Corporation bank Q4 loss widens due to higher provisions

Corporation Bank Friday said its loss widened to Rs 6,581.49 crore during the fourth quarter ended March 31, mainly due to higher provisioning for bad loans.

The bank had reported loss of Rs 1,838.39 crore during January-March quarter of 2017-18.

The total income of Corporation Bank during the fourth quarter of 2018-19 stood at Rs 4,187.65 crore down from Rs 4,642.45 crore in the same period of the previous fiscal, the lender said in a regulatory filing.

The bank, however has reported reduction in non-performing assets (NPAs).

The gross NPA as a percentage of total advances was 15.35 per cent compared to 17.35 per cent during fourth quarter of 2017-18.

The bank has made a provision of Rs 8,505.87 crore for NPAs almost double from Rs 4,441.29 crore in the year-ago quarter.

Corporation Bank's net loss stood at Rs 6,325.29 crore during the year 2018-19, as against Rs 4,049.93 crore in the preceding fiscal.

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Bank of India(BOI) back in the black in Q4FY19

Robust growth in net interest income and a sharp decline in loan-loss provisions helped Bank of India (BoI) report a turnaround performance, posting a net profit of ₹252 crore in the fourth quarter, against a net loss of ₹3,969 crore in the year-ago quarter.

In the reporting quarter, the public sector bank reported a 58 per cent year-on-year (y-o-y) jump in net interest income at ₹4,044 crore.

Total non-interest income (including commission, exchange and brokerage, profit from sale of investments, profit from exchange transactions, recovery in written-off accounts, and other non-interest income) was up 17 per cent y-o-y at ₹1,603 crore.

Provisioning

Loan-loss provisions declined sharply to ₹1,503 crore (₹6,699 crore in the year-ago quarter).

Gross non-performing assets fell to 15.84 per cent of gross advances, against 16.31 per cent in the preceding quarter. Net non-performing assets declined to 5.61 per cent of net advances, against 5.87 per cent in the preceding quarter.

“Bank of India has come back to the growth-and-profit path, and this has been possible by progress and improvement every quarter. We are in a better position vis-a-vis asset quality, current account, savings account (CASA), profit, net interest income, and capital. So, we are in a better position to grow and give better returns to the stakeholders,” said Dinabandhu Mohapatra, MD and CEO.

Mohapatra underscored that many big accounts are at the end of the resolution process at the National Company Law Tribunal (NCLT), and that the bank has provided around 100 per cent provision in all the NCLT accounts (list 1 and 2).

“And when these accounts will be resolved, we are expecting good write-back to our profit….Going forward, we will be showing good improvement in recovery. So, as a result, we will be in a position to grow; maybe, if macro-economic conditions improve, we can target to grow (loans) around 15 per cent in future,” he added.

Impaired assets

To clean-up its balance sheet further, BoI will be putting ₹30,000 crore worth of impaired assets, including those referred to the NCLT, on sale in FY20 to asset reconstruction companies.

In FY2019, it had put assets aggregating ₹17,000 crore on the block and recovered ₹1,700 crore.

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Jammu & Kashmir(J & K) Bank Q4 net profit jumps over 7-fold

J&K Bank, reported a 129% growth in net profit for the Financial Year 2018-19 at Rs 465 crore as compared to Rs 202 crore in the previous fiscal.

In the March 2019 quarter, the bank has reported a profit of Rs 214.80 Cr as compared to Rs 28.41 Cr in the corresponding quarter of FY 2018. Buoyed by strong retail credit growth, sale of partial stake in PNB MetLife, and resolution of some large NPLs, the total income of the bank rose to Rs 8,487 crore in the FY 2018-19 as compared to Rs 7,116 Cr a year ago.

The results for the FY 2018-19 and Q4 FY 18-19 were announced by the bank on Wednesday after its Board of Directors adopted the audited numbers of the bank in its meeting held at Corporate Headquarters Srinagar.

