Bank of Baroda posts net profit in Q4

Bank of Baroda on Tuesday reported a standalone net profit of Rs 506.59 crore for the March 2020 quarter.

The bank had posted a net profit of Rs 991.37 crore in the January-March quarter of the preceding fiscal ended March 2019.

The figures for the quarter are not comparable year-on-year due to amalgamation of Vijaya Bank and Dena Bank into it with effect from April 2019.

The Government of India through a gazette notification dated January 2, 2019 approved the scheme of amalgamation between Bank of Baroda, Dena Bank and Vijaya Bank and amalgamation is effective April 1, 2019.

The results for the quarter/ year ending March 31, 2020 and quarter ended December 31, 2019 includes operations of erstwhile Vijaya Bank and erstwhile DenaBank, Bank of Baroda said in a regulatory filing.

"Hence the results for quarter and year ended March 31, 2020 are not comparable with corresponding period of previous year and for the year ended March 31, 2019," it said.

The income for the March quarter of 2019-20 was at Rs 21,533.10 crore. Its income during the same quarter of 2018-19 was Rs 15,284.59 crore.

For the full year FY20, Bank of Baroda posted a net profit of Rs 546.18 crore, up from Rs 433.52 crore in FY19.

Income during the year increased to Rs 86,300.98 crore from Rs 56,065.10 crore.

On asset front, Bank of Baroda witnessed slight improvement as the gross non-performing assets (NPAs) or bad loans came down to 9.40 per cent of the gross advances as on March 31, 2020 as against 9.61 per cent by March 31, 2019.

Likewise, net NPAs fell to 3.13 per cent from 3.33 per cent.

The bank has not declared any dividend for the FY 2019-20, BoB said.

Non-performing assets provisioning coverage ratio (including floating provision) is 81.33 per cent as on March 31, 2020 (previous year's 78.68 per cent), it added

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Punjab National Bank Q4 net loss narrows

Punjab National Bank’s net loss narrowed down to Rs 697.20 crore for the quarter ended March 31, compared with Rs 4,749.64 crore loss in the corresponding quarter last year.

Asset quality of the lender improved with the percentage of gross non-performing assets (NPA) at 14.21 per cent against 15.90 per cent YoY. The figure stood at 16.30 per cent in the preceding quarter ended December 31.

Percentage of net NPA also improved to 5.76 per cent from 6.56 per cent YoY.

PNB made provisions of Rs 4,901.31 crore for bad loans during the quarter under review, down 51.33 per cent from the year-ago period.

The lender is evaluating the uncertainty caused by Covid-19. “The major identified challenge for the bank would arise from eroding cash flows and extended working capital cycles. The bank is gearing itself on the fronts to meet these challenges. The management believes that no adjustments are required in the financial results as it does not significantly impact the current financial year,” PNB said in a regulatory filing on Friday.

The provision coverage ratio of the bank stood at 77.79 per cent as of March 31.

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City Union Bank Q4 results, Reports Rs 95.25 crore loss

City Union Bank on Thursday reported a loss of Rs 95.25 crore for the fourth quarter ended March 2020, due to a spike in bad loan provisioning.

The private sector lender had posted a net profit of Rs 175.11 crore during the corresponding quarter of the previous financial year 2018-19. Sequentially, the bank had registered a net profit of Rs 192.43 crore in the December 2019 quarter.

The bank's provisioning for bad loans and contingencies had to be raised multi- fold to Rs 450.38 crore in the March 2020 quarter, against Rs 90.67 crore in the year-ago period, City Union Bank said in a regulatory filing.

Income during the reporting quarter of 2019-20 rose to Rs 1,220.98 crore, from Rs 1,131.44 crore a year ago.

On the asset front, the bank witnessed a spike in bad loans as gross non-performing assets (NPAs) rose to 4.09 per cent of the gross advances as on March 31, 2020, as against 2.95 per cent in the year-ago corresponding quarter.

In absolute value, the gross NPAs were of Rs 1,413.40 crore, higher than Rs 977.05 crore in the year-ago period.

Likewise, the net NPAs also increased to 2.29 per cent (Rs 778.49 crore), compared with 1.81 per cent (Rs 591.46 crore).

For the full year 2019-20, the bank posted a net profit of Rs 476.32 crore, down 30.2 per cent from Rs 682.85 crore in 2018-19.

However, income during the year grew to Rs 4,848.54 crore, from Rs 4,281.56 crore in the preceding financial year.

On the coronavirus pandemic, City Union Bank said it has sufficient capital and adequate liquidity to support its business growth and would continue to be the focus area of the bank during this period.

"The bank, based on available information at this point of time and as a prudent measure, has made a provision of Rs 125 crore in the current quarter that includes an adhoc COVID-19 provision of Rs 102 crore, over and above the (Reserve Bank of India) RBI-prescribed norms," it said.

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Bank of Maharashtra posts net profit in Q4

State-owned Bank of Maharashtra(BoM) on Tuesday posted a 20 per cent decline in net profit at Rs 57.57 crore in the fourth quarter ended on March 31 hit by the COVID-19 crisis.

