Tag: 55

Central Bank of India reports 55% y-o-y rise in second quarter net profit

Banking & Finance

[ad_1]

Read More/Less


Central Bank of India (CBoI) reported a 55 per cent year-on-year (yoy) rise in its second quarter net profit at ₹250 crore against ₹161 crore in the year ago period, buoyed by lower loan loss provisions, write-back in provisions for standard assets, among others.

The public sector bank’s net interest income (difference between interest earned and interest expended) was up about 6 per cent y-o-y to ₹2,495 crore (₹2,354 crore in the year ago period).

Total non-interest income, comprising fee-based income, treasury income and other receipts edged up 1.55 per cent y-o-y to ₹720 crore (₹709 crore).

Loan loss provisions declined 56 per cent y-o-y to ₹311 crore (₹707 crore). The bank received a write-back of ₹394 crore from provisions it made towards standard assets (against ₹33 crore provision it had made under this head). Income tax provision was also lower at ₹103 crore (₹193 crore).

Slippages

Fresh slippages were higher at ₹2,104 crore (₹1,281 crore in the first quarter). Reduction in non-performing assets (NPAs), including via upgradation, recovery (including sale to asset reconstruction company), regular write-off, stood at ₹2,781 crore (₹2,790 crore).

Gross NPAs improved to 15.52 per cent of gross advances as on September-end 2021 against 15.92 per cent as on June-end 2021. Net NPAs also improved to 4.51 per cent of net advances as against 5.09 per cent.

The bank seems to be closer to being brought out of the Reserve Bank of India’s prompt corrective action (PCA) framework as it is no longer in breach of any of the four risk thresholds (capital, asset quality, profitability and leverage), going by the numbers in the analyst presentation.

Total advances declined about 1 per cent y-o-y to ₹1,75,594 crore. The lender said it had done a technical write-off (two) of advances of ₹4,810 crore during quarter-ended March 2021. If this was not done, then figure of advances as on September-end 2021 would have been ₹1,80,404 crore, with y-o-y growth of 1.75 per cent.

Total deposits increased by 4 per cent y-o-y to ₹3,36,500 crore. The share of low-cost CASA deposits increased to 49.79 per cent of total deposits from 47.72 per cent in the year ago period.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Pandemic lifts home loan demand, rise up to 14% despite restrictions, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


As the pandemic raged, people took to the safety of homes, literally.

Banks home loan portfolios jumped up to 14% in the first quarter despite a rise in Covid cases and restrictions due to the pandemic.

The home loan portfolio of the State Bank of India increased 11 per cent to Rs 5,05,473 crore in the first quarter of the current fiscal ended June 30, 2021, compared with ₹4,55,443 crore in the year-ago period. It forms constituting 23 per cent of the bank’s total domestic advances.

Home loans at Canara Bank increased 13.15 per cent during the first quarter to Rs 65,136 crore. In the previous year, the growth in the portfolio was only 10.6 per cent. Punjab National Bank saw a 6.1 per cent growth in home loans.

Rising ticket size

HDFC saw its average loan size jump from Rs 27 lakh to Rs 29.5 lakh during the Covid pandemic as borrowers sought larger homes with many companies shifting to work-from-home mode.

Even as the average property value purchased by borrowers during the pandemic rose, the affordability of loans for borrowers improved to a 25-year high.

The affordability is measured as the number of years of income required to buy a house.

The affordability improved to 3.2 years of income as against 3.3 years in FY20 and 2.5 years in FY19. This was largely because the annual income of borrowers rose from Rs 15 lakh to Rs 16 lakh even as property values remained at FY18 levels. The average age of the borrower also dipped from 39 years to 38 years.

Growing competition

ICICI Home Finance has launched an on-the-spot home loan for workers and self-employed who do not have income tax returns (ITR) to show their earnings.

Under the ”Big Freedom Month”, ICICI Home Finance aims to assist home loan seekers who do not have income tax returns proof to buy their dream home, it said in a statement.

Carpenters, plumbers, electricians, tailors, painters, welders, auto mechanics, and auto taxi drivers, among others, can avail of the spot home loan by submitting PAN card, Aadhaar card and bank account statement of the past six months.

Prospective homebuyers can visit the ICICI HFC branch to get free consultation from experts.

SBI is also focusing on home loans. It announced a 100 per cent waiver on processing fees till August 31. Before the offer, the processing fee was 0.40 per cent.



[ad_2]

CLICK HERE TO APPLY

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