The growth in J&K state credit has been reported at 23% over the last year and net interest income – the difference between interest earned on loans and that paid on deposits – grew by 42% in the 4th quarter of 2018-19.

The NIIM of the bank, an indicator of profitability, was calculated at 4.05 for the 4th quarter and on full-year basis it improved to 3.84% as compared to 3.65% in the previous fiscal.

The Chairman & CEO of J&K Bank attributed the turnaround and stellar growth to the unflinching trust of the promoters and customers of the bank, especially from J&K state. He commended the management team, business heads and operative staff for robust credit growth, management of NPAs, NPA recovery, improvement in compliance culture, etc, despite a challenging environment.

“Our numbers are unfolding in line with our strategic business plan to direct the focus of our credit expansion in J&K state especially in retail & SME segments. We are continuously gaining market share in J&K besides improving the penetration of credit to hitherto credit starved geographies/segments especially in consumer and housing sectors. If you see our segmental numbers in retail, housing has grown by 79% from 3117 Cr to 5384 Cr, Consumer finance has grown exponentially from 195 Cr to 1978 Cr, Car loans have grown by 37% from 2000 Cr to 2741 Cr, resulting in aggregate retail credit growth of 33%. The corporate to retail mix of our overall advances is now 43% corporate to 57% retail, as compared 53% corporate and 47& retail a couple of years ago,” announced the chairman.

“The results also validate our medium-term growth strategy to achieve a total business of about 2.50 Lac Cr with a targeted profit of Rs 2000 Cr, NIIM ranging between 3.5-4%, ROA of 1.3%, ROE of 16%, and credit cost below 1% at the end of FY 2022. I can say confidently that once our provisioning requirements due to ageing of NPAs are over, may be in 3-4 quarters, the best in terms of bottom line is yet to come,” added Parvez Ahmed.

The bank, he said, will be targeting to extend its outreach to the vast majority of rural population of the state, which is dependent on informal channels for their financial needs. This, he said, will further strengthen the bank’s low cost CASA franchise, which at 50.7% is one of the best in the banking industry.

The bank’s total business as on the close of 31st March 2019 touched Rs 1,61,864 crore, comprising deposits of Rs 89,638 crore and gross advances of Rs 72,226 crore, as compared to total business of Rs 1,42,466 crore an year ago, an increase of around 14%.

As a percentage of total loans, the Gross and Net NPA ratios of the bank improved to 8.97% and 4.89% as compared to 9.96% and 4.90% a year ago. Notably, the bank recovered NPAs of Rs 2,750 Cr during the year, besides making provisions of over Rs 1,000 crore for bad & doubtful debts.

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Central bank of India Q4 result, net loss widens

Public sector lender Central Bank of IndiaWednesday reported widening in its losses to Rs 2,477.41 crore in the last quarter of 2018-19 due to a spike in provisioning of bad loans. 

The bank had reported a loss of Rs 2,113.51 crore in the January-March period of 2017-18. The bank had reported a loss of Rs 718.23 crore for the third quarter ended December 2018. 

Total income grew to Rs 6,620.51 crore in the three months to March from Rs 6,301.50 crore in the year-ago period, Central Bank said in a regulatory filing. 

For the full fiscal, the bank's loss widened to Rs 5,641.48 crore, as against Rs 5,104.91 crore in the preceding fiscal. Income during the year also fell to Rs 25,051.51 crore from Rs 26,657.86 crore year earlier. 

Gross non-performing assets stood at 19.29 per cent of gross advances at end-March 2019, against 21.48 per cent in the year-ago period. Net NPAs or bad loans stood at 7.73 per cent from 11.10 per cent a year ago. 

A substantial amount of Rs 4,523.57 crore was set aside as provisions for bad loans during the March quarter of 2018-19. The provisioning was Rs 4,832.47 crore in the year-ago period. 

Central Bank of India said it raised up to Rs 212.54 crore by allotting shares to staff under the Employees Stock Purchase Scheme, pending allotment of shares. 