The bank had posted a net profit of Rs 72.38 crore in the corresponding quarter of the previous financial year.

The total income during the January-March quarter of 2019-20 rose to Rs 3,198.30 crore from Rs 3,160.79 crore in the year-ago quarter, the bank said in a release.

“The profit in the (March) quarter was down as we made certain additional provisions for COVID of around Rs 150 crore during the quarter as against the required provision of Rs 38 crore," the bank's managing director and CEO A S Rajeev said.

The higher provision is on account of a 20 per cent provision the bank made on its SMA (special mention account) 2 book which is at Rs 702 crore as against the regulatory requirement of 10 per cent, he further explained.

“Had this higher provision not there, our profit would have been over Rs 200 crore during the quarter," Rajeev said.

Nearly 40 per cent of the bank's borrowers have availed the moratorium on term loans announced by the RBI. In value terms, close to Rs 16,400 crore of its total term loan book is under moratorium.

Its net interest margins stood at 2.41 per cent in the quarter ended March as against 2.64 per cent in the same period last year.

On the assets front, gross bad loans or non-performing assets (NPAs) of the bank came down to 12.81 per cent of the gross advances as on March 31, 2020, from 16.40 per cent a year ago.

Net NPA came down to 4.77 per cent from 5.52 per cent a year ago.

Provision coverage ratio improved to 83.97 per cent as on March 31 as against 81.49 per cent as on March 2019, it said.

Its recovery and upgradation stood at Rs 511 crore during the quarter. Fresh slippages were at Rs 942 crore as against Rs 1,085 crore.

Capital adequacy ratio under Basel III stood at 13.52 per cent as compared to 11.86 per cent. Net advances rose 5.09 per cent to Rs 86,872 crore as against Rs 82,666 crore.

"In terms of RBI circular dated April 17, the bank has made provision of Rs 150 crore in FY20 towards COVID-19 Regulatory Package Provision as against required provision at the rate of 5 per cent that is Rs 38 crore," it said.

For the entire financial year 2019-20, Bank of Maharashtra earned net profit of Rs 389 crore as against loss of Rs 4,783 crore in the previous fiscal.

Net Interest Margin of the bank improved to 2.60 per cent in 2019-20 as compared to 2.53 per cent in 2018-19.

During the year, the business, a mix of total deposit and advances, increased to Rs 2,44,955 crore from Rs 2,34,117 crore in 2018-19.

As per the RBI direction, the bank has not announced dividend despite posting profit for 2019-20.

The past several weeks have witnessed the country battling an unprecedented crisis on account of COVID-19 pandemic, it said, adding, the Bank was quick to recognize the gravity of the situation and took various supportive measures for the welfare of  the customers and employees.

Bank waived service charges in Current and Savings account up to June 30, 2020. Besides, the bank has introduced GECL scheme under Emergency Credit Line Guarantee Scheme.

Under this scheme, the bank has been offering working capital loan up to 20 per cent of the borrowers total outstanding credit (max upto Rs 25 crore) to all business accounts with annual turnover up to Rs 100 crores for FY 2019-20.

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SBI net profit jumps to Rs.3,581 crore in Q4

State Bank of India (SBI), the country's largest lender by assets, reported a more than four-fold jump in profit for the fourth quarter on Friday, driven by a one-time gain from a stake sale in its credit card unit. Net profit for the three months ended March 31 jumped to Rs.3,581 crore from Rs.838 crore a year earlier, SBI said in a regulatory filing.

SBI's net profit was lifted by a one-time gain of Rs.2,731 crore on sale of certain portion investment in bank's credit card subsidiary SBI Cards in Q4.

Gross bad loans as a percentage of total loans, a measure of asset quality, eased to 6.15% from 6.94% in the previous quarter, while provisions for bad loans fell 31.4% to Rs.11,894 crore.

Highlights of SBI results:

SBI registered a net profit of Rs.3,581 crore in Q4FY20, an increase of 327% over Q4FY19.

For the full year FY20, net profit stood at Rs. 14,488 crore against net profit of ₹862 crore in FY19. This is also the highest ever yearly net profit recorded by the Bank.

Operating Profit increased to Rs. 68,133 Crores in FY20 from Rs. 55,436 Crores in FY19, an increase of 22.90% YoY.

Net Interest Income of the Bank grew by 11.02% YoY during FY20.

Domestic Net Interest Margin (NIM) improved to 3.19% in FY20, registering an increase of 24 bps YoY.

Non-Interest Income for FY20 at Rs. 45,221 Cr is up by 22.97% YoY.

Total Deposits grew at 11.34% YoY, out of which Current Account Deposit grew by 7.56% YoY, while Saving Bank Deposits grew by 9.99% YoY.

Credit Growth stood at 5.64% YoY, mainly driven by Retail (Personal) Advances (15.40% YoY) and Foreign Office Advances (18.05% YoY).

Home loan, which constitutes 22% of Bank’s domestic advances, has grown by 13.86% YoY.

