Latest Bank Update

IL&FS lenders looking at a 10-15% haircut; BoI, SBI, PNB & Yes Bank staring at a hit: Report

October 03, 2018 Bank of India, IL&FS, NCLT, News&Articles, Punjab National Bank, state bank of india, Yes Bank 1 comment

Lenders to the beleaguered IL&FS group are looking at a 10-15 percent haircut in many of its projects as buyers will bargain hard, The Economic Times reports. A group of banks, led by Bank of India (BoI) and State Bank of India (SBI), have lent IL&FS Rs 34,480 crore, which is a part of its consolidated debt of Rs 91,000 crore.

BoI has the highest exposure to the debt-ridden firm with loans of Rs 2,388 crore, followed by SBI at Rs 2,140 crore and Punjab National Bank at Rs 1,859 crore. Yes Bank has the largest exposure within private sector banks, with loans worth Rs 1,841 crore, as per a Kotak Institutional Equities report.

Experts believe the Centre’s decision to overhaul the company’s board and appoint a new, six-member team led by Uday Kotak, has improved the lenders’ chances of recuperating their money, but haircuts are unavoidable, the report said.

The loans will be restructured and the asset monetisation process will lead to a delay in payments, Abizer Diwanji, Partner, Financial Services at EY, told the paper. “You also have to consider the mark-to-market losses on these loans. It is fair to assume some haircuts for lenders in the short term,” he added.

The National Company Law Tribunal (NCLT) has ordered the newly-formed board to meet on or before October 8. The board is yet to come up with a financial plan which will include monetising some assets and restructuring loans.

A banker with a UK-based bank which has an exposure of about Rs 200 crore told the paper that they are confident of recovery, now that the government has stepped it. They also deemed it premature to assume a haircut at present as government intervention has boosted creditor confidence.

Others in the banking industry said open projects on the ground which can be monetised give the lenders confidence. Calling it a short term liquidity issue, bankers think this problem can be resolved through capital infusion and loans by government-backed entities. Also, there are many interested parties for IL&FS’ roads, power and energy-linked projects.

“Once the liquidity issue is resolved, the board will get more time and they can take a few months to a year to offload some projects,” a banking official told the paper.

Yes Bank Q1 profit jumps 31% with robust loan growth

July 26, 2018 Private Banks, Q1 Results, Q1FY19, Results, Yes Bank No comments

Private sector lender Yes Bank started off the year 2018-19 on a strong note with profit growth of 31 percent in June quarter but asset quality weakened.

Profit for the quarter stood at Rs 1,260.4 crore, which increased from Rs 965.52 crore in corresponding period last fiscal. The profitability was driven by NII, other income and operating income but higher provisions limited growth.

Net interest income during the quarter grew by 23 percent year-on-year to Rs 2,219.14 crore with robust loan growth of 53.4 percent but net interest margin contracted to 3.3 percent (from 3.7 percent in Q1FY18 and 3.4 percent in Q4FY18).

"Advances grew by 53.4 percent YoY to Rs 2,14,720.1 crore on the back of robust growth across corporate, IBU, MSME and retail businesses. Retail banking advances grew by 105.2 percent YoY to 14 percent of Advances (up from 10.5 percent as on June 30, 2017)," the bank said.

Deposits during the quarter rose 42 percent YoY to Rs 2,13,394.5 crore with CASA ratio at 35.1 percent on the back of 35.7 percent YoY growth. "Saving account deposits at Rs 46,597.5 crore) and current account deposits (Rs 28,332.5 crore) posted strong growth of 26.9 percent and 53.1 percent YoY respectively," the bank said.

Other income (non-interest income) shot up 50 percent to Rs 1,694 crore and operating profit surged 44 percent to Rs 2,455 crore compared to same quarter last year. Tax expenses spiked 26 percent to Rs 568.7 crore YoY. Asset quality weakened for the quarter ended June 2018 with gross non-performing assets (NPA) rising to 1.31 percent against 1.28 percent in previous quarter, though net NPA was lower at 0.59 percent versus 0.64 percent sequentially.

