UCO Bank Q4 Standalone net profit down 9.5%

UCO Bank on Monday said that its board has approved the issuance of fresh equity shares with a face value of Rs 4,000 crore in the current fiscal year.

The Kolkata-based bank also reported a standalone net profit of Rs 525.77 crore for the fourth quarter ended March 2024, a decrease of 9.5 per cent compared to the corresponding period last year.

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Subject to shareholder approval, the lender will explore various methods like QIP (Qualified Institutional Placement), FPO (Follow-on Public Offer), etc, for issuing 400 crore equity shares of Rs 10 each, the bank informed bourses.  

This issuance may occur in multiple tranches during FY25. The capital infusion is expected to support the bank's growth plans.

UCO Bank's total income for the quarter grew by 17.44 per cent to Rs 6,984.61 crore. The bank also witnessed an improvement in asset quality, with gross NPA falling to 3.46 per cent compared to 4.78 per cent a year ago.

The lender further declared a dividend of Rs 0.28 per share for FY24.

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Central Bank of India Q4 Profit jumps 41%

Central Bank of India on Tuesday reported a standalone a 41.38 per cent jump in standalone profit at Rs 807.34 crore for the fourth quarter of the financial year 2023-24 (Q4 FY24). The bank had reported a net profit of Rs 571.03 crore for the same period last year. Sequentially this was a 12.46 per cent increase from Rs 717.86 crore in Q3.

The bank reported standalone total income at Rs 9,698.74 crore for Q4. This is a 13.2 per cent increase from Rs 8,567.45 crore reported during the year-ago period. Quarter-on-quarter (Q-o-Q) total income rose 6.12 per cent from Rs 9,138.93 crore. 

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The gross non-performing assets (NPA) ratio of the bank remained at 4.50 per cent in Q4, same ratio reported in Q3. This was down 8.44 per cent compared to the same period last year, but the same as the quarter-ago period.

Net Interest Income (NII) increased by 10.34 per cent year-on-year (Y-o-Y) to Rs 12,896 crore for 12 months period that ended on March 31, over corresponding period of last year.

Return on Assets (ROA) improved to 0.76 per cent for Q4FY24 as against 0.61 per cent for Q4FY23. ROA improved to 0.63 per cent at the end of FY24, compared to 0.44  per cent at the end of FY23.

Return on Equity (ROE) also improved to 2.92 per cent for Q4FY24 as against 2.27 per cent for Q4FY23. For the entire financial year, ROE improved to 9.53 per cent over  6.42 per cent at the end of FY23.

For the entire financial year, Central Bank of India reported a standalone net profit of  Rs 2,549.06 crore, a 61.1 per cent surge, compared to Rs 1,582.2 crore reported at the end of FY23.

Total income went up 19.6 per cent at Rs 35,433.51 crore for FY24, compared to Rs 29,625.6 crore reported at end of last year.

Provision Coverage Ratio stood at 93.58 per cent, with an improvement of 110 bps, on Y-o-Y basis, the bank said.

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AU Small Finance Bank Q4 Profit falls 13%

 

AU Small Finance Bank on Wednesday reported a 12.7 per cent fall in profit at Rs 371 crore in March quarter due to increased provisions and a one-time expense for acquisition of Fincare. The bank's net profit was Rs 425 crore in the year-ago quarter.Net profit, excluding exceptional items, stood at Rs 428 crore in the fourth quarter of FY24, up 1 per cent compared to Rs 425 crore in the corresponding period a year ago.

The net profit of the bank in the full financial year 2023-24 rose by 7.4 per cent to Rs 1,535 crore as against Rs 1,428 crore in the previous fiscal.During the latest fourth quarter, the bank's total income increased to Rs 3,385 crore as compared to Rs 2,608 crore in Q4 of FY23, AU Small Finance Bank said in a regulatory filing.Net Interest Income (NII) grew 10 per cent to Rs 1,337 crore compared to Rs 1,213 crore in Q4 FY23, it said.

