Corporation Bank posts massive Q4 loss as provisions surge

State-owned lender Corporation Bank on Saturday reported a net loss of Rs1,838 crore for the March quarter of last fiscal, mainly on account of increased provisioning.

The bank had reported a net profit of Rs159 crore in the corresponding period of the 2016-17 fiscal.

Corporation Bank is among the 11 lenders which have been placed under the RBI’s prompt corrective action (PCA) framework on account of high bad loans.

Provisions for non-performing assets (NPAs) or bad loans increased to Rs4,441 crore during fourth quarter of 2017-18 as against Rs853 crore during the January-March period of the previous fiscal, the bank said in a filing to the BSE.

The gross NPAs of the bank soared to 16.21% in March quarter, from 11.70% in the same period of 2016-17.

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Bank of Baroda(BoB) slumps to loss in Q4 on higher NPA provisioning

Bank of Baroda on Friday reported Q4 loss of Rs3,102 crore on the back of lower other income and higher provisioning against non-performing assets (NPAs).

The bank posted a net loss of Rs3,102.34 crore for the March quarter compared to a profit Rs154.72 crore in the year-ago period. The loss was higher than the Rs28.03 crore estimated by a Bloomberg poll of 18 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 11.74% to Rs4,002.26 crore from Rs3,581.86 crore in the corresponding period last year. Other income, which includes core fee income, lost 14.23% to Rs1,695.90 crore in the three months from Rs1,977.28 crore a year ago.

Gross NPAs, as a percentage of total advances, were at 12.26% in Q4 compared with 11.31% in the December quarter and 10.46% in the year-ago March quarter.

Provisions during the quarter increased two-and-a-half fold to Rs6,672.38 crore as against Rs2,262.97 crore in the year-ago quarter. In the October-December quarter, the bank had set aside Rs3,426.51 crore in provisions.

Post-provision, the net NPA ratio was at 5.49% against 4.97% in the October-December quarter and 4.72% in the year-ago quarter.

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IDBI Bank posts huge Q4FY18 loss

State-owned bank IDBI Bank on Friday reported huge losses at the end of the March quarter after setting aside funds to cover rising bad loans.

The IDBI Bank reported a net loss of Rs8,157.11 crore for the fiscal third quarter after its provisions doubled to Rs10,773.30 crore from Rs3,637.49 crore at the end of December 1.

The bank reported a net loss of Rs5,662.76 crore in the March quarter compared to Rs1,524.31 crore during the same quarter in the previous year.

The bank’s gross non performing assets rose to 27.95% compared to 24.72% at the end of December quarter.

In a post results press conference. MK Jain, managing director & chief executive officer, said that the bank has identified Rs21,397 crore worth of bad loans to be put up for sale, which includes 30 large corporate accounts. He also said that the bank has added fresh bad loans worth Rs12,823 crore in the fourth quarter.

“Most of the legacy issues on asset quality has been recognised. We hope to turnaround by the end of the financial year, on the back of IBC resolutions,” Jain said.The rise in bad loans was because of a Reserve Bank of India (RBI) review which revealed a divergence in reporting of gross NPAs based on fiscal 2017 results. Such divergence—the difference between RBI’s assessment and that reported by the lender—was around Rs10,281 crore at the end of March 2017.

The bank’s net interest income (difference between interest earned and paid) declined by 43.9% to Rs915.47 crore in the January to March quarter 2018, as compared to Rs1,633.3 crore in the same quarter in 2017.

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Karur Vysya Bank Q4 result, profit tanks 77%

Private sector lender Karur Vysya Bank has reported a sharp 76.8 percent decline year-on-year in profit at Rs 50.6 crore for the quarter ended March 2018, dented by massive jump in bad loans provisions.

Profit the corresponding quarter of previous fiscal was at Rs 217.6 crore, the banks said in its filing.

Net interest income, the difference between interest earned and interest expended, grew by 10.8 percent to Rs 643 crore compared to year-ago period.

Provisions for bad loans shot up 81 percent year-on-year (up 21 percent sequentially) to Rs 394.2 crore in Q4FY18.

Asset quality weakened further as gross non-performing assets (NPA) for the quarter inched up to 6.56 percent against 5.94 percent in previous quarter. Net NPAs were also higher at 4.16 percent against 3.88 percent in December quarter.

Other income or non-interest income fell 10 percent year-on-year to Rs 208.65 crore and operating profit declined 5.4 percent to Rs 480 crore for March quarter.

Karur Vysya Bank said its gross NPA divergence for the financial year 2016-17 stood at Rs 651 crore and net NPA divergence at Rs 202 crore while the provision divergence for the same year was also at Rs 202 crore.

Net profit after adjusting provision divergence was at Rs 474 crore for FY17 against reported profit at Rs 606 crore.

FY17 gross NPA divergence of Rs 650.9 crore was 1.59 percent of the loan book.

