Indian Overseas Bank(IOB) Q4 profit jump over two times

 

State-owned Indian Overseas Bank (IOB) on Monday reported a jump of over two times in its net profit at Rs 349.77 crore in the last quarter of the fiscal ended March 2021.

The bank had posted a net profit of Rs 143.79 crore in the same period a year ago.

Total income during Q4FY21 rose to Rs 6,073.80 crore as against Rs 5,484.06 crore in Q4FY20, IOB said in a regulatory filing.

Provisions for bad loans and contingencies for the reported quarter increased to Rs 1,380.46 crore as against Rs 1,060.38 crore parked aside in the corresponding period a year earlier.

For the full year 2020-21, the bank reported a net profit of Rs 831.47 crore. There was a net loss of Rs 8,527.40 crore in 2019-20.

Total income during the year increased to Rs 22,524.55 crore from Rs 20,712.48 crore in the previous fiscal year.

Bank's asset quality showed improvement with the gross non-performing assets (NPAs) falling to 11.69 per cent of the gross advances as of March 31, 2021 from 14.78 per cent by year ago same period.

In value terms, the gross NPAs or bad loans were of the order of Rs 16,323.18 crore, down from Rs 19,912.70 crore.

Net NPAs fell to 3.58 per cent (Rs 4,577.59 crore) from 5.44 per cent (Rs 6,602.80 crore).

The bank said its board of directors has approved the capital plan for 2021-22 under which it will issue equity shares up to a maximum extent of 125 crore shares by way of follow on public offer/rights issue.

The issue may be with or without participation from the government or to qualified institutional buyers (QIBs), the lender said.

It may be also on a preferential basis to LIC and other insurance companies or mutual funds/QIBs. The issuance of shares is subject to shareholders approval, IOB said.

Besides, the board also approved to raise tier II capital by issuing Basel III compliant bonds up to Rs 1,000 crore in one or more tranches. The issue may be through a private placement or to retail segment by public issue, either domestically or overseas, it added.

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Union Bank of India posts net profit in Q4, asset quality improves

 

Union Bank of India posted a standalone net profit of ₹1,329.77 crore for the quarter ended March 31, 2021. The state-run lender has reported a loss of ₹2,503.18 crore in the corresponding period of previous fiscal.

Union Bank of India clarified that the financial results for fiscal FY21 and its fourth quarter are not comparable to corresponding figures in the year-ago period as "working results for the quarter/year ended March 31, 2021, include operations of erstwhile Andhra Bank and erstwhile Corporation Bank". The central government had approved the scheme of amalgamation of the three banks on March 4, 2020, which came into effect on April 1, 2020.

"Accordingly, the difference of ₹1,309.60 crore between the net assets of amalgamating banks and the amount of shares issued to shareholders of the amalgamating banks has been recognised as Amalgamation Reserve in the opening balance sheet as on April 1, 2020. The bank has considered this amount under CET I for the purpose of calculation of CRAR," Union Bank of India said in a regulatory filing.

Total income during the quarter under review was ₹20,025.99 crore as opposed to ₹11,306.99 crore in the year-ago period. Net interest income for Q4 FY21 stood at ₹5,402.86 crore, against ₹2,878.11 crore in Q4 FY20.

Operating profit for the March quarter of FY21 was recorded at ₹5,179.87 crore, as opposed to ₹2,652.64 crore in the same period of FY20.

The bank saw its asset quality improve, with gross non-performing assets (NPAs) decline to 13.74 per cent of the gross advances as of March 31, 2021, as against 14.15 per cent by the end of corresponding period previous fiscal. Net NPAs or bad loans came down to 4.62 per cent from 5.49 per cent.

The bank said it has not classified the borrower account of Delhi Airport Metro Express (DAMEPL) as NPA in accordance to a Supreme Court order. However, following RBI directives dated June 21, 2019, the bank has not treated ₹94.9 crore as NPA against DAMEPL and made the provisions to the tune of ₹43.31 crore in accordance with the Income Recognition and Asset Classification and Provisioning (IRAC) norms, notionally treating the account as NPA.

"Further, the bank also has exposure of ₹3,269.09 crore with two borrower accounts belonging to another business group. In terms of NCLT, Kolkata bench order dated 21 October 2020, the bank has not declared these accounts as NPA and maintained status quo until further orders. As a prudence, the bank has made a provision of ₹549.45 crore pending final decision," it added.

