Month: October 2021

UCO Bank posts five-fold rise in Q2 profit to ₹205 crore

Banking & Finance

[ad_1]

Read More/Less


UCO Bank, which recently came out of the Prompt Corrective Action (PCA) measure of Reserve Bank of India, registered over five-fold growth in net profit at ₹205 crore for the second quarter ended September 30, 2021, as compared with ₹30 crore same period last year.

According to Atul Kumar Goel, MD & CEO, UCO Bank, the growth in net profit was mainly on the back of a rise in net interest income and lower provisions.

Net interest income grew by 15 per cent to ₹1,598 crore during the quarter under review, as against ₹1,394 crore same period last year. Other income increased by 31 per cent to ₹936 crore (₹713 crore).

Provisions during the quarter came down by nearly 22 per cent to ₹1,019 crore (₹1,301 crore).

The bank came out of PCA in September this year following the compliance of norms by maintaining minimum regulatory capital, net NPA, and leverage ratio on an ongoing basis.

The operating profit increased by 24 per cent at ₹1,334 crore (₹1,076 crore).

Gross non-performing asset (NPA) as a percentage of total advances declined to 8.98 per cent (11.62 per cent). This is despite the fact that the bank recognised its exposure of close to ₹1,440 crore in three big accounts as NPA during the quarter under review. This includes around ₹1,000 crore in Srei Infrastructure and Srei Equipment Finance; around ₹190 crore in Delhi Metro and another ₹250 crore in a road project.

Net NPA came down to 3.37 per cent (3.63 per cent).

Provision coverage ratio (PCR) increased to 90.02 per cent as on September 30, 2021 from 89.82 per cent same period last year and from 88.53 per cent as on June 30, 2021.

RBI resolution framework

UCO Bank has restructured 2,067 accounts amounting to ₹1,356 crore under Resolution Framework 1.0 and another 51,512 accounts amounting to ₹2,705 crore under Resolution Framework 2.0 of RBI.

The bank’s domestic net interest margin improved marginally to 2.9 per cent (2.88 per cent) during the quarter under review. It expects NIM to further improve to around three per cent by the end of this fiscal.

UCO Bank, which grew its advances by around six per cent during the quarter under review, expects close to 10 per cent growth in loan book this fiscal aided by a steady pick up in demand.

“We are out of the Covid impact and there is good demand in retail, agriculture and corporate sectors. We are expecting 10 per cent growth in advances this fiscal,” Goel said.

The bank has also tied up with an NBFC in housing sector for co-lending model.

The bank’s scrip closed at ₹14.38, down by 2.04 per cent on the BSE on Thursday.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

RBL Bank Q2 net profit down 78.6%

Banking & Finance

[ad_1]

Read More/Less


Private sector lender RBL Bank reported a 78.6 per cent drop in its standalone net profit for the second quarter of the fiscal on the back of higher provisions and lower interest income.

For the quarter ended September 30, 2021, the bank reported standalone net profit of ₹ 30.8 crore as against ₹144.16 crore in the same period last fiscal.

Its net interest income fell by two per cent on a year on year basis to ₹915 crore in the July to September 2021 quarter from ₹932 crore a year ago.

Net interest margin was also lower at 4.06 per cent as on September 30, 2021 from 4.34 per cent a year ago.

However, other income shot up by 42 per cent to ₹593 crore for the second quarter of the fiscal from ₹418 crore in the corresponding quarter last fiscal.

Provisions jumped up by 33.6 per cent to ₹651.49 crore in the second quarter of the fiscal versus ₹487.56 crore a year ago.

Asset quality deteriorated

The bank’s gross non performing assets rose to ₹3,130.93 crore or 5.4 per cent of gross advances as on September 30, 2021 from 3.34 per cent a year ago. Net NPAs also increased to 2.14 per cent of net advances from 1.38 per cent as on September 30, 2020.

“The economic environment is bouncing back strongly as the pace of vaccination quickens in the country. Our bank is also confident of reverting to normalised levels of business, growth and profitability from the current (third) quarter itself and are on track to exit this financial year with strong profitability ratios setting us up well for 2022-23,” said Vishwavir Ahuja, Managing Director and CEO, RBL Bank.

The bank had a provision coverage ratio, excluding technical write-offs, of 61.7 per cent.

