Category: Banking & Finance

Axis Bank Q1 net profit soars 94% to Rs 2,160 cr

Banking & Finance

[ad_1]

Read More/Less


Private sector lender Axis Bank’s standalone net profit shot up by 94.2 per cent to Rs 2,160.15 crore in the first quarter of the fiscal from Rs 1,112.17 crore a year ago.

Net interest income grew 11 per cent to Rs 7,760 crore in the quarter ended June 30, 2021 as against Rs 6,985 crore a year ago.

The net interest margin was at 3.46 per cent at June-end 2021, registering a six basis points growth year-on-year.

Other income surged 39 per cent to Rs 3,588 crore in the first quarter of the fiscal from Rs 2,587 crore in the corresponding period last fiscal.

Provisions declined by 20 per cent to Rs 3,532.01 crore for the April to June 2021 quarter, as compared to Rs 4,416.42 crore a year ago.

“The bank has not utilised Covid provisions during the quarter,” Axis Bank said in a statement on Monday.

Asset quality improved. Gross non-performing assets amounted to Rs 25,949.77 crore or 3.85 per cent of gross advances, as against 4.72 per cent a year ago. However, on a sequential basis, it was higher compared to 3.7 per cent as on March 31, 2021.

Net NPAs were at 1.2 per cent as on June 30, 2021 as against 1.05 per cent as on March 31, 2021 and 1.23 per cent as on June 30, 2020.

The standard restructured loans under the resolution framework for Covid-19 related stress as on June 30, 2021 stood at Rs 2,192 crore that translates to 0.33 per cent of the gross customer assets.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Kotak Mahindra Bank Q1 net profit up 32%

Banking & Finance

[ad_1]

Read More/Less


Kotak Mahindra Bank reported a 31.9 per cent jump in standalone net profit for the quarter ended June 30 at ₹1,641.92 crore compared to ₹1,244.45 crore in the same period last fiscal.

Total income grew 4.9 per cent to ₹8,062.81 crore (₹7,685.4 crore).

Net interest income increased 5.8 per cent to ₹3,942 crore (₹3,724 crore).

Net interest margin for the first quarter was at 4.6 per cent versus 4.4 per cent a year ago.

Other income more than doubled to ₹1,583.03 crore (₹773.54 crore). Of this, fee income surged 50.6 per cent to ₹1,169 crore on an annual basis.

Provisions declined marginally to ₹934.77 crore in the first quarter from ₹962.01 crore a year ago.

“Covid related provisions as of June 30 were maintained at ₹1,279 crore,” the bank said in a statement on Monday.

Total restructuring

In accordance with the Resolution Framework for Covid-19 and MSME announced by RBI, the bank implemented total restructuring of ₹552 crore as of June 30against ₹435 crore as on March 31, .

Covid related restructuring in the first round was about ₹226 crore while it was very less in the second round.

The lender faced headwinds in terms of asset quality deterioration amidst the second wave of the pandemic. Gross non-performing assets rose to ₹7,931.77 crore or 3.56 per cent of gross advances as on June 30, 2021 compared to 2.7 per cent a year ago.

Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank, said there were challenges in terms of the ability of customers to pay as well as customers who could not be reached in time and moved into NPAs.

“Collections have normalised in June and July. We expect a reasonable number of customers, who couldn’t be reached for collections, to start payments,” he said.

Net NPAs were also elevated at 1.28 per cent of net advances as against 0.87 per cent as on June 30, 2020.

Capital adequacy ratio of the bank as per Basel III norms as of June 30, was 23.1 per cent and Tier-I ratio was 22.2 per cent.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

ESAF Small Finance Bank files DRHP with SEBI for IPO

Banking & Finance

[ad_1]

Read More/Less


ESAF Small Finance Bank has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The initial public offering comprises fresh issue of ₹8 billion worth of ESAF Small Finance Bank shares, and an offer for sale of ₹2 billion worth of shares by its promoters. The offer includes a reservation for subscription by eligible employees, of up to 5 per cent of the company’s post-offer paid-up equity share capital.

Also read: ESAF Small Finance Bank’s operating profit up by 28% in FY21

The company may also consider issuing equity shares on a private placement basis for cash consideration, aggregating up to ₹3 billion as the pre-IPO placement, according to the draft prospectus.

In April, ESAF Small Finance Bank raised ₹1.62 billion through preferential allotment of 21.8 million equity shares at ₹75, leading to a dilution of around 5 per cent stake.