On the impact of Covid-19 pandemic, Union Bank of India said, "Though the situation continues to remain uncertain, the bank is continuously monitoring the situation and taking all possible measures to ensure continuance of full-fledged banking operations. The management believes that there would not be any significant impact on bank's performance in future and going concern assumptions."

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Central Bank of India Q4 results: Lender's net loss narrows

 

State-owned Central Bank of India on Monday reported narrowing of its net loss to Rs 1,349.21 crore on a standalone basis in the last quarter of the fiscal ended March 2021. The bank had posted a net loss of Rs 1,529.07 crore in the same quarter of the preceding fiscal year. Sequentially, there was a net profit of Rs 165.41 crore in the December quarter of FY21.

Net profit (standalone) for the entire fiscal 2020-21 was down by 20.84 per cent to Rs 887.58 crore as against Rs 1,121.35 crore in 2019-20, Central Bank of India said in a regulatory filing.

Income (standalone) during Q4FY21 also fell to Rs 5,779.84 crore from Rs 6723.73 crore in Q4FY20.

For the full year, the income was down at Rs 25,897.44 crore as against Rs 27,199.29 crore in FY20, the bank said.

The asset quality of the state-owned lender showed improvement with the gross non-performing assets (NPAs) falling to 16.55 per cent of the gross advances by end of March 2021 as against 18.92 per cent by year-ago same period.

In absolute value, gross NPAs fell to Rs 29,276.96 crore from Rs 32,589.08 crore.

Net NPAs were also trimmed to 5.77 per cent (Rs 9,036.46 crore) from 7.63 per cent (Rs 11,534.46 crore).

Provisions for bad loans and contingencies during the reported quarter rose to Rs 3,130.33 crore from Rs 2,178.33 crore put aside for the year-ago quarter.

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Punjab National Bank posts net profit in Q4; NII rises 48%

 

State-owned lender Punjab National Bank (PNB) on Friday reported standalone net profit of Rs 586 crore for the quarter ended March 31, 2020 (Q4FY21). The lender had posted a profit of Rs 506 crore in the previous quarter (Q3FY21), and a standalone loss of Rs 697 crore during the corresponding period last year (Q4FY20).

On a sequential basis, the net profit rose 16 per cent.

The Delhi-based lender's net interest income -- the difference between interest earned through lending and interest paid to depositors -- rose 48.3 per cent to Rs 6,938 crore for the period under review. It was Rs 4,677 crore in the same quarter a year earlier.

The bank’s gross non-performing assets (NPAs) increased to 14.12 per cent in the March quarter, compared with 12.99 per cent in the previous quarter. Meanwhile, its net non-performing assets (NPAs) stood at 5.73 per cent.

The total income of the bank during the quarter stood at Rs 22,531 crore as compared with Rs 16,388 crore in the year-ago period.

The bank made provisions for NPAs to the tune of Rs 5,293 crore for the period under review. This is higher by 15 per cent as compared to the provisions of Rs 4,618 crore in the same period, a year ago

As of March 31, 2021, the Capital Adequacy Ratio (CAR) of the lender stood at 14.32 per cent.

"The current coronavirus situation continues to be uncertain and the Bank is evaluating the impact on an ongoing basis. The extent to which the Covid-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive," the lender said in a filing.

The lender's deposits at the end of March quarter stood at Rs 11 trillion as compared with Rs 7 trillion in the year-ago period.

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Bank of India posts Rs 250 crore profit in Q4

State-owned Bank of India has on Friday reported Rs 250 crore profit for the March quarter compared to a loss of Rs 3571 crore in the year ago period, thanks to lower provisions against bad loans.

The bank's net interest margin, a key profitability parameter, has fallen to 2.01% for the quarter as against 2.90%.

Operating profit dipped 21% at Rs 2094 crore from Rs 2653 crore while interest income fell 9% at Rs 9327 crore over the year-ago period's Rs 10,528 crore, the bank said in a regulatory filing.

About 4.5 times lower provisions including those to cover bad loans saved the day for the bank. The bank made provisions of Rs 1831 crore during the quarter against Rs 8142 crore last time with improvement in asset quality over the one year period. Gross non-performing assets ratio stood at 13.77% at the end of March, compared with 14.78% a year back. The ratio however rose from December 2020's 13.25%.

Provisions coverage ratio however remained healthy at 86.24% compared with 83.75% over the same period.

The bank's advances shrunk 1.5% to Rs 4.1 lakh crore as of end of March, on account of contraction in overseas lending to Rs 48,075 crore from Rs 58,852 crore while dometic lending grew a modest 1.35 to Rs 3.6 lakh crore. The muted credit growth is largely due to 15% fall in corporate loan demand.