"The Compensation Committee of the board of directors of the bank at its meeting held today approved the proposal for allotment of 78,716,224 equity shares to 26,071 eligible employees under Employee Stock Purchase Scheme," it said. 

Disclosing divergence in asset classification and provisioning for NPAs during 2017-18, the bank said there was a gap of Rs 636.20 crore in gross NPAs; Rs 452.80 crore in net NPAs and Rs 1,142 crore with respect to divergence in provisioning. 

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Karur Vysya Bank Q4 profit up 19%

Karur Vysya Bank on Wednesday reported a rise of 18.7% in March quarter net profit at ₹60.02 due to healthy income from retail banking even as bad loans spiked.

The bank clocked a profit of ₹50.56 crore during the corresponding January-March period of 2017-18, as per a regulatory filing.

Total income in the latest quarter rose to₹1,746.04 crore from ₹1,699.53 crore in the year-ago period. Income from retail banking was higher 4.6% to ₹967.23 crore.

For full 2018-19 financial year, the bank posted a decline of 39% in net profit at₹210.87 crore as against ₹345.67 crore in 2017-18, it said.

Income during the year increased to₹6,778.59 crore from ₹6,599.58 crore in 2017-18.

Bank's asset quality deteriorated during the year with gross non-performing assets (NPAs) hitting 8.79% of gross advances as on 31 March 2019, as against 6.56% by end-March 2018.

Net NPAs rose to 4.98% from 4.16%.

In absolute value, gross NPAs were ₹4,449.57 crore by end of 2018-19, compared to₹3,015.76 crore a year ago. Net NPAs amounted to ₹2,420.34 crore as against₹1,862.83 crore earlier.

Even though bad assets were on the rise, the provision for bad loans and contingencies for March 2019 quarter came down to ₹352.34 crore from ₹394.17 crore a year ago.

During March quarter 2019, the bank issued Basel III compliant tier II bonds to the tune of₹487 crore, it said.

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Union Bank of India Q4 result, net loss widens on higher provisioning

State-owned Union Bank of India Tuesday said its net loss widened to Rs 3,370 crore in the fourth quarter of 2018-19, mainly on account of higher provisioning. The company had registered a net loss of Rs 2,583.38 crore in the same quarter of the preceding fiscal.

However, the bank had posted a net profit of Rs 153.21 crore in the third quarter of 2018-19.

Total income in three months to March grew to Rs 9,621.01 crore, as against Rs 9,596.86 crore in the same period of 2017-18.

For entire 2018-19, the bank reported a net loss of Rs 2,922.35 crore on a consolidated basis, as against Rs 5,212.47 crore loss in 2017-18. Income during the year stood at Rs 39,355.38 crore, up from Rs 38,413.65 crore a year earlier.

The asset quality of the bank remained poor with the gross non-performing assets (NPAs) standing at 14.98 per cent of gross advances at March-end 2019 against 15.73 per cent as of March 31, 2018. Net NPAs came down to 6.85 per cent from 8.42 per cent.

The high level of bad asset ratio compelled the bank to make higher provisioning of Rs 5,783.09 crore for March quarter, compared to Rs 5,638.57 crore in the year-ago period.

The bank's provision coverage ratio as on March 31, 2019 stood at 66.24 per cent, as against 57.16 per cent a year ago.

As part of the risk based supervision as per RBI directive, the bank has reported divergence in gross NPAs of Rs 867 crore in 2017-18; divergence in net NPA of (-) Rs 1,414 crore and divergence in provisioning stood at Rs 2,281 crore. The adjusted net loss during 2017-18 came at Rs 6,770 crore.

Union Bank said its cash recovery and upgradation during 2018-19 increased by 188.5 per cent to Rs 6,447 crore as against Rs 2,235 crore in 2017-18.

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Uco bank Q4 result, net loss narrowed

State-owned UCO Bank Tuesday said its net loss has narrowed to Rs 1,552.02 crore in March 2019 quarter, amid a persistent high level of bad loan ratio.  The bank had reported a net loss of Rs 2,134.36 crore during the corresponding January-March quarter of 2017-18. 