As on March 31, the bank’s total deposits grew 28.04 per cent year-on-year to ₹90 billion, and advances rose 23.61 per cent to ₹84.13 billion. The current savings account ratio stood at 19.42 per cent compared with 13.66 per cent a year ago.

Also read: ESAF Small Finance Bank raises ₹162 crore through preferential allotment

Axis Capital Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd, and IIFL Securities Ltd are book-running lead managers to the issue.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Kotak Mahindra Bank Q1 net profit up 32% at Rs 1,642 crore

Banking & Finance

[ad_1]

Read More/Less


Kotak Mahindra Bank reported a 31.9 per cent jump in its standalone net profit for the quarter ended June 30, 2021 at Rs 1,641.92 crore, compared to Rs 1,244.45 crore in the same period in the last fiscal.

Its total income grew by 4.9 per cent to Rs 8,062.81 crore for the first quarter of the fiscal from Rs 7,685.4 crore a year ago.

Net interest income increased by 5.8 per cent to Rs 3,942 crore in the first quarter as against Rs 3,724 crore in the corresponding quarter in 2020-21.

The net interest margin for the first quarter was 4.6 per cent versus 4.4 per cent a year ago.

Other income more than doubled to Rs 1,583.03 crore in the April to June 2021 quarter, as against Rs 773.54 crore a year ago.

Provisions declined marginally to Rs 934.77 crore in the first quarter of the fiscal from Rs 962.01 crore a year ago.

“Covid related provisions as at June 30, 2021 were maintained at Rs 1,279 crore,” the bank said in a statement on Monday.

In accordance with the Resolution Framework for Covid-19 and MSME announced by RBI, the bank has implemented total restructuring of Rs 552 crore as of June 30, 2021.

The asset quality has deteriorated. Gross non-peorming assets rose to Rs 7931.77 crore or 3.56 per cent of gross advances as on June 30, 2021 compared to 2.7 per cent a year ago.

Net NPAs were also elevated at 1.28 per cent of net advances as against 0.87 per cent as on June 30, 2020.

 

[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

Mahindra Finance posts Q1 net loss of ₹1,573 crore

Banking & Finance

[ad_1]

Read More/Less


Amidst Covid related stress in rural and semi-urban markets, Mahindra & Mahindra Financial Services reported a consolidated net loss of ₹1,573.4 crore in the first quarter of the current fiscal against net profit of ₹432.12 crore in the corresponding period in 2020-21.

Total income declined 16 per cent to ₹2,567 crore during the quarter ended June 30, against ₹3,069 crore in the corresponding quarter last year.

To cover any contingencies due to the Covid-19 pandemic, the company carried an additional overlay of ₹2,709 crore (pre-tax) in the standalone financial statements and ₹2,808 crore (pre-tax) in the consolidated financial statements as of June 30.

Noting that the second wave of Covid had a severe impact on the semi-urban and rural markets, where it has major operations, Mahindra Finance said for the first quarter , disbursements dropped 35 per cent on a sequential basis to ₹3,872 crore, though it grew 42 per cent on a year-on-year basis.

Gross non-performing assets were higher at 15.5 per cent as on June 30, compared to nine per cent as of March 31, 2021.

“The company believes that the elevated NPAs are not a reflection of any credit risk increase but are purely delays caused by liquidity situation. Our experience in the past has always shown a return to normalcy by these segments of customers once their earnings stabilise,” Mahindra Finance said in a statement, adding that as the market conditions normalise over the next few quarters.

During the first quarter, it implemented resolution plans to relieve Covid -19 related stress of eligible borrowers in 59,455 loan accounts with a total outstanding of ₹2,172 crore.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Net profit rises 94% YoY, misses estimate; NII rises 11%, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


MUMBAI: Axis Bank today reported a 94 per cent year-on-year rise in net profit to Rs. 2,160 crore for the quarter ended June, which was above analysts’ estimate.

The lender reported a 11 per cent on-year growth in net interest income to Rs. 7,760 crore in the reported quarter, which was also below Street’s estimate.

The lender saw a marked deterioration in its asset quality in the quarter likely due to the second wave of COVID-19 pandemic. The gross non-performing assets ratio stood at 3.85 per cent in the June quarter as against 3.7 per cent in the previous quarter.

Similarly, the net NPA ratio rose to 1.2 per cent in the quarter from 1.05 per cent in the previous quarter. The lender’s gross slippages in the quarter jumped 23 per cent sequentially to Rs. 6,518 crore and was nearly three times from the year-ago quarter.