In absolute term, gross NPA increased 8 percent quarter-on-quarter to Rs 2,824.5 crore while net NPA declined 4 percent to Rs 1,262.6 crore QoQ. Slippages for the quarter stood at Rs 560 crore, which increased compared to Rs 380.2 crore reported in the previous quarter. Out of which Rs 314.8 crore is expected to be fully recovered before September 2018 (supported by liquid/marketable securities), the bank said.

Total stressed book (NNPA + net security receipts + standard restructured exposure) declined steadily to 1.52 percent (Rs 3,283 crore from 1.73 percent (Rs 3,535 crore) sequentially.

The bank has not sold any loans to asset reconstruction companies in the quarter. "During the quarter one security receipt investment with carrying value of Rs 103.1 crore was fully redeemed in line with bank’s expectation of redemptions/ recoveries of 30-40 percent during FY19."

Standard restructured exposure for the quarter stood at Rs 249.4 crore, declined compared to Rs 337.6 crore in the March quarter. Yes Bank said out of exposure to NCLT (National Company Law Tribunal) list 1 accounts (which is only 0.01 percent of gross advances), it has recovered Rs 184 crore from one account. Consequently, it has residual exposure to only one account with an exposure of Rs 23.4 crore (funded exposure only), classified as NPA and provisioning coverage of 50 percent. "We expect to fully recover this exposure."

Under NCLT list 2 accounts (which is 0.31 percent of gross advances), its total exposure stood at Rs 654.7 crore across 7 accounts. Out of which entire funded exposure aggregating to Rs 568 crore (across 3 accounts), is classified as NPA and has provision coverage of 43 percent, it said.

Provisions and contingencies spiked 57 percent quarter-on-quarter (119 percent year-on-year) to Rs 625.6 crore for the quarter ended June. Provision coverage ratio improved to 55.3 percent from 50 percent sequentially, but declined compared to 60 percent in June 2017.

"Provisions stood at Rs 625.7 crore of which Rs 379.9 crore is NPA provisioning which includes Rs 149.0 crore towards increase in provision coverage to 55.3 percent and Rs 92.7 crore is towards MTM losses on Bonds. MTM losses of Rs 278.0 crore will be amortized during FY19 under the RBI dispensation," the bank reasoned.

Yes Bank Q4 result, profit rises 29%

April 26, 2018 Private Banks, Q4 Results, Q4FY18, Results, Yes Bank No comments

Yes Bank Ltd on Thursday reported a 29% jump in its March quarter net profit due to higher net interest income and other income.

Net profit for the quarter stood at Rs1,179.44 crore against Rs914.12 crore a year ago. According to 21 Bloomberg analysts’ estimates, the bank was expected to post a profit of Rs1,085.40 crore.

Net interest income (NII), or the core income a bank earns by giving loans, increased 31.4% to Rs2,154.24 crore as against Rs1,639.70 crore last year. Other income was at Rs1,420.97 crore, up 0.13% from Rs1,257.39 crore a year ago.

Provisions and contingencies rose 29% to Rs399.64 crore in the quarter from Rs309.73 crore a year ago. On a quarter-on-quarter basis, they fell 5.16% from Rs421.32 crore.

The divergence in gross bad loans, the difference between Reserve Bank of India’s assessment and that reported by the lender, stood at around Rs6,355.20 crore at end March 2018, while divergence in provisions was at Rs1,535.90 crore.

Yes Bank’s gross non-performing assets (NPAs) as assessed by the Reserve Bank of India (RBI) stood at Rs8,373.80 crore as of March 2017, the bank said. It had reported gross NPAs of Rs2,018.60 crore as on March 2017. Gross non-performing assets (NPAs) advanced 30.13% to Rs2,626.80 crore at the end of the March quarter.

However, the bank said the net impact of fiscal year 2017 diversion has been duly reflected in FY18 earnings. The bank also said that it has recognized the entire net mark to mark loss on investments in respective quarters.

As a percentage of total loans, gross NPAs stood at 1.28% as compared to 1.72% in the previous quarter and 1.52% in the year-ago quarter. Net NPAs were at 0.64% in the March quarter compared to 0.93% in the previous quarter and 0.81% in the same quarter last year.