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Bank of Baroda(BoB) Q4 reports net loss in Q4

 

Bank of Baroda today reported a net loss of Rs 1,047 crore due to a sharp rise in provisions for bad loans in the quarter and deterioration in asset quality on a reported basis.

Analysts had expected the state-owned bank to report a net profit of Rs 1,042.6 crore for the reported quarter.

The bank’s provisions for bad loans rose 44 per cent on-year during the quarter to Rs 4,593 crore. At the same time, the lender’s gross non-performing assets ratio stood at 8.87 as against 8.48 a quarter ago on a reported basis. The net NPA ratio was at 3.09 per cent as compared to 2.39 per cent reported in the previous quarter.

The lender’s bottomline was also affected by a sharp rise in tax expense to Rs 3,726 crore as against a tax write-back of Rs 2,230 crore in the year-ago quarter.

The public sector lender’s net interest income in the quarter rose 4.5 per cent on-year to Rs 7,107 crore. The non-interest bearing business had a stellar quarter as income rose 71 per cent on-year to Rs 4,848 crore.

Bank of Baroda’s pre-provision operating profit rose 27.3 per cent on-year to Rs 6,266 crore for the quarter ended March. Net interest margin of the lender deteriorated on-year by three basis points to 2.73 per cent.

The lender’s loan book grew 4.9 per cent on-year during the quarter to Rs 6.4 lakh crore, while deposits climbed 6.2 per cent to Rs 8.6 lakh crore. However, the retail loan portfolio showed firm growth of 14.4 per cent on-year to Rs 1.2 lakh crore

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Karur Vysya Bank Q4 net profit rises 23%

Private sector Karur Vysya Bank on Friday posted nearly 23 per cent rise in its net profit at Rs 104 crore in the last quarter of the fiscal ended March 2021, on account of good growth in retail loan portfolio as well as gold loan.Provisions for bad loans and contingencies too fell, which helped in profit numbers.

The bank had reported a net profit of Rs 84 crore during the same period of the preceding fiscal year FY20.

Total income during Q4 FY21, however, fell to Rs 1,565.78 crore from Rs 1,803.15 crore in the year-ago same quarter.For the entire fiscal year 2020-21, its net profit jumped by about 53 per cent to Rs 359 crore from Rs 235 crore in 2019-20, Karur Vysya Bank said in a regulatory filing.Full-year (2020-21) income was also down at Rs 6,527.07 crore, as against Rs 7,144.60 crore in FY20.

Bank''s total business grew by nearly 8 per cent to Rs 1.16 lakh crore as of March 31, 2021. The lender said credit growth during the year was higher at 8.87 per cent and gross advances reached Rs 52,820 crore.

"Credit growth resulted from improved offtake in retail and business segment as well as higher growth witnessed in the jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels," it said in a release.

Jewel loan portfolio grew by 39 per cent during the year and stands at Rs 12,852 crore at end of March 2021.On asset side, the bank registered decline in gross non-performing assets (NPAs) at 7.85 per cent of the gross loans by end of FY21 from 8.68 per cent by FY20. In value terms, the gross NPAs fell to Rs 4,143 crore from Rs 4,213 crore.

Net NPAs or bad loans improved to 3.41 per cent (Rs 1,719 crore) from 3.92 per cent (Rs 1,809 crore), backed by consistent follow-up and recovery measures, the bank said.Provisions for bad loans and contingencies for the reported quarter fell to 71.45 crore from Rs 429.27 crore parked aside for the year-ago period.

The board of directors of the bank has recommended dividend of Rs 0.50 per equity share for the financial year ended March 31, 2021, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the bank, it said.

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Indian Bank reports huge net profit in Q4

 

Indian Bank on Friday reported a net profit of Rs 1,708.85 crore in the March-ended quarter. The lender had posted a net loss of Rs 217.74 crore in the same quarter of the preceding financial year 2019-20.

Sequentially, the bank had posted a net profit of Rs 514.29 crore in the December quarter of the financial year 2020-21.

The bank said figures of March 31, 2020, are related to standalone Indian Bank financing for the pre-amalgamation period, hence not comparable with the post amalgamation financials of December 2020 and March 2021.

The erstwhile Allahabad Bank was amalgamated into Indian bank with effect from April 1, 2020.