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City Union Bank Q4 profit rises 18%

Private sector lender City Union Bank Ltd has reported an 18.04% rise in net profit at Rs152.12 crore for the quarter ended 31 March, compared to a net profit of Rs128.87 crore in the year-ago period.

Total income for the quarter rose 6.99% to Rs990.48 crore, as against Rs925.75 crore in the same quarter last year.

Net interest income increased by 18% to Rs368 crore from Rs311 crore last year. Net interest margin was at 4.36% in the last quarter.

Gross NPA stood at 3.03% as on 31 March, as against 2.83% a year ago. Net NPA was at 1.70% in the last quarter of the last fiscal compared with 1.71% in the same period in 2016-17.

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Andhra Bank posts big loss for Q4FY18

Public sector lender Andhra Bank today said it suffered Rs 2,636 crore loss for the quarter ended March 31 2018 due to higher provisioning for bad loans. The bank made a profit of Rs 35 crore during the same quarter in FY 17, it said in a press release.

The total income was down by six per cent to Rs 5,093 crore against Rs 5,425 crore in January-March quarter of FY17. The PSU made Rs 3,902 crore towards Contingencies and Provisions during the quarter under discussion against Rs 1,399 crore in Q4 of Fy17.

For the full year of 2017-18 Andhra Bank suffered Rs 3,413 crore loss against Rs 174 crore profit for FY 17, it said. The gross NPAs stood at Rs 28,124.36 crore at the end of FY 18 against Rs 17,669.98 crore at the end of FY17.

Total business grew by 9.70 per cent to Rs 3,72,605 crore in the last fiscal. It was Rs 3,37,693 crore in FY 17, Andhra Bank said.

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26 banks pile up NPAs worth Rs 7.31 lakh crore in Q4

Non-performing assets of 26 banks that have declared their earnings so far have risen to Rs 7.31 lakh crore, a rise of Rs 2.5 lakh crore this year compared to March 2017, CARE Ratings said in a report.

The total provisions during the year (of which the most would be for NPAs) increased to Rs 105,150 crore from Rs 43,611 crore, an increase of 141 percent, the report further stated.

Gross NPAs, it said, has risen to its peak at 10.14 percent in March 2018.

On a segmental basis, for public sector banks, NPA rates rose to 13.41 percent after being stable in the range of 11-12 percent in the first quarter of last fiscal.

“For private banks too, NPAs have spiked in March 2018 after moderating in December 2017 relative to September 2017,” analysts at the firm wrote in their report.

Results are awaited for other banks, which include Bank of Baroda, Bank of India, IDBI Bank, Corporation Bank, IOB, United Bank, Andhra Bank in the PSB group and City Union, Dhanlaxmi Bank, Karur Vysya, Laxmi Vilas and J&K in the private sector.

Source - Moneycontrol

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State bank of India(SBI) posts huge loss in Q4,misses estimates

                            

India’s largest lender State Bank of India (SBI) on Tuesday reported a net loss for the second consecutive quarter as bad loans continued to mount and provisions soared.

SBI reported a loss of Rs7,718.17 crore in the March quarter, or Q4 FY18, compared to a profit of Rs2,814.82 crore a year ago. The bank had posted a net loss of Rs2,416 crore in the fiscal third quarter.

According to a poll of 14 analysts by Bloomberg, the bank was expected to post a Rs1,728 crore loss in the March quarter.

Provisions and contingencies surged 139.32% to Rs28,096.07 crore in the quarter from Rs11,740.09 crore a year ago. On a quarter-on-quarter basis, they rose 48.8% from Rs18,876.21 crore.

SBI’s bad loan divergence, the difference between Reserve Bank of India’s (RBI) assessment and that reported by the lender, stood at around Rs23,239.13 crore, while divergence in provisions was at Rs5,720.66 crore.

SBI’s gross non-performing assets (NPAs) as assessed by RBI stood at Rs1.36 trillion as on 31 March 2017, the bank said. It had reported gross NPAs of Rs1.12 trillion as on March 2017. However, the bank said the net impact of divergences has reflected in the current earnings.

Gross NPAs advanced 99% to Rs2.23 trillion at the end of the March quarter from Rs1.12 trillion in the same quarter last year. As a percentage of total loans, gross NPAs stood at 10.91% in Q4 as compared to 10.35% in the previous quarter and 6.9% in the year-ago quarter. Net NPAs were at 5.73% in the March quarter compared to 5.61% in the previous quarter and 3.71% in the same quarter last year.

Net interest income (NII), or the core income a bank earns by giving loans, increased 10.5% to Rs19,974.28 crore versus Rs18,070.72 crore last year. Other income stood at Rs12,494.78 crore, up 21% from Rs10,327.50 crore a year ago.

Advances for the quarter rose 23.16% from a year ago to Rs19.35 trillion, while deposits grew 32.36% to Rs27.06 trillion.

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