DCB Bank Q3 net profit up 12.3%
Private sector lender DCB Bank on Saturday reported an increase of 12.31 percent in its net profit at Rs 96.70 crore for the third quarter ended December 2019. Its net profit was Rs 86.10 crore in the October-December period a year ago, DCB Bank said in a BSE filing.
DCB Bank's total income was up 13.66 percent at Rs 990.89 crore during the quarter under review as against Rs 871.78 crore in the corresponding period a year ago.
Net interest income increased 9.86 percent to Rs 323 crore as against Rs 294 crore for the same period last fiscal year.
While non-interest income marginally declined to Rs 93 crore against Rs 94 crore.
ICICI Bank Q3 net surges 158%, asset quality improves
ICICI Bank on January 25 registered a healthy 158.4 percent year-on-year (YoY) growth in Q3FY20 profit, driven by lower provisions and recoveries from non-performing loans (NPLs).
Higher other income, net interest income (NII) and pre-provision operating profit (PPoP) also aided profitability for the country's largest private sector lender.
Net profit increased significantly to Rs 4,146.46 crore during the quarter, from Rs 1,604.91 crore in the same period last year.
NII during the quarter grew by 24.3 percent YoY to Rs 8,545.32 crore with loan growth of 13 percent YoY (to Rs 6.35 lakh crore) and 37 bps improvement in net interest margin.
Domestic advances grew 16 percent YoY and retail loan grew 19 percent YoY, the bank said, adding net interest margin for the quarter stood at 3.77 percent, higher from 3.64 percent in September quarter and 3.4 percent in December quarter 2018.
Total deposits increased by 18 percent to Rs 7.16 lakh crore, wherein CASA deposits grew 15 percent and term deposits grew 24 percent YoY.
Asset quality improved sequentially with gross non-performing assets (NPAs) as a percentage of gross advances falling 42 bps to 5.95 percent and net NPA declining 11 bps to 1.49 percent in the quarter ended December 2019.
"Overall numbers, barring a marginal increase in the watchlist, were very good on all cards. Provisions have not gone up which is a good comfort. There has been sizeable recovery during the quarter. Even reported net interest margin was higher," Siddharth Purohit of SMC Institutional Equities told CNBC-TV18.
In absolute terms, gross NPAs, as well as net NPAs, fell 4.8 percent each sequentially to Rs 43,453.86 crore and Rs 10,388.5 crore in Q3FY20 driven by better recoveries and upgrades, but slippages were higher on the quarter-on-quarter basis (QoQ).
"Recoveries, upgrades and other deletions excluding write-offs, from NPLs were Rs 4,088 crore in Q3FY20," ICICI Bank said, adding the gross additions to NPAs were Rs 4,363 crore for the quarter (against Rs 2,482 crore in the previous quarter).
The Bank's fund-based and non-fund based outstanding to borrowers rated BB and below (excluding non-performing assets) was Rs 17,403 crore during the quarter, higher compared to Rs 16,074 crore as of September 2019.
"Slippages are slightly elevated but recoveries in large accounts helped the bank contain its gross NPAs for the quarter. The increase in watchlist might be due to not only telecom exposure, but also its broking exposure which might be the case that classified under borrowers BB and below rated," Darpan Shah of HDFC Securities said.
Provisions and contingencies for the quarter at Rs 2,083.2 crore dropped sharply by 16.9 percent QoQ and 50.9 percent YoY.
Other income (non-interest income) increased 17.8 percent to Rs 4,573.98 crore YoY as fee income grew by 17 percent to Rs 3,596 crore and treasury income rose by 11 percent YoY.
Pre-provision operating profit jumped 22.8 percent to Rs 7,548.63 crore compared to the corresponding quarter last fiscal.
ICICI Bank said its consolidated profit grew by a whopping 149.2 percent YoY to Rs 4,670 crore in Q3FY20. "ICICI Life showed a 1.7 percent YoY growth in profit, ICICI General 23 percent, ICICI Securities 35.6 percent and ICICI Prudential AMC 55.6 percent," the bank said.