Total income during the January-March quarter of 2020-21 increased to Rs 10,647.87 crore. It was Rs 6,334.37 crore in the same period of 2019-20, Indian Bank said in a regulatory filing.

For the full year of the financial year 2020-21, the net profit of the bank was recorded at Rs 3,004.68 crore. In the previous financial year, the bank had a total income of Rs 753.36 crore. The total income for the year was Rs 45,185.04 crore. Income in the preceding fiscal was at Rs 24,717.43 crore.

On the asset quality front, the bank's gross non-performing assets (NPAs) or the bad loans stood at 9.85 per cent of the gross advances by end of March 31, 2021. It was 6.87 per cent by March 2020.

In value terms, the gross NPAs of the bank stood at Rs 38,455.35 crore as against Rs 14,150.84 crore.

Net NPAs too rose at 3.37 per cent (Rs 12,271.13 crore) from 3.13 per cent (Rs 6,184.24 crore).

The bank made provisions for bad loans and contingencies worth Rs 1,752.48 crore for the March 2021 quarter. In the year-ago period, it was Rs 1,891.86 crore.

The board of directors of the bank has recommended a dividend of Rs 2 per equity share for the financial year 2020-21, the bank said.

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City Union Bank Q4 net profit reports at Rs 111 crore

Private sector City Union Bank has reported net profit at Rs 111.18 crore for the quarter ending March 31, 2021. The Tamil Nadu-based bank had reported a net loss at Rs 95.29 crore during corresponding quarter previous year, the City Union Bank said in a BSE filing.

For the year ending March 31, 2021, net profits of the bank grew to Rs 592.82 crore from Rs 476.31 crore.

Total income for the quarter ending March 31, 2021 was at Rs 1,121.43 crore as compared to Rs 1,220.98 crore registered in the same quarter last year.

For the year ending March 31, 2021, total income stood at Rs 4,839.45 crore as against Rs 4,848.54 crore during corresponding period last year.

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Karnataka Bank Q4 net profit up 15%

Private sector lender Karnataka Bank on Wednesday posted an all time high annual net profit of Rs. 483 crore for the financial year 2020-21, registering a 12% growth over the previous year’s revenues.

The net profit for the fourth quarter ended March 2021 is Rs. 31.36 crore, a 15% jump over the previous year. The bank’s board also recommended a dividend of 18%.

“This turned out to be the best result under the unprecedented tough conditions triggered by Covid-19 pandemic,” Bank’s managing director Mahabaleshwara MS said in a press release.

The business turnover of the bank was at Rs. 1,27,348 crore as on March 31, 2021. The deposits stood at Rs. 75,655 crore and advances at Rs. 51,694 crore. The CASA deposits grew 15% and reached an all time high of 31% of total deposits as on March 31, 2021.

Mahabaleshwara said vaccinations coupled with other measures including restructuring by the RBI will help needy borrowers and the banking sector overcome the challenges posed by the pandemic.

The bank also announced the appointment of Balakrishna Alse S, a former executive director of Oriental Bank of Commerce, as an additional director on its board.

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Uco Bank Q4 net profit jumps nearly five-fold

 

State-owned Uco Bank reported nearly five-fold jump in net profit at Rs 80 crore for the March quarter largely riding on treasury gains. Net profit was Rs 17 crore in the year ago period.

The bank also made Rs 167 crore net profit for the full financial year after continuous loss in the previous five financial years.

Operating profit grew 26% at Rs 1533 crore as against Rs 1217 crore over the same period. Its net interest income rose 12.6% at Rs 1413 crore against Rs 1255 crore while other income including earnings from treasury rose 78% at Rs 1370 crore from Rs 769 crore over the same period.

The bank's board approved a plan to raise up to Rs 3,000 crore by selling shares to help the lender create a capital buffer as suggested by the Reserve Bank of India to ward off the pandemic-led stress. Its capital adequacy ratio stood at 13.74% with core capital at 11.14% at the end of March.

Uco, which is 94.4% owned by the government, said that it would contemplate a follow-on public offer (FPO), qualified institutional placement or preferential issue for capital raising.

The bank's advances grew by 3% to Rs Rs 1.18 lakh crore at the end of March. Gross non-performing assets improved to 9.59% from 16.77% a year back with net NPA falling to 3.94% from 5.45%. The provision coverage ratio rose to 88.4% from 85.5% earlier

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South Indian Bank back in black on lower provisioning

South Indian Bank on Friday reported a net profit of Rs 6.79 crore for the fourth quarter of FY21, against a loss of Rs 143.69 crore in the year-ago period, largely because of lower provisioning for bad loans. Provisions and contingencies for the fourth quarter stood at Rs 412.29 crore, compared with Rs 723.80 crore in the corresponding period of FY20 and Rs 499.48 crore in Q3 of FY21.