The bank declared a dividend of Rs 1 per share for FY24 subject to shareholders' approval.
Bank's asset quality witnessed a marginal deterioration with gross NPA (non-performing asset) at 1.67 per cent in March 2024 as against 1.66 per cent in March 2023.

Net NPA stood at 0.55 per cent of net advances in March 2024 as against 0.42 per cent in the year-ago period.As a result, provisions and contingency increased to Rs 132 crore from Rs 40 crore in the fourth quarter of preceding fiscal.

Besides, there was a one-time exceptional expenditure during the quarter. The expense amounting to Rs 76.80 crore, including stamp duty, has been incurred in relation to the acquisition and merger of Fincare Small Finance Bank, it said.

Considering the size, nature or incidence of these expenses, the same has been disclosed as exceptional item in the balance sheet, it added.During the reporting quarter, former RBI Deputy Governor H R Khan was appointed as chairman of the AU Small Finance Bank.The bank, during the quarter, started offering products and services to customers under the Authorized Dealer Category I (AD Cat-I) licence.

Sanjay Agarwal, founder, MD & CEO, of AU Small Finance Bank, said, "Our performance in the current quarter has remained absolutely on track with deposit growth outpacing advances growth, margins broadly remaining within our guided range and asset quality continuing to be robust." 

The merger with Fincare has received all regulatory approvals in record time, and from April 1, the merged entity has been operational as per the RBI's direction, he said.

The focus now shifts to ensuring a smooth and seamless integration within the next 9-12 months and delivering exceptional banking services and value to the customers, he said.

To ensure seamless transition and minimal customer disruption due to the merger, both the tech-led banks with their strong customer orientation have established a dedicated task force and equipped their call centres to answer all customer queries, he added.

AU Small Finance Bank (AU SFB) last month amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector.In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with the effective date of April 1, 2024.With the merger, the bank now has 2,383 physical touchpoints across India.

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IDFC First Bank Q4 results: Net profit falls 10%

IDFC FIRST Bank on Saturday reported 10 per cent decline in net profit at Rs 724 crore for the fourth quarter ended March 2024 due to substantial jump in provisions.

The lender had earned a net profit of Rs 803 crore in the year-ago period.

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Total income rose to Rs 9,861 crore from Rs 7,822 crore a year ago, IDFC FIRST Bank said in a regulatory filing. Interest income grew to Rs 8,219 crore during the period under review, from Rs 6,424 crore in the corresponding quarter a year ago.Net Interest Income (NII) grew 24 per cent from Rs 3,597 crore in Q4FY23 to Rs 4,469 crore in Q4FY24, it said.

ALSO READ: RBL Bank Q4 results: PAT jumps 30% to Rs 353 crore

On the asset quality side, the bank's gross Non-Performing Assets (NPAs) reduced to 1.88 per cent of gross advances as of March 31, 2024, from 2.51 per cent by the end of March 2023.Net NPAs also came down to 0.60 per cent of the advances from 0.86 per cent at the end of 2024.

However, provisions and contingencies increased by 50 per cent to Rs 722 crore in Q4FY24 as compared with Rs 482 crore a year ago.The bank did not declare any dividend for FY24 and FY23.

The capital adequacy ratio of the bank declined to 16.11 per cent from 16.82 per cent at the end of previous fiscal.

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Biggest Auto Finance Scam in Banking Sector

 

A major financial scam involving a fake ‘Mahindra’ account, over 2,000 ghost customers, and a fraud amounting to Rs.150 crore has been uncovered in Mizoram, making it the largest auto-finance scam in northeast India. The Mizoram Police has successfully busted the gang responsible for the scam, which had been operating for nearly four years, and has arrested 11 individuals, including the alleged mastermind.

The alleged mastermind of the scam was a former employee of Mahindra & Mahindra Financial Services Limited (MMFSL), a company that primarily provides vehicle loans. This individual created fake files for more than 2,000 ghost customers and sanctioned car loans using these fraudulent documents. The scam was made possible through collusion between certain employees and car dealers. The fraudsters exploited loopholes in MMFSL’s oversight process, including KYC verification, process auditing, tele-verification, and supervisory mechanisms, allowing them to continue their illegal activities from 2020 to 2024.