Advances for the quarter rose 53.9% from a year ago to Rs 2.04 trillion while deposits gained 40.5% to Rs 2.01 trillion.

Yes Bank Q3 profit rise by 22%

January 18, 2018 Private Banks, Q3 results, Q3FY18, Results, Yes Bank No comments

Yes Bank on Thursday reported a 22% rise in its fiscal-third quarter profit on higher net interest income and other income.

Net profit rose to Rs1076.87 crore for the quarter ended 31 December from Rs882.63 crore a year ago. According to Bloomberg survey of 15 analysts, the bank was expected to post a profit of Rs 1,075.50 crore.

Net interest income (NII) or the core income a bank earns by giving loans increased 26.8% to Rs1888.80 crore compared with Rs1489.33 crore last year. Other income was at Rs1422.26 crore, up 39.91% from Rs1016.52 crore a year ago.

Yes Bank Q2 profit jumps 25% despite sharp spike in provisions

October 26, 2017 Private Banks, Q2 Results, Q2FY18, Results, Yes Bank No comments

Private sector lender Yes Bank has reported a profit growth of 25 percent year-on-year at Rs 1,002.7 crore despite sharp spike in provisions, but asset quality deteriorated on sequential basis.

Profit in quarter ended September 2017 stood at Rs 801.54 crore.

Net interest income, the difference between interest earned and interest expended, shot up 33.5 percent to Rs 1,885.1 crore compared with Rs 1,412.16 crore in same quarter last fiscal.

YES Bank cuts staff by almost 2,500, cites redundancies

September 22, 2017 Bank staff, News&Articles, Private Banks, Yes Bank No comments

Private lender YES Bank has gone in for "rationalisation" of workforce to address certain "redundancies", the company has said.

According to reports, the bank has reduced its workforce by nearly 2,500 on account of digitisation and automation.Although YES Bank did not put a specific number, it said digital transformation has created certain redundancies requiring rationalisation of workforce.

Yes Bank Q1 net profit jumps 32% YoY to Rs 965.52 crore

July 26, 2017 Private Banks, Q1 Results, Q1FY18, Results, Yes Bank No comments

Yes Bank reported better than expected earnings for the quarter ended June 30 mostly on all the key parameters and the asset quality has also shown considerable improvement on a quarter-on-quarter basis (QoQ).

The private sector lender reported 31.9% year-on-year (YoY) rise in net profit for the quarter ended June to Rs 965.5 crore which was higher than the CNBC-TV18 estimate of Rs 919 crore. Yes Bank reported a net profit of Rs 731.80 crore for the corresponding quarter last year and Rs 914.12 crores in the previous quarter.

Yes Bank Q4 result, Profit jumps 30% to Rs914.12 crore

April 19, 2017 Private Banks, Q4 Results, Q4FY17, Results, Yes Bank No comments

Private sector lender Yes Bank Ltd on Wednesday said its March quarter net profit rose 30.2% due to higher net interest income and other income.

Net profit for the quarter stood at Rs914.12 crore as compared with Rs702.11 crore a year ago. A Bloomberg poll of 24 analysts had forecast a net profit of Rs791 crore.

Net interest income (NII), or the core income a bank earns by giving loans, increased 32.08% to Rs1639.70 crore from Rs1241.44 crore last year. Other income jumped 56.62% to Rs1257.39 crore from Rs802.81 crore in the same period last year.

Top 10 Private Banks in India 2017

March 09, 2017 Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Karur Vysya Bank, Kotak Mahindra Bank, News&Articles, Private Banks, RBL Bank, Top Banks, Yes Bank 49 comments

Banking corporations are considered as the most prominent institution if we talk about private sector firms. We have scrutinized Top 10 Private Banks In India 2017 for the customers who are looking for best private banks with high interest rate. Now your wait is over, check out below given amazing private banking corporations along with saving accounts and interest rate details. The Private Banks Have earned popularity amongst people and achieved a special niche in the world of banking. These banks are known for highly competitive outlook and technological superiority. Check Out private Banks in India from below This Page.