The Thrissur based lender had reported a net loss of Rs 91.62 crore during the third quarter of FY21. For the whole FY21, the bank has reported a net profit of Rs 61.91 crore, against Rs 104.59 crore in FY20.

The asset quality deteriorated, with GNPA ratio seen at 6.97%, compared to 4.90% in the preceding quarter and 4.98% in the year-ago period. Net NPA ratio for Q4 was at 4.71%, against 2.1% in Q3 and 3.34% in Q4 of FY20.

The provision coverage ratio improved from 54.22% to 58.73% on a year-on-year (y-o-y) basis.

Murali Ramakrishnan, MD & CEO, said the bank has been able to meet the targeted levels of recovery or upgrades which have helped in containing the GNPA level despite higher slippages during the year on account of Covid.

He added that the lower quarterly profit was mainly on account of credit cost on the fresh slippages during the fourth quarter, as a result of additional stress in the economy due to the pandemic.

The capital adequacy ratio stood at 15.42% as on March 31, 2021. The lender raised Rs 240 crore during the quarter which strengthened the common equity.

Total deposit base at the end of the March quarter is seen higher by 9% y-o-y at Rs 69,827 crore, while advances declined by 9% to Rs 59,418 crore.

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State Bank of India(SBI) Q4 net profit jumps 80% YoY

 State Bank of India(SBI) today reported a record net profit of ₹6451 crore for the quarter ended March 31, 2021, helped by lower provisions for bad loans. The fourth quarter profit is a big jump from ₹3,581 crore in the year-earlier quarter. The central board of the bank has also declared a dividend of Rs. 4.00 per equity share for the financial year ended 31st March,2021, its first payout since May 2017, when it had rewarded shareholders with ₹2.6 per share. The date of payment of dividend is fixed on 18th June, 2021, the bank said.

India's biggest bank, State Bank of India (SBI) today reported a record net profit of ₹6451 crore for the quarter ended March 31, 2021, helped by lower provisions for bad loans. The fourth quarter profit is a big jump from ₹3,581 crore in the year-earlier quarter. The central board of the bank has also declared a dividend of Rs. 4.00 per equity share for the financial year ended 31st March,2021, its first payout since May 2017, when it had rewarded shareholders with ₹2.6 per share. The date of payment of dividend is fixed on 18th June, 2021, the bank said.

According to a Bloomberg estimate of 10 analysts, the public sector lender was expected to report a profit of ₹6,166.2 crore in the three months to March, up from ₹3,580.8 crore in the same period last year.

According to a Bloomberg estimate of 10 analysts, the public sector lender was expected to report a profit of ₹6,166.2 crore in the three months to March, up from ₹3,580.8 crore in the same period last year.

The lender reportedly received a windfall of nearly 40 billion rupees as part of dues owed by bankrupt steelmaker Bhushan Power and Steel.

Provisions for bad loans slid 16.6% to ₹9914 crore.

On Covid impact, the bank said: "The spread of the pandemic across the globe has resulted in decline in economic activities and increase in movement in financial markets. In this situation, Bank is gearing up itself on all fronts to meet the challenges. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis. Major challenges for the Bank could be from extended working capital cycles, fluctuating cash flow trends and probable inability of the borrowers to meet their obligations against the loans timely."

"The bank is proactively providing against the challenges of likely stress on the bank's assets. A definitive assessment of the impact of COVID-L9 is dependent upon circumstances as they evolve in the subsequent period."

SBI shares, which are up about 40% so far this year, were trading marginally higher at ₹385.95 in late trade today.

Most Indian banks have reported strong numbers for the final quarter of the last financial year on a lower base and as retail lending picked up before the second coronavirus wave. Collections and credit growth have since been hit and lenders are now on a "wait-and-watch" mode.

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Canara Bank Q4 result: reports net profit

 

Canara Bank swung to profit in March quarter as it reported a net profit of Rs.1,011 crore in Q4FY21 as compared to Rs.3,259 crore of net loss posted in the same quarter last year. The bank's net interest income (NII) rose 68.4% to Rs.5,589 crore as against Rs.3,318 crore year-on-year (YoY).