Net NPA ratio at 2.23% is down 78 bps YoY and 42 bps QoQ.

Gross NPA ratio at 6.15% is down 138 bps YoY and 79 bps QoQ.

Provision Coverage Ratio (PCR) has improved to 83.62%, up 489 bps YoY and 189 bps QoQ.

Slippages Ratio for FY20 has declined to 2.16% from 2.42% as at the end of 9MFY20.

Credit Cost as at the end of FY20 has declined 79 bps YoY to 1.87%.

Cost to Income Ratio has improved from 55.70% in FY19 to 52.46% in FY20, an improvement of 324 bps.

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Karnataka Bank Q4 net profit down 55.76 per cent

Karnataka Bank Ltd registered a net profit of Rs.27.31 crore in the fourth quarter of 2019-20 as against a net profit of Rs.61.73 crore in the corresponding period of the previous fiscal, recording a decline of 55.76 per cent.

The board of directors of the bank met on Saturday to consider the audited financial result for 2019-20.

The gross NPA of the bank stood at 4.82 per cent during the Q4 of 2019-20 as against 4.41 per cent in the corresponding period of 2018-19. The net NPA was at 3.08 per cent (2.95 per cent) during the period.

Provisions (other than tax) and contingencies increased to Rs.356.50 crore during the Q4 of 2019-20 as against Rs.217.73 crore in the corresponding period of the previous fiscal.

Quoting Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, a press release said that the financial year just concluded was no doubt challenging but the bank has been able to sail smooth.

He said the operational efficiency has further got momentum. As a result, stressed assets were further moderated during the financial year. The bank also focussed on resilience by improving the PCR (provision coverage ratio). The PCR improved to 64.70 per cent as on March 31 2020 2019-20 from 58.45 per cent as on March 31 2019, he said.

NII

The net interest income (NII) of the bank stood at Rs.529.3 crore (Rs.480.88 crore), and the other income at Rs.440.37 crore (Rs.290.59 crore) during Q4 of 2019-20. The net interest margin (NIM) was at 2.86 per cent (2.87 per cent) during the quarter.

The bank recorded a net profit of Rs.431.78 crore for 2019-20 as against Rs.477.24 crore for 2018-19.

“Going forward even though COVID-19 pandemic era is a phase of uncertainties’, the bank is committed to ‘conserve, consolidate and emerge stronger’ by having a conservative approach,” Mahabaleshwara said.

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IDBI Bank posts net profit in Q4

IDBI Bank on Saturday posted a net profit of Rs 135 crore for the quarter ended March 2020 on account of recoveries from bad loans. The lender reported a profit after 13 straight quarters of net losses.

The bank, majority owned by Life Insurance Corporation of India (LIC), had posted a net loss of Rs 4,918 crore in the corresponding period of last year.

Total income rose to Rs 6,925 crore as against Rs 6,616 in the fourth quarter of 2018-19, the bank said in a regulatory filing.

As a result of increased recovery from resolution of bad loans, there was write back of Rs 1,511 crore as against provision of Rs 7,233 crore in the same period last year.

The bank made COVID-19-related provisions of Rs 247 crore during the quarter against standard assets.

The gross non-performing assets ratio inched up to 27.53 percent during the quarter as against 27.47 percent, while net NPA came down sharply to 4.19 percent as against 10.11 percent earlier.

The bank raised Rs 745 crore through issue of Basel-III compliant tier-2 bonds in the March quarter. The amount mobilised would be counted as part of tier-2 capital and enhance the capital adequacy of the bank, it said.

Despite posting a profit in the fourth quarter, IDBI Bank logged a net loss of Rs 12,887 crore for 2019-20 as against a net loss of Rs 15,116 crore in FY19.

The net interest margin (NIM) for FY20 improved to 2.61 percent as against 2.03 percent in the previous fiscal.

In January 2019, LIC completed the acquisition of 51 percent controlling stake in the lender. The state-run life insurer infused Rs 21,624 crore into the bank.

The bank, which is under the Reserve Bank of India's prompt corrective action (PCA) framework, said it has achieved all PCA parameters for exit except return on asset.

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Federal Bank Q4 results: Net profit drops 21%

Federal Bank's net profit fell 21% due to a sharp rise in provisioning as the bank set aside money to deal with stress from the Covid 19 crisis.

Net profit fell to Rs 301 crore in March 2020 from Rs 382 crore a year ago.

Provisions increased to Rs 568 crore in March 2020 from Rs 178 crore a year ago and higher than Rs 161 crore in the quarter ended December.

Of the total provisions Rs 93 crore were Covid related which were higher than the Rs 30 crore required under RBI regulations.

Gross non-performing assets (NPAs), as a percentage of total advances, were stable at 2.84% in the March quarter compared with 2.92% a year-ago.

"To face any unfavorable situation that may arise due to the pandemic, we have increased the provisions substantially and strengthened the balance sheet. On the business front, the bank has achieved robust growth in the retail segment with housing and gold loans growing handsomely," said Shyam Srinivasan, CEO, Federal Bank.

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