The alleged mastermind, Mr. Hussain, conspired with a few colleagues and opened a fake bank account in 2020 under the name “Mahindra Finance Limited,” which closely resembled the original brand name. This bank account served as a repository for the defrauded money for over three years. Two of Mr. Hussain’s accomplices, Edenthara and Lalthankima, impersonated high-ranking company officials and submitted forged documents to support the creation of the fake bank account. They even went as far as creating fake stamps, seals, and other documents to make the account appear legitimate. The purpose of this account was to receive payments from car dealers involved in the scam.

The Mizoram Police, specifically the Crime Investigation Department (CID), conducted a raid at Mr. Hussain’s residence on March 29, resulting in his arrest. During the raid, law enforcement seized a laptop and several mobile phones as evidence. Subsequently, on April 2, Edenthara and Lalthankima were arrested. During their interrogation, they revealed that Mr. Hussain had prepared fake documents and misrepresented their office designations to open the fake bank account. They also disclosed that Mr. Hussain would remove the fake files from the office and store them at the house of another accomplice, Manoj Sunar. Mr. Sunar received a monthly payment of ₹15,000 for his assistance in carrying out the fraudulent operations. On April 3, Mr. Sunar was arrested, and during a search of his residence, seven sacks containing files from 2022 to 2024 and forged stamps were recovered.

To avoid suspicion and ensure that the ghost accounts did not become non-performing assets (NPAs), Mr. Hussain and his associates made EMI payments for the fake accounts by withdrawing money from the fake “Mahindra” account. By doing so, they aimed to maintain the appearance of legitimate transactions. The police have frozen 26 ghost bank accounts, totaling nearly ₹2.5 crores, as well as the accounts of car dealers worth ₹1 crore. Additionally, 15 cars worth ₹3 crore have been recovered. Car dealers have directly returned approximately ₹3.47 crores to MMFSL. During the investigation, law enforcement also seized three laptops, ten mobile phones, 549 ghost customers’ files, 25 forged seals, numerous SIM cards, two personal diaries, and various other identity documents.

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Bank Officers Union announces All India strike against New Transfer Policy

The All India Bank of Baroda Officers’ Association has declared a strike in protest against the bank management’s new anti-officer transfer policy. According to the circular, officers who have completed 6 years in the officers’ cadre within their current zone can request a transfer to another zone of their preference after this period. The union views this policy as unjust due to the lengthy 6-year duration and is demanding a reduction in the required duration.

The BOB Officers’ Union has threatened an All India Strike if the revised transfer policy is not revoked. They argue that the current policy imposes undue hardship on officers and are advocating for a more flexible approach to transfers.

• Black Badge/Black ribbon wearing from Monday, 29th April.

• Submission of Memorandum to all Regional Heads addressed to our Bank’s MD&CEO by team of Office bearers/Activists on 30th April 2024 evening.

• Demonstrations outside all Regional Offices on one evening during the period 1st May to 4th May 2024, taking into account the election model code of conduct as applicable in the relevant area.

• All India Strike on 7th June 2024, after General Elections are over. In the meantime, we shall serve Strike Notice to the Bank.

The last year transfer policy/IZT were exercised with criteria of 3 years for lady officers and 4 years for Male officers and now with policy being changed to 6 years, the sudden increase in the minimum relaxation tenure for this IZT(Inter Zone Transfer) exercise is creating panic among the officers and demoralising concerned officers and their family members, who have been posted outside the parent zone during previous IZT exercises.

Earlier officers with age of 55 are eligible for retransfer to their parent zone or to the zone of their choice, now in this IZT policy the age criteria has been increased to 58 years which is ruthless.

The IZT policy eligible period for the employees being 6 years is very long and staying away from families is unbearable, which adversely impact family life of the officer’s.

Since 2019 there is no recruitment in Bank and all previous IZT batches have been retransferred with 3 / 4 years ( lady staff 3 years) criteria, Management’s sudden shift to 6 Years minimum tenure is demoralizing officer employees as there is no work life balance in our bank due to IZT Transfers.