The asset quality deteriorated as the gross non-performing assets (NPA) stood at 8.93% versus 7.46% on a sequential basis while the net NPAs stood at 3.82% as compared to 2.64%. Provisions and contingencies fell to Rs.4,134 crore from Rs.5,375.38 crore on a yearly basis.

Canara Bank's other income in Q4 jumped to Rs.5,207 crore from Rs.2,174.95 in the corresponding quarter of the previous fiscal.

The bank said that the ongoing Covid situation continues to be uncertain and it is evaluating the situation on an ongoing basis. The major identified challenges for the Bank would arise from eroding cash flows and extended capital cycles.

Despite the challenges, the management believes that no adjustments are required in the financial results as it does not significantly impact the current quarter. Despite these events and conditions, there would not be any significant impact on Bank's results in future and going concern assumptions as at presently made, it ad.

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DCB Bank Q4 profit rises 13%

 

Private lender DCB Bank on Saturday reported a 13 per cent increase in net profit to Rs 78 crore for the January-March quarter compared to that of Rs 69 crore in the year-ago quarter. Total income of the bank during the January-March quarter of 2020-21 fell to Rs 971 crore from Rs 1,012 crore in the same quarter of 2019-20, DCB Bank said in a regulatory filing. The income from interest as well as from investment fell during the reported quarter from a year ago.

For the FY2020-21, the bank's net profit remained nearly flat at Rs 336 crore against Rs 338 crore in FY20. Income also was a tad down at Rs 3,917 crore in FY21 against Rs 3,928 crore in FY20.

The bank's asset quality worsened with the gross non-performing assets (NPAs) spiking to 4.09 per cent of the gross advances as of March 31, 2021, as against 2.46 per cent by the end of March last year.

In value terms, the gross NPAs stood at Rs 1,083.44 crore, significantly higher than Rs 631.51 crore in the year-ago period.

Provisions for bad loans and contingencies in Q4FY21 came down to Rs 101.18 crore from Rs 118.24 crore a year earlier. Net NPAs stood at 2.29 per cent (Rs 594.15 crore) as against 1.16 per cent (Rs 293.51 crore).

On returning the compound interest to eligible borrowers post the Supreme Court final order in March and subsequent the RBI notification, the lender said it is in the process of account by account calculation of interest relief due to the eligible customers.

In the meantime, as of March 31, 2021, the bank has created liability towards estimated interest relief of Rs 10 crore and reduced the same from the interest income.

The bank said it held contingency provision of Rs 229.11 crore against the likely impact of Covid 19 regulatory package, impact of the conclusion of the interim order (of Supreme Court on not declaring accounts as NPAs till August 31, 2020 and after) and other contingencies.

On the impact of second wave of the pandemic, it said under the current circumstances the bank during March quarter, on a prudent basis, has made a contingency provision of Rs 124 crore towards further likely impact of Covid-19 on restructured and stressed assets.

"In addition to this contingency provision of Rs 124 crore, the bank also holds floating provision amounting to Rs 108.80 crore, besides, provisions for standard assets and specific non-performing assets," it said.

Besides, the amount in overdue categories where the moratorium or deferment was extended as of March 31, 2020 was Rs 1,908.08 crore at end of March this year, it said. The provisions held on these by the end of September 2020 was Rs 68 crore and similar amount was kept as provisions adjusted against slippages (NPA and restructuring), DCB Bank said.

The lender also said that its board has not recommended any dividend for fiscal ended March 2021 in view of the situation developing around Covid-19 in the country and the related uncertainty that it creates.

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IDFC First Bank Q4 Profit jumps 78%

 

IDFC First Bank on Saturday reported a 78 per cent jump in net profit at Rs 128 crore for the fourth quarter ended March 2021. The private sector lender had posted a profit of Rs 72 crore during the corresponding January-March quarter a year ago.

Total income during the fourth quarter rose to Rs 4,834 crore as against Rs 4,576 crore during the same period of FY20, IDFC First Bank said in a regulatory filing.

On the asset front, the gross non-performing assets (NPAs) or bad loans as a percentage of gross loans as on March 31, 2021, increased to 4.15 per cent from 2.60 per cent by year ago same period.

At the same time, net NPAs too rose to 1.86 per cent as against 0.94 per cent in March 2020.As a result provision (other than tax) and contingencies rose to Rs 603 crore as compared to Rs 412 crore in the same quarter a year ago.

