's ROA improved from 0.08 per cent in FY22 to 1.13 per cent in FY23, while ROE for FY23 improved to 10.95 per cent from 0.75 per cent in FY22.

On the retail side, the Gross NPA is 1.65 per cent and the net NPA is at 0.55 per cent, against the guidance of Gross NPA of 2.0 per cent and NNPA of less than 1 per cent. Vaidyanathan stated that the asset quality remains high. If the infrastructure financing book, which is already in run-down mode, is excluded, the Gross NPA and Net NPA would be 1.84 per cent and 0.46 per cent, respectively, at the overall bank level.

Read More

Central Bank of India Q4 results: Net profit jumps 84%

 

Central Bank of India on April 29 reported an 84 percent surge in its net profit at Rs 571 crore for the quarter ended March 31, 2023. The lender had posted a profit of Rs 310 crore in the year-ago period.

On a sequential basis, the lender's profit grew 25 percent.

The bank's net interest income (NII) increased 45.35 percent on Y-o-Y basis to Rs 3,513 crore in Q4FY23 as against Rs 2,417 crore for Q4FY22. The same is up by 6.94 percent on a sequential basis.

Moreover, Central Bank of India said that its operating profit has shown a growth of 16.27 percent to Rs 2,108 crore for the quarter under review from Rs 1,813 crore in the last fiscal. The operating profit on sequential basis has improved by 16.65 percent.

Central Bank of India's asset quality improved in the March quarter. The gross non-performing asset came improved 640 basis points to 8.44 percent (YoY) while its net non-performing asset improved 220 basis to 1.77 percent (YoY).

The bank's provision coverage ratio stood at 92.48 percent (YoY), with an improvement of 579 basis points.

Sequentially, the bank's gross NPA stood at 8.44 percent against 8.85 percent in December quarter and its net NPA came at 1.77 percent against 2.09 percent.

In banking segment, the digital transaction count also registered a growth of 37.39 percent, in internet banking, mobile banking, IMPS and UPI transactions during FY 2022-23, against corresponding period of FY 2021-22.

Further, the lender's business per employee increased to Rs 18.70 crore as against Rs 17.52 crore for the same period of preceding year

Read More

Yes Bank Q4 results: Net profit declines 45%

Private lender Yes Bank Ltd on Saturday reported 45% drop in standalone net profit at Rs 202 crore for the quarter ending March 31, 2023 as provisions for bad loans increased. The bank reported standalone net profit of Rs 367 crore in the year-ago period.

Prashant Kumar, MD & CEO, Yes Bank said: “Over the last three years, the Bank has significantly progressed on several strategic objectives such as strengthening of Governance and Compliance Standards, bolstering the Balance Sheet through granularity, addressing the asset quality concerns, building up a strong liability franchise and expanding the customer base.

"At the same time, with continuous focus on retail, we have continued to expand our footprints with new Branches, increased the employee headcount and stepped-up our investments in technology. Our Retail franchise has now reached a critical scale and is poised for profitable growth. With the current momentum of accelerated growth, the efficiency gains and operating leverage will naturally drive the Bank’s profitability upwards."

Yes Bank’s provisions and contingencies increased to Rs 618 crore from Rs 271 crore a year earlier.

The lender's asset quality was mixed. The gross non-performing asset (NPA) ratio rose to 2.17% from 2.02% in the December quarter.

The gross NPA ratio was down from 13.93% a year earlier. In December Yes Bank completed the transfer of bad loans worth Rs 48,000 crore to private equity firm JC Flowers in a deal aimed at cleaning up its balance sheet.

The net NPA ratio was 0.83%, down from 1.03% in the prior three months.

Yes Bank's net interest income, the difference between the interest income from lending and that paid to depositors, rose 15.7% to Rs 2,105 crore from Rs 1,819.5 crore in the year-ago period. The net interest margin, a key indicator of a bank's profitability, rose to 2.8% from 2.5% a year earlier.

The private lender's net advances grew by 12.3% on year, led by retail loans, while deposits rose 10.3%.

Profits for both the March quarter and the fiscal year have been impacted by accelerated provisioning, the bank said.

For the entire fiscal FY23, the bank witnessed a 32.7% decline in its net profit at Rs 717 crore, it said in a regulatory filing.

Read More