As on June 30, the bank’s provision coverage, as a proportion of gross NPAs stood at 70 per cent, as compared to 75 per cent in the year-ago quarter and 72 per cent in the previous quarter.



[ad_2]

CLICK HERE TO APPLY

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

Anarock, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


NEW DELHI: Banks and other financial institutions have an exposure of $100 billion to real estate sector, of which 67 per cent are safe while the remaining loans are under pressure or severely stressed, according to real estate consultant Anarock.

“At least 67 per cent (or approximately $67 billion) of the total loan advances ($100 billion) to Indian real estate by banks, NBFCs and HFCs is currently completely stress-free,” Anarock Capital, a subsidiary of Anarock, said in a statement on Monday.

Another 15 per cent (about $15 billion) is under some pressure but has scope for resolution with certainty on at least the principal amount.

“$18 billion (or 18 per cent) of the overall lending to Indian real estate is under ‘severe’ stress, implying that there has been high leveraging by the concerned developers who have either limited or extremely poor visibility of debt servicing due to multiple factors,” the statement said.

Anarock Capital said the overall contribution of non-banking financial companies (NBFCs) and housing finance companies (HFCs), including trusteeships, towards the total lending to Indian real estate is at 63 per cent.

Individually, banks have a share of 37 per cent, followed by HFCs at around 34 per cent, and NBFCs 16 per cent.

Around 13 per cent loans have been given under trusteeships.

According to Anarock Capital, banks and HFCs are much better placed with 75 per cent and 66 per cent of their lending book in a comfortable position.

“Not surprisingly, nearly 46 per cent of the total NBFC lending is on the watchlist,” the statement said.

About 75 per cent of the total lending to Grade A developers is safe.

“This presents a comfortable outlook because out of the total loans given to real estate, more than USD 73 billion is given to Grade A builders,” the statement said.



[ad_2]

CLICK HERE TO APPLY

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

SBI reshuffles roles at HR and Tech verticals, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


State bank of India (SBI) has announced a few key reshuffling in the bank’s HR and Technology departments.

Om Prakash Mishra who was elevated to the post of Deputy Managing Director (DMD) in May 2021, is now designated as DMD (HR) & Corporate Development Officer (CDO).

Prior to becoming the DMD, Om Prakash Mishra has held the position of Chief General Manager (CGM) of SBI Hyderabad Circle.

He has taken over from Rana Ashutosh Kumar Singh who is now holding the portfolio of DMD (Strategy) & Chief Digital Officer.

Rana Ashutosh Kumar Singh, who has been associated with SBI for nearly three decades, has handled important assignments in Retail Banking, Credit, HR and International Banking.

Ravindra Pandey who was serving as DMD (Strategy) & Chief Digital Officer, has now taken charge as DMD and Chief Information Officer (CIO).

In his new role, he is leading the entire IT Ecosystem of the Bank including the running of SBI’s Core Banking System, Digital Channels as well as 400+ applications. He is working towards future-proofing SBI by implementing emerging technologies like AI, ML, Analytics, Robotics, Blockchain etc. He has also had the international experience of heading SBI’s Paris (France) operations as CEO.



[ad_2]

CLICK HERE TO APPLY

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

Minister, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Non-performing assets (NPAs) or bad loans of banks have declined by Rs 61,180 crore to Rs 8.34 lakh crore at the end of March 31, 2021, as result of various steps taken by the government, Minister of State for Finance Bhagwat K Karad said on Monday.

Scheduled commercial banks (SCBs) were carrying NPAs worth Rs 8.96 lakh crore on their balance sheet at the end of March 2020.

“Primarily as a result of transparent recognition of stressed assets as NPAs, gross NPAs of SCBs, as per RBI data on global operations, rose from Rs 3,23,464 crore as on 31.3.2015, to Rs 10,36,187 crore on 31.3.2018, and as a result of Government’s strategy of recognition, resolution, recapitalisation and reforms, have since declined to Rs 9,33,779 crore on 31.3.2019, Rs. 8,96,082 crore as on 31.3.2020, and further to Rs 8,34,902 crore (provisional data) as on 31.3.2021,” he said.

Karad in a written reply to the Lok Sabha said COVID-19 Regulatory Package announced by RBI permitted lending institutions to grant a moratorium of six months on payment of all instalments falling due between March 1 and August 31, 2020, in respect of all term loans and to defer the recovery of interest for the same period in respect of working capital facilities.