In Q4 FY21, the bank released Rs 324 crores from provisions made for one telecom account based on mark to market value of the instruments and made additional provisions of Rs 375 crore for COVID-19 which is carried forward to the next financial year for the unprecedented situation arising due to COVID-19 second wave in India, it said.

For the full year 2020-21, the bank posted a profit of Rs 452 crore as against loss of Rs 2,864 crore in the previous fiscal.Total income during the year rose to Rs 18,221.5 crore from Rs 18,029.7 crore in the previous year.

"Including the equity capital of Rs 3000 crore raised through QIP on April 6, 2021, our overall capital adequacy is strong at 16.32 per cent. We maintain high levels of liquidity with liquidity coverage ratio of 153 per cent," IDFC First Bank MD V Vaidyanathan said.

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RBL Bank reports 34% drop in Q4 net profit as provisions rise

Private sector lender RBL Bank Ltd on Tuesday reported a net profit of ₹75.3 crore for the three months to March, down 34% from the same period last year owing to lower net interest income and higher provisions.

Its profits were lower than ₹102 crore estimated by a Bloomberg poll of seven analysts. The bank’s total provisions stood at ₹766 crore in Q4 FY21, up 27.5% from the same period last year.

The bank’s net interest margin (NIM), a key measure of profitability, stood at 4.17% in the March quarter, down 2 basis points (bps) sequentially. Its net interest income (NII) or the difference between interest earned and expended declined 11% y-o-y to ₹906 crore in Q4 FY21. The bank said there was an interest reversal of ₹85 crore in Q4 and a similar quantum in Q3 as well. That apart, Q4 also saw an additional burden of ₹13 crore for compound interest waiver for the six-month moratorium period.

As a percentage of total loans, gross non-performing assets (NPAs) stood at 4.34%, compared to 1.84% in the previous quarter. Its net NPAs were at 2.12% in the March quarter, compared to 0.71% in the previous quarter.

“We are confident of managing future asset quality outcome at prudential level. We therefore are well positioned for decent growth in FY22 and beyond," said Vishwavir Ahuja, chief executive, RBL Bank.

Ahuja said that having recognized and adequately provide for the stress emanating from identified pool of corporate accounts in FY20, the slippages during FY21, were primarily, almost 80%, from the retail segment owing to the impact of covid-19.

RBL Bank’s total deposits rose 26% y-o-y to ₹73,121 crore in Q4 FY21. Its current and savings account (Casa) deposits grew 36% y-o-y and ₹23,264 crore in the March quarter. Its net advances stood at ₹58,623 crore as on 31 March 2021, up 1% y-o-y. Retail loans witnessed a growth of 13% in Q4 FY21 against the same period last year.

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Kotak Mahindra Bank Q4 results: Net Profit Rises 33%

 

Kotak Mahindra Bank reported a 33% year-on-year increase in standalone profit to Rs 1,682.4 crore in the quarter ended March 2021. The lender clocked 8% year-on-year rise in net interest income to Rs. 3,843 crore for the quarter. Net Interest Margin (NIM) for Q4FY21 was at 4.39%. Operating profit for the quarter recorded at Rs 3,407 crore, up 25% from Rs 2,725 crore in Q4FY20.

The average savings deposits with the bank grew by 27% to Rs 108,812 crore for FY21 compared to Rs 85,656 crore for FY20. Average Current Account deposits grew by 17% to Rs 39,481 crore for FY21 compared to Rs 33,699 crore for FY20.

Advances were Rs 223,689 crore in Q4FY21, 4.5% quarter-on-quarter rise from Rs 214,103 crore in December quarter. Customer assets, which includes advances and credit substitutes, were Rs 238,857 crore as during March 31, up 4.4% from Rs 228,809 crore in Q3FY21.

CASA ratio as at March 31, 2021 stood at 60.4% compared to 56.2% as at March 31, 2020. “CASA and TDs below Rs 5 crore as at March 31, 2021, constituted 91% of total deposits (86% as at March 31, 2020). TD Sweep deposits as at March 31, 2021 were 7.5% of total deposits (6.6% as at March 31, 2020)," the lender said in a statement.

The gross non-performing assets ratio stood at 3.25% during Q4FY21 compared to 3.27% in the previous quarter. Net NPA ratio declined to 1.21%, from 1.24% in the previous quarter.

“COVID related provisions as at March 31, 2021 stood at Rs 1,279 crore. In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, as at March 31, 2021, the bank has implemented, for certain eligible borrowers, restructuring of Rs 435 crore," Kotak Mahindra said in a statement.