Its consolidated assets grew by 11 percent YoY to Rs 13.04 lakh crore for the quarter ended December 31, 2019.
Bank of Baroda(BoB) posts surprise loss in Q3
Public sector lender Bank of Baroda (BoB) on Friday reported a net loss of ₹1,407 crore for the three months to December, owing to higher provisions for bad assets.
The bank's loss came as a surprise to the market as a Bloomberg poll of 18 analysts had estimated a profit of ₹683.4 crore.
On 1 April, 2019, Bank of Baroda merged with two other state-owned banks, Dena Bank and Vijaya Bank. The bank provided comparable numbers for FY19's December quarter by adding individual numbers for the three individual banks. The profit for the amalgamated entity stood at ₹436 crore in Q3FY20.
BoB's provisions rose 54% on a year-on-year basis to ₹6,365 crore. The bank's gross bad loan ratio, total bad loans as a percentage of total advances, fell 48 basis points (bps) y-o-y to 10.43%. Its asset quality pressures continued in the December quarter as loans worth ₹10,387 crore turned non-performing. Of this, ₹4,509 crore was owing to RBI's divergence report that found under-reporting of bad loans.
"We have had a bit of a rough quarter because of the impact of the divergence, which was there on the provision and on the profit but if you look at the yoy figure they seem to stand out well," said Sanjiv Chadha, chief executive, Bank of Baroda.
According to S.L. Jain, executive director, Bank of Baroda, majority of the fresh slippages originated in sectors of chemical, power and non-banks. While slippages from a loan in the chemical sector was about ₹2,700 crore, two power accounts and three non-banks contributed to slippages of ₹1,000 crore and ₹2,900 crore, respectively.
Its net interest income, or the difference between the interest earned on loans and paid on deposits, increased 9% y-o-y to ₹7,128 crore in Q3 FY20. The bank's net interest margin (NIM), a measure of profitability, stood at 2.8%, up 18 bps from the same period last year.
Jain said that the bank's total exposure to the telecom sector is at ₹4,100 crore. He added that most of it are in two companies that have closed operations and have "very little" loans to Vodafone-Idea.
"For the two defunct telecom companies, we have provided for 100% of our loans," said Jain.
The public sector lender's domestic advances grew 0.67% Y-o-Y to ₹5.44 trillion, led by retail loan growth of 15.31% Y-o-Y. It's domestic deposits grew 1.3% Y-o-Y to ₹7.82 trillion. Jain said that corporates have repaid ₹9,954 crore in Q3, of which non-banking financial companies (NBFCs) accounted for ₹2,399 crore.
The bank's capital adequacy ratio under Basel III norms stood at 13.48% at the end of the December quarter.
Indian Bank Q3 profit jumps 62%
State-owned Indian Bank on Friday reported 62.3 percent jump in net profit at Rs 247.16 crore for December quarter 2019-20, mainly due to reduction in bad loans.
The bank's profit in the year-ago period stood at Rs 152.26 crore. Total income during the quarter under review was Rs 6,505.62 crore, up from Rs 5,269.10 crore in the same period a year ago, Indian Bank said.
The bank's net non-performing assets (NPAs) as a percentage of assets reduced to 3.5 percent during October-December 2019-20 from 4.42 percent in the year-ago period.
Similarly, the percentage of gross NPA was lower at 7.2 percent as against 7.46 percent.
In absolute terms, net NPAs stood at Rs 6,487.58 crore. This compares with Rs 7,571.07 crore in the third quarter of
the last financial year.
The bank further said it had made provisioning of Rs 1,529.26 crore towards bad loans and contingencies. During
October-December 2018-19, the provisioning stood at Rs 923.67 crore.
The bank has provided Rs 1,004 crore for divergence in provisioning and also re-classified three standard accounts
amounting to Rs 184 crore as fresh NPA, Indian Bank said.
Briefing reporters, Indian Bank Managing Director and CEO Padmaja Chunduru said the third-quarter results were very
much in line with expectations.
"If you recall last quarter also we were talking of building the balance sheet strength and its resilience. I think that is very visible this quarter because there is secular growth across all verticals," she said.