It had an exposure of ₹846.61 crore to accounts where it implemented restructuring under the Reserve Bank of India’s Resolution Framework 1.0 and ₹645.47 crore under Resolution Framework 2.0.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Bajaj Finance Ltd. Launches Diwali campaign ‘EMI HAI NA’ with a bang, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


With the festive season transpiring in full swing, Bajaj Finance Ltd., in collaboration with Bajaj Finserv Direct Limited, has launched its Diwali campaign ‘EMI HAI NA’ to offer discounts and cashback on a wide range of products and brands purchased on EMI through the Bajaj Finserv EMI Store of Bajaj Finserv Direct Ltd. (www.emistore.com).

Customers can avail of discounts on a slew of electronic products, home appliances, smartphones, smartwatches, furniture, fitness equipment, home decor, accessories, kitchen appliances and much more with minimal down payment. The campaign concludes on the 15th of November 2021.

The campaign has a catchy jingle that addresses the common sentiments of most middle-class Indian consumers when they are faced with the choice of making high-value lifestyle purchases. With the ‘EMI HAI NA’ campaign, the brand enables every customer living in different cities to experience benefits for their shopping aspirations, anytime, anywhere. The campaign encompasses the essence of India being united by one mantra’- #EMIHAINA in the context of repayment of purchases through monthly installments.

Running LIVE across digital platforms, including Bajaj Finserv’s social media channels (like Facebook, Twitter, LinkedIn, YouTube), audio streaming platforms (like Gaana, JioSaavn), radio, infotainment and other OTT channels, the brand has infused a 360-degree strategy to make “EMI HAI NA” synonymous with Bajaj Finserv’s affiliate companies, Bajaj Finance Ltd., and Bajaj Finserv Direct Ltd.

To increase momentum, the company has also created a virtual game where customers can participate in a challenge to score maximum points. The participants will get cashback rewards. The Bajaj Finserv EMI Store also promises a seamless experience through its network of reputed and trusted partners.

In addition to deals, discounts, offers, digital videos, games, dedicated webpage and 3rd party collaborations, the brand also aims to leverage the network of 43,000+ sellers across India, to reduce delivery time with other benefits such as minimal documentation and pre-approved loans*.

Customers can shop directly from their favourite store or online using their “Bajaj Finserv EMI Network Card”.

The campaign is also touted to offer customers to save via different curated rewards and promotions.

Finance is provided by Bajaj Finance Ltd. in its discretion and shall be governed by the loan terms and conditions. Rewards are subject to fulfilment of the promotion terms and conditions.

Bajaj Finance Limited, the lending arm of the Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market, catering to more than 50 million customers across the country.

Headquartered in Pune, the company’s product offering includes Consumer Durable Loans, Lifestyle Finance, Digital Product Finance, Personal Loans, Loan against Property, Small Business Loans, Wallet, Co-branded Credit Cards, Two-wheeler and three-wheeler Loans, commercial lending/SME Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle Refinancing Loans along with Fixed Deposits.

Bajaj Finance Limited prides itself on holding the highest credit rating of AAA/Stable for long term borrowing, A1+ for the short term borrowing, and FAAA/Stable for FD program. It has also been credited for Long term issuer credit rating of BB+/Stable and short-term rating of B by S&P Global ratings for ECB.

This story is provided by NewsVoir. will not be responsible in any way for the content of this article. (ANI/NewsVoir)



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Finance ministry approves 8.5% return on PF deposits for FY21, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


The finance ministry has given its go ahead to 8.5% rate of interest on provident fund deposit for 2020-21 paving way for the Employees’ Provident Fund Organisation to credit the interest in accounts of over 60 million beneficiaries.

The move is expected to bring some cheer a week ahead of Diwali. Labour secretary Sunil Barthwal confirmed the development to ET. “Approval was received from the finance ministry today. It will be notified as soon as possible,” he said.

The labour ministry has to notify the interest rate for the year before EPFO starts crediting it into the beneficiary account.

The move is expected to leave EPFO with a surplus of Rs 300 crore compared to the preceding financial year when it had a surplus of Rs 1000 crore.

The central board of trustees of EPFO, headed by the labour minister, had in March this year approved the interest rate of 8.5% for 2020-21, same as the previous year. However, the labour ministry has to mandatorily seek approval from the finance ministry on the proposed rate. The process was fast tracked after top officials of the labour ministry met finance ministry officials earlier this month to address their queries and asked them to expedite the process.

The finance ministry has over the past few years questioned the higher rate of interest declared by EPFO year after year when the rate of interest for other government schemes including public provident fund or small saving schemes was much lower.