Yes Bank Q3 result, Profit rises 30.62%

January 19, 2017 Private Banks, Q3 results, Q3FY17, Results, Yes Bank No comments

Yes Bank Ltd on Thursday said its net profit for the December quarter rose 30.62% from a year ago due to higher net interest income and lower provisions.

Net profit for the quarter stood at Rs882.63 crore compared to Rs675.74 crore a year ago. According to 17 analysts polled by Bloomberg, net profit forecast was at Rs822.10 crore.

Net interest income (NII), or the core income that a bank earns by giving loans, increased 30.3% to Rs1,507.50 crore. Other income increased to Rs998.35 crore—a rise of 33.81%.

Provisions and contingencies fell 28.6% to Rs115.38 crore in the quarter from Rs161.67 crore a quarter ago. On a year-on-year basis, it declined 22%.

The bank said it did not sell any loans to asset reconstruction companies, not made any additional restructuring and not refinanced additional account via 5:25 during the quarter.

Yes Bank Q2 result, Profit up 31%; NII jumps 30%

October 20, 2016 Private Banks, Q2 Results, Q2FY17, Yes Bank No comments

Private sector lender Yes Bank's second quarter earnings surpassed analysts' expectations on Thursday, with the profit rising 31.3 percent year-on-year to Rs 801.5 crore despite higher provisions.

Sequential growth was 9.5 percent. Net interest income, the difference between interest earned and interest expended, during the quarter grew by 30.5 percent to Rs 1,446.2 crore year-on-year on the back of robust growth in advances and CASA.

Net interest margin inched up 10 basis points to 3.4 percent on yearly basis but on sequential basis, it was unchanged. Yes Bank said advances in Q2 registered a 37.7 percent growth year-on-year and 4 percent quarter-on-quarter while deposits grew by 28.9 percent and 4.4 percent in same periods.

Corporate banking accounted for 67.9 percent of the advances portfolio, while retail & business banking constituted 32.1 percent during the quarter. Profit was estimated at Rs 770.1 crore and net interest income at Rs 1,379 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

CASA (current-saving account) growth during the quarter was 53.2 percent YoY and 6.9 percent QoQ with CASA ratio crossing 30 percent mark for the first time to 30.3 percent (up 25.5 percent in Q2FY16), the bank said in its filing. Other income (non-interest income) shot up 43.6 percent to Rs 887.85 crore and operating profit rose by 36 percent to Rs 1,386 crore on yearly basis.

Yes Bank Q1 Result, Profit up 33%, revenue in-line; asset quality stable

July 27, 2016 Private Banks, Q1 Results, Q1FY17, Results, Yes Bank No comments

Private sector lender Yes Bank Wednesday reported 32.8 percent rise in net profit to Rs 731.8 crore during the first quarter ended June.

The bank's net profit during April-June quarter of the previous fiscal was Rs 551.20 crore.

Total income also increased to Rs 4,762.8 crore in the first quarter of 2016-17 as against Rs 3,797.02 crore in the same period of previous fiscal.

However, bank's asset quality slipped during the period under review, with gross Non-Performing Assets (NPAs) rising to 0.76 percent of the gross advances as against 0.46 percent a year ago.

Similarly, net NPAs or bad loans also inched up to 0.29 percent, from 0.13 percent of net advances.

Net interest margin (NIM), the key gauge of profitability, expanded to 3.4 percent in the first quarter of the current fiscal, from 3.3 percent in the year-ago period, Yes Bank said in a statement.

Yes Bank Q4 Net Profit Grows 27% To Rs 702 Crore

April 27, 2016 Private Banks, Profit, Q4 Results, Q4FY16, Results, Yes Bank No comments

Private lender Yes Bank on Wednesday reported a 27.4 per cent rise in its stand-alone net profit at Rs 702.1 crore for the fourth quarter ended March.

Net profit stood at Rs 551 crore in the corresponding quarter of 2014-15. Its total income has increased to Rs 4,331.1 crore for the quarter ended March, up 17.7 per cent, from Rs 3,678.8 crore for the March quarter of 2015, it said in a BSE filing.

The bank's net interest income (NII) in January-March went up by 27.1 per cent to Rs 1,241.4 crore while non-interest income grew 36 per cent to Rs 802.8 crore.

