PNB, Indian Bank, Syndicate Bank likely to launch QIPs this month

At least three state-run lenders—Punjab National Bank (PNB), Syndicate Bank and Indian Bank—are likely to launch their qualified institutional placement (QIP) offerings in the coming weeks, said three people aware of the development. Collectively, these three state-owned lenders are targeting to raise around Rs6,000-7,000 crore.

QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer. Of the three, PNB is likely to be the first to launch its QIP, as early as this week, said one of the three people cited above, requesting anonymity as he is not authorized to speak to reporters.

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Moody’s affirms ratings of 9 banks, downgrades IOB, Central Bank of India

Global rating agency Moody’s today affirmed ratings of nine banks, including Bank of India, Punjab National Bank and Axis Bank, at Baa3/Prime-3, and downgraded the ratings of Indian Overseas Bank and Central Bank of India to Ba3 from Ba1. Other banks whose rating was affirmed are Bank of Baroda, Canara Bank, Oriental Bank of Commerce, Syndicate Bank, Union Bank of India and ICICI Bank. “We continue to position the rated public sector banks in the “very high” government support bucket, reflecting the systemic importance of public sector banks in the country,” Moody’s said in a report.

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Syndicate Bank Q2 profit jumps nearly 28%

State-owned Syndicate Bank on Tuesday reported 27.68% jump in its July-September quarter profit to Rs105.24 crore on annual basis, notwithstanding rise in bad loans.

The Manipal-headquartered bank had posted a profit of Rs82.42 crore in the same quarter of the previous fiscal. The total was income was Rs6,419.21 in the second quarter of the fiscal, down from Rs6,574.93 crore in the comparable period of 2017-18, the bank said in a regulatory filing.

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Syndicate Bank reports Q1 net loss due to bad loans

Public sector Syndicate Bank on Saturday reported a net loss of Rs263.19 crore for the June quarter of the current fiscal due to sharp increase in provisions for bad loans. In comparison, it had reported a net profit of Rs79.13 crore in the June quarter of last fiscal, 2016-17.

The total income during the first quarter of the fiscal also fell to Rs6,171.49 crore, as against Rs6,419.12 crore in the year-ago period, the bank said in a regulatory filing. The bank’s provisioning to cover for bad loans jumped by 79% to Rs1,385.66 crore for the quarter under review, as against Rs774.41 crore a year ago.

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Four banks make presentations to Finance Ministry on consolidation plans

Four state-run lenders — Syndicate Bank, Canara Bank, Vijaya Bank and Dena Bank— have made presentations to the finance ministry on their consolidation plans. Government think tank Niti Aayog has also been asked to offer its suggestions on the amalgamation of public sector banks. A senior government official confirmed both developments. 

The government wants fewer, stronger and bigger state-run banks. State Bank of India absorbed five of its associate lenders and the Bharatiya Mahila Bank in April, creating a larger bank that accounts for a quarter of all outstanding loans. 

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Syndicate Bank Q4 result, profit at Rs103.84 crore

Syndicate Bank on Tuesday reported a net profit of Rs103.84 crore for the fourth quarter of fiscal 2016-17 compared to a loss a year ago on the back of lower provisions and higher other income.

Net profit for the quarter was Rs103.84 crore against a loss of Rs2,158.17 crore a year ago.

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Government demotes two top chief executives of Punjab National Bank and Bank of India

Sunil Mehta has been appointed to head Punjab National Bank, the country's second largest public sector bank, in place of Usha Ananthasubramanian, in a series of changes at public sector lenders. Dinabandhu Mohapatra has been promoted as chief executive officer of Bank of India, replacing Melwyn Rego. 

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Syndicate Bank Q3 result, Profit rises to Rs93 crore

Syndicate Bank on Tuesday reported a profit for the December quarter compared to a loss in the same quarter last year, owing to lower provisioning and higher other income.

Net profit for the quarter was Rs93.56 crore as compared to a loss of Rs119.67 crore a year ago. Three analysts polled by Bloomberg had forecast a net profit of Rs344.80 crore.

Net interest income (NII), or the core income a bank earns by giving loans, decreased 8.23% to Rs1,391.34 crore from Rs1,516.04 crore last year. Other income increased to Rs985.95 crore from Rs551.07 crore in the same period last year, a rise of 78.92%.

Gross non-performing assets (NPAs) rose 5.55% to Rs16,948.08 crore at the end of the December quarter from Rs16,056.73 crore in the September quarter. On year-on-year basis, it jumped 76.49% from Rs9,602.80 crore.Provisions and contingencies dropped 9.19% to Rs784.74 crore in the quarter from Rs864.14 crore a quarter ago. On a year-on-year basis, it lost 8.73% from Rs859.77 crore.

As a percentage of total loans, gross NPAs rose to 8.69% at the end of the December quarter from 7.72% in the previous quarter and 4.61% in the year-ago quarter.Net NPAs rose to 5.63% in the December quarter from 5.03% in the previous quarter and 3.04% in the same quarter last year.

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