“Consolidated PAT for FY21 increased to Rs 9,990 crore from Rs 8,593 crore in FY20 up 16% and for Q4FY21 increased to Rs 2,589 crore from Rs 1,905 crore in Q4FY20 up 36%," the lender said in a statement. For FY21, the Bank’s contribution to the consolidated PAT was Rs 6,965 crore. Net contribution of the subsidiaries & associates stood at 30% of the consolidated PAT, it further added.

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Yes Bank Q4 net loss widens marginally

 

Private lender Yes Bank's standalone net loss widened marginally to Rs 3,788 crore in the March quarter of FY21 as against net loss of Rs 3,668 crore a year ago. The lender posted net profit of Rs 148 crore in the December quarter.

Deposits rose 55 per cent on an annual basis to Rs 1.62 trillion. Net interest income declined 23 per cent to Rs 987 crore as against Rs 1,274 crore in the year-ago period.

"FY21 was the year of rebuilding the foundation of YES Bank. Bank demonstrated significant improvement in performance across key indicators despite severe headwinds of Covid-19 and moratorium imposed on the bank in March 2020," the lender said on Friday in a stock exchange filing.

Provisions rose 7.5 per cent during the quarter to Rs 5,240 crore as compared to Rs 4,872 crore in March 2020.

Despite elevated slippages, the bank has prudently made accelerated provisioning reflected in the Provision Coverage Ratio (PCR) for NPA at 79 per cent, said YES Bank.

On Friday, the bank's scrip on NSE closed 0.7% higher at Rs 14.60.

During the quarter, the total income of the bank declined to Rs 4,805.30 crore from Rs 5,818.59 crore in the same period a year ago, Yes Bank said in a regulatory filing.

At the same time, provisions (other than tax expense) and contingencies rose to Rs 5,239.59 crore as compared to Rs 4,872.34 crore.

On the asset front, the bank's gross non-performing assets (NPAs) as of March 31, 2021 stood at 15.41 per cent of the gross advances, slightly down from 16.80 per cent in the year-ago period.

However, net NPAs rose to 5.88 per cent from 5.03 per cent in the year-ago period.

For the full 2020-21 fiscal, the bank narrowed its net loss to Rs 3,462.23 crore from a loss as high as Rs 16,418.02 crore in the previous year.

Total income during the year also witnessed a decline to Rs 23,382.56 crore from Rs 29,508.10 crore a year ago.

The bank said proactive provisioning of Rs 250 crore towards COVID-19 related restructuring (Rs 2,500 crore) is expected to be implemented in first quarter of the current fiscal.

"Deferred tax asset of Rs 9,354 crore as at March 31, 2021 is carried in the balance sheet, as basis financial projections approved by the Board of Directors, there is reasonable certainty of having sufficient taxable income to enable realization of the said deferred tax asset as specified in Accounting Standard 22 (Accounting for Taxes on Income)," it said.

The current second wave of COVID-19 pandemic has resulted in reimposition of localised lockdowns in various parts of the country, it said, adding the extent to which the pandemic will impact the bank's results will depend on ongoing as well as future developments, which are highly uncertain.

On March 5, 2020, the Reserve Bank had imposed a moratorium on the troubled private sector lender, including capping withdrawals at Rs 50,000 per depositor, after it found that the new management was unable to raise the urgent core capital which had fallen much below the mandated level.

Later, the Union Cabinet cleared a rescue package for the bank involving a Rs 7,250 crore investment by the State Bank of India (SBI). Four private lenders also committed an additional Rs 3,100 crore as part of the rescue plan.

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IDBI Bank back in black in FY21 after five years

LIC-controlled IDBI Bank turned profitable in the fiscal ended March after five years, posting a net profit of Rs.1,359 crore for the year.

In 2019-20, the lender had posted a net loss of Rs.12,887 crore. IDBI Bank is back in black after five years, said the lender.

In the last quarter of the fiscal year 2020-21, the bank reported an almost fourfold jump in its net profit to Rs.512 crore, IDBI Bank said in a press release

The bank, which came out of the RBI’s prompt corrective action (PCA) framework earlier in March, said its turnaround strategies led to the transformation.

Total income during Q4FY21 rose to Rs.6,969.6 crore from Rs.6,924.9 crore in the same period of 2019-20.

The full year income, however, was down to Rs.24,557 crore against Rs.25,295 crore.

Gross NPA (non-performing asset) ratio improved to 22.4% as on March 31 against 27.5%. Net NPA ratio improved to 1.9% from 4.2%

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