Yes bank's total provisioning against bad loans in the said quarter climbed 47.6 per cent to Rs 186.5 crore compared with Rs 126.4 crore in the same quarter of 2014-15.

Top 10 Private Banks in India 2016

February 01, 2016 Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IndusInd Bank, J & K Bank, Karur Vysya Bank, Kotak Mahindra Bank, Private Banks, Top Banks, Yes Bank No comments

In Indian economy Private bank is the most regulated sector and most of the citizens prefer private banks because these banks provide quality services to their customers. They generate more profit than most of the nationalized banks and thus these banks have great importance in countries national income. These banks are famous for quality based products and customer centric service. If you are hungry for the best private sector banks, then don’t miss to read this article. Here is a valuable list of top 10 best private banks India.

1. HDFC Bank

HDFC Bank or Housing Development Finance Corporation Limited is the number one bank in India according to the market capital and is in 5^th position according to assets value. It is the first private bank in India that received RBI approval to establish a bank. It has more than 3200 branches all over India and 12000+ ATM’s. At present the bank is dealing these services: FOREX services, Loans, Insurance, Credit cards, Private Banking, Premium Banking etc.

2. ICICI Bank

According to the quantity of assets, ICICI Bank or the Industrial Credit and Investment Corporation of India is the 2^nd largest private bank that was formed in 1994. In 2014, the bank was awarded with the best bank by Global Business Development. The bank has current assets value is 99 billion USD and all over India it has 3540 branches and 11200 ATM’s. At present the bank is dealing these services: Privilege Banking, NRI Accounts, Credit cards, Insurance, Loans, etc.

3. Axis Bank

Formally known as UTI Bank, Axis bank is also a leading private bank in India that is operating its service from 1994. It occupies 3^rd position in Indian banking market. This bank deals with the services like: customer and corporate banking, insurance and finance, credit cards, mortgage loans, investment banking, wealth management, credit cards etc.

4. Kotak Mahindra Bank

Formally the bank was known as Kotak Mahindra Finance Limited and was established in 1995 and got license to run banking business in 2003. The bank is available not only in Metro Cities but available also in Tier-2 cities. At present the bank is dealing these services: NRI Banking, Privileged Banking, Insurance and Finance, Wholesale Banking etc.

5. Yes Bank

In the list of 10 top best banks, Yes bank occupies 6^th position. In January 2004, the bank was founded by Rana Kapoor and it’s headquarter is in Mumbai. This is one of the fast growing private banks in India with 500 branches in more than 350cities. In 2013 the bank was awarded with Golden Peacock Award for its Corporate Social Responsibility. At present the bank is dealing these services: Commercial Banking, Corporate and Institutional Banking, Investment Banking, Branch Banking etc.

6. Federal Bank

This bank was founded in the year 1947 and was formally known as Travancore Federal Bank. The founder of this bank is Mr. K P Hormis. The bank has more than 1000 branches all over the country. From its first day of operation the bank is striving for excellence in customer service. At present the bank is dealing these services: Insurance and NRI Banking, Corporate Banking, Loans etc.

7. Karur Vysya Bank

Karur Vysya Bank is also a well-known figure in this top 10 best private bank list. The bank was founded by M.A. Venkatarama Chettiar and Athi Krishna Chettiar in 1916. It’s headquarter is in Karur, TamilNadu. This is also a scheduled commercial bank in India that is famous for excellent customer service. Karur Vysya Bank has more than 550 branches in 18 states.

8. IndusInd Bank

The bank was founded in 1994 by Srichand P. Hinduja. He was the Chairman of the Hinduja Group. It’s headquarter is in Mumbai, Maharashtra. The name of the bank came from the name of the Indus Valley Civilization. This bank is better known for retail banking.

9. J&K Bank

This bank was founded in 1938 in Srinagar and started its operation in 1939. For four decades it has a record of continuous profit.

10. Bandhan Bank

It is an Indian banking and financial services company. It’s headquarter is in Kolkata. Along with IDFC Bandhan is also the newest private bank in India. Bandhan receives its license from RBI in 2014 and started its operation in early 2015.