EPFO had pegged an income of around Rs 70,300 crore in the previous fiscal including around Rs 4,000 crore from selling a portion of its equity investments and Rs 65,000 crore from debt.

Based on this, its central board of trustees, headed by the labour minister, had recommended the interest rate of 8.5% for FY21. EPFO had retained the interest rate on PF deposits for 2020-21 same as 2019-20 despite the huge amount of Covid withdrawals from the retirement fund kitty since the scheme was announced last year.

EPFO has an active subscriber base of more than 60 million and every year it invests 15% of its annual accruals in equity and rest in debt instruments. However, since the outbreak of Covid millions of salaried class workers have lost jobs or have been working on reduced wages prompting them to withdraw from their retirement fund kitty under the Covid withdrawal scheme.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Fresh tax notices to FPIs over capital gains, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


The I-T department has asked multiple foreign portfolio investors (FPIs) to cough up more taxes on their capital gains after denying set-off and tax treaty benefits, people aware of the development said. The notices were issued by the Centralised Processing Centre (CPC) of the I-T department under Section 143(1) of the Income-tax Act.

The intimation under Section 143(1) informs taxpayers about initial assessments carried out by the tax department and points out discrepancies in tax filings, and demands additional taxes, if any.

Intimations demanding additional taxes primarily cited three reasons, the sources said. Either the FPIs have been disallowed to set off long-term capital gains against short-term capital losses, or the tax department has not taken tax treaties into consideration, or, in some cases, it has categorised short-term capital losses incurred by FPIs as gains, they claimed.

Many tax experts suspect that this could just be a technical glitch in the system, but even so the FPIs will now have to approach either the Commissioner of Income Tax (Appeals) or litigate the matter.

“The law allows long-term capital gains to be set off against short-term capital losses,” said Rajesh H Gandhi, partner at Deloitte India. “If such set-offs are denied, it could result in significant tax demands for FPIs, requiring them to litigate the matter. Hopefully this is a technical glitch and would be rectified soon.”

In other cases, the tax department has not taken tax treaties into consideration while demanding tax from FPIs. All FPIs that are covered by India’s bilateral tax treaties and attract much lower taxes – of 10% to 15% – than if they are not protected through tax treaties.

In several other cases, the tax department has categorised short-term capital losses incurred by FPIs as gains, sources said. So, instead of getting deductions on such amounts, they have been asked to cough up taxes.

“Taxpayers have raised concerns with respect to the Centralised Processing Centre erroneously treating short-term capital loss as short-term capital gains and taxing the same,” said Sameer Gupta at EY India. “There have been other issues, too, around gains which were subject to tax at 50% of the domestic tax rate,” he said.

“The remedial measures adopted by taxpayers for the above include filing of rectification application and also parallelly seeking recourse through an appellate process,” Gupta said. ET could not independently verify whether the tax notices were a result of a technical glitch or change in stance or any other issue related to FPIs. An email query sent to the CBDT and the FM did not elicit any response as of press time Thursday.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Indian Bank classifies 2 Srei grp a/cs as NPA, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


State-owned Indian Bank has classified two accounts of Srei Group, worth Rs 1,800 crore, as non-performing assets (NPAs) as on the September-ended quarter 2021. Its net profit has grown more than doubled at Rs 1,089 crore in the second quarter, as compared to Rs 412 crore in the same period last year.

Its MD & CEO Shanti Lal Jain said the profit was driven by growth in non-interest income, (other income), which grew by 26% YoY and 8% QoQ. “It stood at Rs 1,966 crore as against Rs 1,558 crore in the second quarter, on account of increase in recovery of bad debts and forex income,” Jain said.

However, the bank’s net interest income declined by 1% YoY and 2% QoQ to Rs 4,084 crore in the September quarter, 2021.

The public sector bank said we have recognized eight accounts as NPA (bad loans) worth Rs 1,900 crore, which are to be given to the National Asset Reconstruction Company (bad bank). He said “We have already made 50% of provisions for those eight accounts.”

Provisions and contingencies allocated to cover bad loans lowered to Rs 2,187 crore in this quarter, as against Rs 2,530 crore for the corresponding period last year, and Rs 2,234 crore sequentially.

Gross NPA ratio stood at 9.56% in September 2021, marginally lower from 9.89% in September, 2020. The net NPA ratio stood at 3.26%, higher from 2.96% in the same period.