Many of the lady officers were undergoing fertility treatments and still were transferred midway and suffered due to delay in treatment due to IZT Still there are some officers whose IZT request has been rejected in earlier IZT exercises for shortage of a day or two with respect to the cutoff date. But these officers has been identified by the Management during the IZT 2019-20 and relieved late by the respective zonal office/regional office which in turn effected the officers during retransfer to the parent zone.

The Management is thinking that they have given enough concession for women and men under the IZT policy but they have forgotten that most of the employees who have undergone IZT posting have been undergoing physical and mental agony, since many of the officers have left their families back at their parent zone due to health problem of parents/in laws, nontransferable employment of spouse, education problem of children etc. This IZT policy has further demotivated and shut down the hope of these officers of getting back to their family.

Every year all the officers of the bank are obeying the instructions of the top management and undergoing the IZT even though they are facing some personal problems with a hope that they will be transferred back to the parent zone after completion of 3 years’ service.

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RBL Bank posts net profit of ₹352.5 crore in Q4

RBL Bank on Saturday, April 27, reported its fourth quarter results. It's net profit came in at Rs.352.5 crore, which was more than estimates.

The lender's net profit in the March quarter was also 30.1% more than the Rs.271.1 crore net profit it reported in the corresponding period in the previous fiscal.

RBL Bank's net interest income (NII) of Rs.1,599.8 crore in the fourth quarter was lower than Street estimates of Rs.1,604.7 crore. However, it was 17.9% higher than the fourth quarter of the previous fiscal's Rs.1,357.3 crore.

The lender's gross net performing assets decreased 11% to Rs.2,271 crore in the fourth quarter of the 2023-2024 fiscal, compared to the previous year's Rs.2,551 crore. RBL Bank's gross NPA % came down to 2.65% from the previous year's 3.12%

Its net NPA too witnessed a 2.6% decrease to Rs.619.3 crore in the March quarter from the previous year's Rs.635.6 crore. The lender's net NPA% was down 6 bps to 0.74% in the March quarter from the previous year's 0.8%.

Its net NPA too witnessed a 2.6% decrease to Rs.619.3 crore in the March quarter from the previous year's Rs.635.6 crore. The lender's net NPA% was down 6 bps to 0.74% in the March quarter from the previous year's 0.8%.

It's net interest margin (NIM) for the March quarter was 5.45%. In the previous quarter the same was 5.52% and in the fourth quarter in FY23 it was 5.62%.

RBL Bank in a media call stated it expects the first quarter margin for FY25 to be flattish and it expects the NIM to rise by the year-end. The lender added that it will do lateral hiring against deaprtment head resignations that have taken place.

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IndusInd Bank Q4 Results: Net Profit up by 15%

Private sector lender IndusInd Bank recorded a net profit of Rs 2,349 crore for the January-March quarter of fiscal year (FY) 2023-24, up 15 per cent from Rs 2,043 crore in the previous year. The net profit, at Rs 2,349 crore, exceeds the market forecast of Rs 2,261 crore.

In its quarterly statement earlier this month, the bank reported that net loans increased by 18 per cent, exceeding a 14 per cent increase in deposits.

The bank’s gross non-performing asset (NPA) ratio fell to 1.92 per cent from 1.98 per cent in the same period last year. In contrast, net NPA for the quarter was 0.57 per cent, up from 0.59 per cent the previous year.

Also Read |  ICICI Bank Q4 Net Profit Rises 17.4%

Net interest income, or the difference between interest collected and paid, increased 15 per cent to Rs 5,376 crore. The lender’s net interest margin was 4.26 percent, compared to 4.28 percent the previous year.

Sumant Kathpalia, Managing Director & Chief Executive Officer, IndusInd Bank said: “We are looking at growing our branches from the existing 2,800 to 3,500 in the next two years. Our operating expenses jumped in FY24 and we hired around 11,000 employees in FY24. Our total expense in IT is around 8-10 per cent of our total cost to income.”

Operating expenses for the quarter ended March 31, 2024 grew by 24 per cent to Rs 3,803 crores, compared to Rs 3,066 crore for the same quarter the previous year.

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