Sequentially, the loss in March 2019 quarter was higher than Rs 998.74 crore in the December quarter of 2018-19. 

Thus, for the entire financial year, there was a net loss of Rs 4,321.09 crore, against Rs 4,436.37 crore loss in 2017-18. 

Its total income in the March quarter rose to Rs 4,148.52 crore as against Rs 3,424.65 crore in the corresponding quarter of the previous fiscal, the bank said in a regulatory filing. 

In full 2018-19, the total income moved up to Rs 15,844.14 crore as against Rs 15,141.13 crore. 

The Kolkata-headquartered bank witnessed worsening in its gross bad loan ratio at 25 per cent of the gross advances at end-March 2019, against 24.64 per cent by the end of March 2018. In the December quarter, the non-performing asset (NPA) ratio was 27.39 per cent. 

However, the net NPAs were trimmed to 9.72 per cent by the end of 2018-19 as against the year-ago period's 13.10 per cent. It was at 12.48 per cent by the end of December 2018. 

Provisioning requirement for bad loans for March 2019 quarter stood at Rs 2,601.80 crore as against Rs 3,133.52 crore a year ago. 

The bank's total assets grew to Rs 2,30,484.08 crore as on March 31, 2019, from Rs 2,16,056.18 crore a year ago. 

UCO Bank also showed a divergence of (-) Rs 2.68 crore in gross NPAs for 2017-18, and (-) Rs 663.44 crore in net NPAs. The divergence in provisioning stood at Rs 660.76 crore in 2017-18, it said. 

Thus, on an adjusted basis, there was net loss of Rs 5,099.81 crore during 2017-18.

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Karnataka Bank Q4 net profit jumps nearly 6-fold

Karnataka Bank May 13 posted close to a six-fold jump in net profit at Rs 61.73 crore during March quarter 2019. The bank clocked a profit of Rs 11 crore during January-March period of 2017-18. The profit was however lower from Rs 140.41 crore reported in December quarter 2018-19. Total income during the latest quarter grew 4.85 per cent to Rs 1,821.88 crore from Rs 1,737.55 crore in year-ago same period, Karnataka Bank said in a regulatory filing.

Net interest income dipped 11.20 per cent to Rs 480.88 crore in March quarter, as against Rs 541.51 crore in the year-ago period.

Net interest margin -- a gauge of profitability for banks--was lower by 67 basis points to 2.87 per cent for the latest quarter as against 3.54 per cent a year ago.

Karnataka Bank said its gross NPAs came down to 4.41 per cent of gross advances by end of March 2019 from 4.92 per cent by the year-ago same period. Net bad loans were also down to 2.95 per cent from 2.96 per cent.

For full 2018-19 fiscal, Karnataka Bank posted an all-time high annual profit of Rs 477.24 crore, rising by 46.57 per cent from the previous fiscal, it said. The previous highest net profit of Rs 452.26 crore was posted during 2016-17.

The bank's board on Monday recommended a dividend of Rs 3.50 per share for the fiscal, it said. Bank's provision coverage ratio stood at 58.45 per cent as on March 31, 2019 (54.56 per cent as on March 31, 2018)

The lender said it has raised Rs 320 crore under tier II capital by issuing Basel III-compliant subordinated debt instrument, on private placement basis during the quarter.

The total amount raised during the year by issue of such instruments is Rs 720 crore.

The highest net profit during the year has been possible on account of consistent and sustained growth, said Mahabaleshwara MS, Managing Director and CEO of the bank.

"Further, this is the first full year of Karnataka Bank VIKASS, the transformation initiative of the bank, which is centred around credit, IT, HR etc. This initiative has started bearing result as the bank is now functioning as 'one bank, one team' and the initiative has resulted in further strengthening of the fundamentals," he said.

The advances of the bank rose 16.03 per cent to Rs 54,828 crore by end of March 2019; deposits were up 8.88 per cent to Rs 68,452 crore.

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