The bank’s fresh slippages declined to Rs 3,952 crore compared to Rs 4,204 crore in the June quarter. Fresh slippage was high due to Corporate loans and crop loans.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Uco Bank posts 7-fold jump in Q2 net, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Public sector lender Uco Bank has reported a seven-fold jump in its net profit to Rs 205.3 crore for the second quarter this fiscal from Rs 30.1 crore for the same period last fiscal.

The city-based lender, which recently came out of the Prompt Corrective Action (PCA) measure of Reserve Bank of India, has witnessed a significant improvement in its asset quality during the second quarter despite the fact that it recognized its exposure of around Rs 1,000 crore in Srei Infrastructure Finance and Srei Equipment Finance as non-performing assets (NPAs).

The Kolkata bench of the National Company Law Tribunal (NCLT) earlier this month gave its approval to start insolvency proceedings against Srei Infrastructure Finance and its wholly-owned subsidiary Srei Equipment Finance after the Reserve Bank of India had filed insolvency applications against the two non-banking financial companies (NBFCs).

Uco Bank MD & CEO AK Goel, without mentioning the name of Srei, said, “It will be very premature to talk about the bad loan recovery from these two NBFCs. But we will remain optimistic that a good recovery should come (through insolvency resolution process).”

During the second quarter, the bank’s NPAs in absolute terms fell 3.6% quarter-on-quarter to Rs 10,909.7 crore from Rs 11,321.7 crore in the first quarter this fiscal. The Gross NPA ratio during the quarter under review declined 39 basis points sequentially at 8.9%.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

Banks make Rs 9,700 crore on hidden forex markups in 2020, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Banks made Rs 9,700 crore in hidden exchange rate markups on currency conversions, payments and card sales and Rs 16,600 crore on forex transaction fees in 2020, according to a new study.

While the overall amount Indians have spent on transaction fees for sending money abroad has decreased over the past five years, the fees paid to exchange rate margins are growing. “This highlights lack of transparency in remittance fee structures, putting consumers at risk of hidden fees as they unknowingly pay more than advertised for the remittance service in the form of a marked up exchange rate,” said Wise, which released the study.

Undisclosed markup

The upfront fee can vary but would often not represent the total cost of the transaction as traditional banks and providers tend to add an undisclosed markup on the exchange rate, instead of using the fair, mid-market rate. The difference between the rates results in a hidden fee unnecessarily costs people a lot more when sending money abroad.

Fee reduction

Banks have been reducing the fees on foreign remittances and their income under this head fell from Rs 15,017 crore in 2016 to Rs 12,142 crore in 2019.

However, they have protected themselves by recovering Rs 4,422 crore through exchange mark-up in 2020, which was up from Rs 2,505 crore in 2016.

These figures were from independent research carried out by Capital Economics in August 2021, which aimed to estimate the scale of foreign exchange transaction fees in India.

Overseas workers lose

Overseas workers sending money to India are also losing money. Over the past five years, money lost to exchange rate margins on inward remittances has grown from Rs 4,200 crore to Rs 7,900 crore. Meanwhile, fees paid to transaction costs have grown from Rs 10,200 crore in 2016 to Rs 14,000 crore in 2020.

Banks make Rs 9,700 crore on hidden forex markups in 2020

Of total fees paid on inward remittances to India in 2020, Saudi Arabia ranked first at 24%, followed by the US (18%), the UK (15%), Qatar (8%), Canada (6%), Oman (5%), (5%), Kuwait (5%), and Australia (4%).

Indian consumers spending abroad paid Rs 1,441 crore as transactions fees, of which Rs 1,303 crore were hidden charges in the form of exchange mark-up.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

UCO Bank Q2 net soars nearly 7-fold, asset quality improves

Banking & Finance

[ad_1]

Read More/Less


During a virtual press conference after declaring the results, Uco Bank MD & CEO AK Goel, without mentioning the name of Srei, said, “It will be very premature to talk about the bad loan recovery from the two NBFCs. But, we will remain optimistic that a good recovery should come (through insolvency resolution process).”

Buoyed by an increase in operating profit and a decrease in provisions, state-run Uco Bank on Thursday reported a nearly sevenfold year-on-year jump in its net profit to Rs 205.39 crore for the second quarter this fiscal from Rs 30.12 crore for the same period last fiscal.

The city-based lender, which recently came out of the Prompt Corrective Action (PCA) measure of Reserve Bank of India, showed a significant improvement in its asset quality during the second quarter despite the fact that it recognised its exposure of around Rs 1,000 crore in Srei Infrastructure Finance and Srei Equipment Finance as non-performing assets (NPAs).