To a query, she said the fresh NPA was from an account of DHFL and added the bank has more control over such accounts.
She said the net interest income and other income were under control while gross NPA was maintained at the same level of last quarter.
Chunduru said the bank during the quarter surpassed the Rs 4 lakh crore business mark during the quarter ending
31 December 2019.
Following the Centre's move to merge Indian Bank with Allahabad Bank, she said the business mark would double in
size by June 2020.
"The growth in business has been faster in the last two years and we expect it would be very fast going forward also,"
she said.
Asked if a name has been decided following the merger with Allahabad Bank, Chunduru said "we have discussed with
Allahabad Bank, we are discussing with our own staff and their staff."
"The name would be acceptable to everyone and would be something reflecting the country's own ethos. As of now Indian Bank name appeals to everyone," she said.
She said information technology major Tata Consultancy Services has been roped in as the IT partner for both the
banks (Indian Bank and Allahabad Bank) as the core banking system of both the banks were on same platform.
RBL bank Q3 net profit dips 69%
Private sector lender RBL Bank Ltd on Wednesday reported a 69% on a year-on-year (y-o-y) decline in its net profit to 70 crore for the three months ended December, largely because of a surge in provisions.
The bank’s total provisions almost quadrupled y-o-y to ₹638 crore in Q3 FY20. Sequentially, provisions rose 20% from ₹533 crore in the September quarter of the current fiscal.
Net interest income – difference between interest earned and interest expended – stood at ₹923 crore, up 41% from the same period last year. The bank’s net interest margin, a key measure of profitability, was at 4.57% in Q3, up 45 basis points (bps) y-o-y.
Vishwavir Ahuja, chief executive, RBL Bank Ltd, in a statement, said, “challenges in a few corporate accounts and related provisioning requirements have impacted the bottomlime for the quarter".
The bank’s asset quality deteriorated in the December quarter, with gross bad loans as a percentage of total loans moving up 195 bps y-o-y to 3.33%. On an absolute basis, gross non-performing assets (NPAs) almost trebled y-o-y to ₹2,010 crore. The bank’s net NPA ratio was up 135 bps y-o-y.
“We are digesting this short-term pain and are looking to put this behind us over the next few months," said Ahuja.
In an interview to Mint on 17 January, Ahuja had said that despite not having exposure in some well-known cases of bad debt, the bank still faced trouble in three to four accounts. “We were not in Infrastructure Leasing & Financial Services (IL&FS), DHFL, Essar, Cox and Kings, CG Power, or Jet Airways and many others. However, we still got caught in 3-4 cases, which were all double AA companies," Ahuja had said.
Meanwhile, RBL Bank witnessed a net credit growth of 20% y-o-y to ₹59,635 crore. Its total deposits grew 21% y-o-y to ₹62,907 crore at the end of the December quarter and the current and saving accounts (CASA) ratio rose to 26.79%, up 222 bps.
As of 31 December, 2019, the bank’s capital adequacy under Basel III stood at 15.66%. In the quarter under review, RBL Bank raised equity capital of ₹2,701 crore.
Axis Bank Q3 net profit up 4.5%, misses estimates
Axis Bank Ltd on Wednesday said its net profit rose 4.5% year-on-year to ₹1,680.85 crore on the back of higher net interest income. Net profit was, however, lower than the ₹2,073.4 crore estimated by 22 analysts polled by Bloomberg.
Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 15.16% to ₹6,452.98 crore from ₹5,603.67 crore in the corresponding period last year.
Other income, which includes core fee income, fell 5.35% on year to ₹3,786.57 crore in the three months ended December.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 5% in the December quarter compared with 5.03% in the September quarter and 5.75% in the year-ago December quarter.
Provisions during the quarter increased 13.6% to ₹3,470.92 crore as against ₹3,054.51 crore in the year-ago quarter. In the July-September quarter, the bank had set aside ₹3,518.39 crore in provisions.
Post provisions, net NPA ratio was at 2.09% against 1.99% in July-September and 2.36% in the year-ago quarter.
