Bank of Maharashtra(BoM) Q4 results: Net profit jumps nearly three times

 

State-owned Bank of Maharashtra reported nearly three times jump in net profit for the fourth quarter at Rs 165 crore owing to the rise in net interest income and recovery from written off accounts which more than offset the additional Rs 508 crore provision to cover the pandemic-related risks.Its net profit was Rs 57 crore in the year ago period.

The bank is expecting to grow its credit book by around 15% this year, as against the 13% rise seen last year, and will be looking to raise equity to support credit expansion. The size of equity raising for the full year has not been firmed up while the bank’s board has created an enabling resolution to raise up to Rs 5,000 crore. Its advances portfolio stood at Rs 1.08 lakh crore.

Bank managing director AS Rajeev attributed the sharp rise in net profit to “all round performance”. He expressed hope that the impact of the second wave might not be severe like last year, when the economic activities plummeted amid prolonged national lockdowns.

Its operating profit grew 2.6 times at Rs 1,540 crore from Rs 595 crore in the year ago period, supported by 35% rise in net interest income at Rs 1,383 crore. Net interest margin, a parameter to gauge profitability, improved to 3.1% for the quarter under review as against 2.4% in the year ago period.

The lender recovered Rs 738 crore from errant borrowers and this includes recovery from written off accounts. Recovery from written off accounts adds to the profit as these were fully provided for.

The bank’s fee based income rose 22% to Rs 315 crore while other income jumped 86% to Rs 727 crore.

Its asset quality improved with gross non-performing assets ratio falling to 7.23% at the end of March against 12.81% a year back. Net NPA was 2.48%, improved from 4.77% over the same period. It has however made 44% higher provision at Rs 1,311 crore which includes taking additional cover against the possibility of further economic stress on account of the second wave of pandemic.

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ICICI Bank Q4 net profit rises 260%

Private lender ICICI Bank on Saturday reported 260 per cent jump in standalone net profit at Rs 4,403 crore for the quarter ended March 31, 2021. The profit figure stood at Rs 1,221 crore for the same period last year.

Net interest income (NII) increased by 17 per cent year-on-year to Rs 10,431 crore in Q4FY21 from Rs 8,927 crore in Q4FY20.

The bank’s total capital adequacy at March 31, 2021 was 19.12 per cent and Tier-1 capital adequacy was 18.06 per cent as compared to the minimum regulatory requirements of 11.08 per cent and 9.08 per cent respectively.

"The current second wave of Covid-19 pandemic, where the number of new cases has increased significantly in India, has resulted in re-imposition of localised/regional lockdown measures in various parts of the country. The impact, including credit quality and provision, of the Covid pandemic, on the bank and the Group, is uncertain and will depend on the spread of Covid, the effectiveness of current and future steps taken by the governments and central bank to mitigate the economic impact. The bank's capital and liquidity position is strong and would continue to be a focus area for the bank during this period," said ICICI Bank in a stock exchange filing.

The lender's gross non-performing assets (NPAs) declined sequentially at 4.96% in Q4FY21. In Q3FY21, gross NPA of the bank was 4.38%. Meanwhile, net NPAs of the lender stood at 1.1% in the March quarter as against 0.6% a quarter ago.

The net interest margin was 3.84 per cent in Q4FY21 as compared to 3.67 per cent in the quarter ended December 31, 2020 and 3.87 per cent in Q4FY20.

Total income (standalone) of the bank rose to Rs 23,953 crore in January-March from Rs 23,443.66 crore in the year-ago quarter, ICICI Bank said in a regulatory filing.

On a consolidated basis, the net profit of the private sector lender jumped to Rs 4,886 crore in the March quarter from Rs 1,251 crore in the last quarter of 2019-20.

Income on a consolidated basis rose to Rs 43,621 crore from Rs 40,121 crore for the reported quarter.

Provisions for bad loans and contingencies were cut to Rs 2,883.47 crore for the reported quarter, from Rs 5,967.44 crore parked aside in year ago same quarter.

The lender's Board has recommended a dividend of Rs 2 per share.

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HDFC Bank reported 18.2 per cent up in Y-o-Y profit

HDFC Bank reported an 18.2 per cent on-year jump in standalone net profit to Rs 8,186.51 crore for the January-March quarter of FY21. The company had posted a profit of Rs 6,927.6 crore in the corresponding quarter of the previous year. Amid the second COVID-19 wave, the company informed that its board has considered it prudent to currently not propose a dividend for the financial year ended March 31, 2021. India’s largest private sector lender’s Net Interest Income (NII), the difference between interest earned through lending and interest paid to depositors, witnessed a 12.6 per cent on-year rise to Rs 17,120 crore in the quarter under review, as compared to Rs 15,204 crore in the same period last year.

The Bank’s net revenues (net interest income plus other income) rose to Rs 24,713 crore in the fourth quarter of FY21 from Rs 21,236 crore in the previous year.

HDFC Bank Q4 results:

HDFC Bank maintained a healthy liquidity coverage ratio at 138 per cent, which was well above the regulatory requirements.

Operating expenses in the January-March 2021 quarter, stood at Rs 9,181.3 crore, a jump of 10.9 per cent over Rs 8,277.8 crore during the corresponding quarter of the previous year.

The cost-to-income ratio for the quarter ended March 31, 2021, was at 37.2 per cent as compared to 39 per cent in the year-ago period.

Other income (non-interest revenue) came in at Rs 7,593.9 crore, which was 30.7 per cent of net revenues in the fourth quarter of FY21 and grew by 25.9 per cent over Rs 6,032.6 crore in the quarter ended March 31, 2020.

Total deposits of the HDFC Bank stood at Rs 13 lakh crore, a rise of 16.3 per cent over March 31, 2020. CASA deposits increased by 27 per cent with savings account deposits at Rs 4.03 lakh crore and current account deposits at Rs 2.12 lakh crore.

HDFC Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines stood at 18.8 per cent in the March quarter of 2021 (against 18.5 per cent as on March 31, 2020), as against a regulatory requirement of 11.075 per cent.

Gros non-performing assets were at 1.32 per cent of gross advances as on March 31, 2021, as against 1.38 per cent as on December 31, 2020, and 1.26 as on March 31, 2020.

HDFC Bank’s distribution network was at 5,608 branches and 16,087 ATMs/ cash deposit and withdrawal machines (CDMs) across 2,902 cities or towns.

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