Replying to another question, Karad said, gross NPAs of public sector banks (PSBs) peaked at Rs 8,95,601 crore on March 31, 2018.

As a result of Government’s strategy of recognition, resolution, recapitalisation and reforms, NPAs have since declined to Rs 7,39,541 crore on March 31, 2019, Rs 6,78,317 crore on March 31, 2020 and further to Rs 6,16,616 crore as on March 31, 2021 (provisional data).

“The net NPAs have displayed a similar trend, increasing initially from Rs 1,24,095 crore on 31.3.2014 to Rs 2,14,549 crore on 31.3.2015, Rs 3,24,372 crore on 31.3.2016, Rs 3,82,087 crore on 31.3.2017 and peaking at Rs 4,54,221 on 31.3.2018, and declining thereafter to Rs 2,84,689 crore on 31.3.2019, Rs 2,31,551 crore on 31.3.2020 and further to Rs 1,97,360 crore as on 31.3.2021 (provisional data),” he said.

Throughout this period, he said, PSBs continued to post aggregate operating profits of Rs 1,37,151 crore, Rs 1,58,994 crore, Rs 1,55,603 crore, Rs 1,49,819 crore, Rs 1,74,640 crore in the financial year 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 respectively.

“However, primarily due to continuing ageing provision for NPAs, they made aggregate provision for NPAs and other contingencies of Rs 1,55,226 crore, Rs 1,70,371 crore, Rs 2,40,956 crore, Rs 2,17,481 crore and Rs 2,00,404 crore respectively in the said years, resulting in aggregate net losses of Rs 17,993 crore, Rs 11,389 crore, Rs 85,370 crore, Rs 66,636 crore and Rs 25,941 crore respectively and returning to profitability thereafterwith aggregate net profit of Rs 31,820crore in FY2020-21,” he said.

At the same time comprehensive steps were taken to control and to effect recovery in NPAs, which enabled PSBs to recover Rs 5,01,479 crore over the last six financial years, he added.

In a reply to another question, Karad said overall credit growth of Scheduled Commercial Banks (SCBs) has remained positive for 2020-21 despite contraction in GDP (-7.3 per cent) due to the COVID-19 pandemic.

‘Gross Loans and Advances – Outstanding’ of SCBs increased from Rs 109.19 lakh crore as of March 31, 2020 to Rs 113.99 lakh crore as of March 31, 2021, he said.

Further, he said, as per RBI data of loans to agriculture and allied activities, micro, small & medium enterprises, housing and vehicle have witnessed a year-on-year growth of 12.3 per cent, 8.5 per cent, 9.1 per cent and 9.5 per cent respectively during the year.

Ability of PSBs to further increase lending is evident through Capital to Risk Weighted Assets Ratio which stood at 14.04 per cent as of March 31, 2021, as against regulatory requirement of 10.875 per cent, he added.



[ad_2]

CLICK HERE TO APPLY

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

SBI Life Insurance Q1 net profit down 43%

Banking & Finance

[ad_1]

Read More/Less


SBI Life Insurance registered a 42.9 per cent drop in its net profit in the first quarter of the fiscal year, as the insurer makes additional reserves for future Covid-19 claims.

The private sector life insurer reported net profit of ₹223.16 crore for the quarter ended June 30, 2021 as against ₹390.89 crore in the same period last fiscal.

It made additional reserves amounting to ₹444.72 crore towards Covid-19 pandemic for future claims.

SBI Life Insurance said it saw a 1.28 times increase in the number of claims reported in the first quarter of 2021-22 compared to the first quarter last fiscal.

The total number of Covid-19 claims for this quarter was 8,956 for the insurer. In value terms, the claims net of reinsurance amounted to ₹570 crore.

“Mortality experience is in line with the assumptions,” SBI Life Insurance said in its investor presentation.

Its net premium income increased by 9.5 per cent on a year on year basis to ₹8,312.55 crore in the first quarter of the fiscal from ₹7,588.09 crore a year ago. Total income however fell 2.7 per cent to ₹15,736.91 crore on an annual basis due to lower income from investments. Value of new business increased by 45 per cent to ₹340 crore in the first quarter of the fiscal.

Its 13-month persistency ratio improved by 295 basis points to 84.5 per cent as on June 30.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,
1 … 239 240 241 242 243 … 540