The Kolkata bench of the National Company Law Tribunal (NCLT) earlier this month gave its approval to start insolvency proceedings against Srei Infrastructure Finance and its wholly-owned subsidiary Srei Equipment Finance after the RBI had filed insolvency applications against the two non-banking financial companies (NBFCs).

During a virtual press conference after declaring the results, Uco Bank MD & CEO AK Goel, without mentioning the name of Srei, said, “It will be very premature to talk about the bad loan recovery from the two NBFCs. But, we will remain optimistic that a good recovery should come (through insolvency resolution process).”

During the second quarter, the bank’s NPAs in absolute terms fell 3.64% quarter-on-quarter to Rs 10,909.79 crore from Rs 11,321.76 crore in the first quarter this fiscal. The Gross NPA ratio during the quarter under review declined 39 basis points sequentially at 8.98%.

Provision for NPAs declined 35.3% y-o-y to Rs 1,032.14 crore in Q2FY22 as against Rs 1,595.39 crore during Q2FY21.

Operating profit during the period grew 24% y-o-y to Rs 1,334.16 crore. Net interest income (NII) grew 14.68% y-o-y to Rs 1,597.73 crore, while non-interest income saw a 31.37% y-o-y growth at Rs 936.07 crore.

The lender’s domestic net interest margin (NIM) improved marginally to 2.9% from 2.88% during the corresponding quarter last fiscal. The bank expects its NIM to further improve to around 3% by the end of this fiscal.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

Indian Bank Q2 net profit jumps 164% to Rs 1,089 crore

Personal Finance

[ad_1]

Read More/Less


On the asset quality front, the gross NPA decreased by 13 bps on q-o-q basis, net NPA reduced by 21 bps to 3.26 % from 3.47 % q-o-q. The capital adequacy ratio stood at 15.88%.

Chennai-based public sector lender Indian Bank on Thursday reported a 164% jump in its net profit at Rs 1,089 crore for the second quarter of FY22 as against Rs 412 crore in the year-ago period. Total income stood at Rs 11,440 crore as against Rs 11,616 crore, registering a marginal decline.

Shanti Lal Jain, MD & CEO, Indian Bank, told mediapersons that increase in other income and reduction in provisioning have helped the bank post profits in the second quarter.

On the asset quality front, the gross NPA decreased by 13 bps on q-o-q basis, net NPA reduced by 21 bps to 3.26 % from 3.47 % q-o-q. The capital adequacy ratio stood at 15.88%.

Jain said the fresh slippages were lesser at Rs 3, 952 crore as compared to Rs 4,204 crore in Q1FY22. Cash recovery was higher at Rs 831 crore and AUC (advance under collection) recovery was higher at Rs 775 crore compared to Q1. Fresh slippage as compared to y-o-y, was high due to corporate loans and crop loans.

Retail, agriculture and MSME (RAM) advances grew by 14%, 16% and 8%, respectively. RAM sector grew by 13%. Its contribution to domestic advances was at 60%, he said.

Net interest income (NII) declined by 1% y-o-y basis to Rs 4,084 crore from Rs 4,144 crore. However, on q-o-q sequential basis, it grew by 2%. The net interest margin (NIM) improved by 4 basis points (bps) on q-o-q sequential basis. It stood at 2.89% for Q2FY22 as against 3.06% for Q2FY21.

Non-interest income went up by 26% y-o-y and 8% q-o-q. It stood at Rs 1,966 crore as against Rs 1,558 crore in Q2FY21 on account of increase in recovery of bad debts (450%) and forex income (42%).

Advances grew by 5% to Rs 3, 85,730 crore from Rs 3,65,896 crore, primarily driven by growth in RAM sector (13%). RAM constitutes 60% of the total advances. The bank has focused on capital light growth in credit.

Total deposits grew by 10% to Rs 5, 51, 472 crore as against Rs 5, 01, 956 crore.

Current account savings account CASA deposits grew by 8% to Rs 2,25,309 crore. The share of CASA to total deposits stood at 41% while current account deposits grew by 14% and savings account deposits by 8%. Total business recorded a 8% growth, reaching the level of Rs 9, 37, 202 crore as against Rs 8,67,852 crore. On a sequential q-o-q basis, it increased by 1%.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,
1 … 7 8 9 10 11 … 122