Tag: net

Indiabulls Housing Finance Q2 profit down 11.4%

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Indiabulls Housing Finance registered an 11.4 per cent drop in its consolidated net profit for the second quarter of the fiscal at ₹286.34 crore compared to ₹323.2 crore a year ago.

Total revenue from operations fell 13.5 per cent to ₹2,232.79 crore for the quarter ended September 30 against ₹2,581 crore in the same period last fiscal.

Retail loan disbursal grows

Its loan book was at ₹64,062 crore, down 2.1 per cent from ₹65,438 crore as on June 30.

“With co-lending partnerships in place, retail disbursal growth has gained momentum in FY22.

The company disbursed retail loans of ₹325 crore through co-lending in the month of September. This will scale up to ₹500 crore by December 2021 and ₹800 crore by March 2022, Indiabulls Housing Finance said in a statement on Thursday.

It is on track to disburse ₹1,000 crore of retail loans through co-lending in the third quarter of the fiscal, it added.

Gross NPAs were at 2.69 per cent as on September 30 versus 2.86 per cent as on June 30 and 2.21 per cent as on September 30, 2020.

Net NPAs were at 1.53 per cent as on September 30 compared to 1.63 per cent a year ago.

Shoring up provisions

“The balance sheet has been strengthened by shoring up provisions to ₹3,153 crore, 4x times the regulatory requirement and equivalent to a healthy 4.9 per cent of our loan book and 152 per cent of gross NPAs,” the statement said.

The company restructured loans of ₹96.7 crore, equivalent to 0.15 per cent of its loan book, under the restructuring frameworks 1.0 and 2.0 combined.

Collection efficiency has now normalised to pre-Covid levels.

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Capri Global Capital Q2 standalone net dips 21% to ₹41 crore

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Capri Global Capital Ltd (CGCL) reported a 21 per cent year-on-year (yoy) drop in second quarter standalone net profit at ₹41 crore against ₹52 crore in the year ago period as growth in total expenses outstripped growth in total income.

While total income was up 16 per cent yoy at ₹171 crore (₹147 crore in the year ago quarter), total expenses rose 48 per cent yoy at ₹114 crore (₹77 crore).

The non-banking finance company’s loan portfolio (standalone) increased 21 per cent to ₹3,797 crore and investment portfolio was up 33 per cent to ₹553 crore.

During the reporting quarter, the company implemented resolution plans in the case of 571 accounts aggregating ₹180 crore under the RBI’s August 6, 2020, circular on “Resolution Framework for Covid-19-related Stress”.

CGCL’s consolidated net profit ( including results of Capri Global Housing Finance and Capri Global Resource) declined 14 per cent to ₹52.5 crore (₹61 crore).

Disbursals (consolidated: MSME, construction finance and housing finance) jumped over three times to ₹585 crore during the quarter against ₹190 crore in the year ago quarter.

Assets under management (consolidated) was up 27 per cent at ₹5,271 crore (₹4,147 crore).

Also read: Capri Global launches ‘Prime’ affordable housing loans

Net interest margin (NIM) declined to 9.6 per cent from 10.6 per cent in the year ago quarter. However, NIM in the reporting quarter was up vis-a-vis preceding quarter’s 9.3 per cent.

Gross stage 3 (credit impaired) assets rose to 3.26 per cent of gross advances against 2.18 per cent in the year ago quarter. However, the proportion of such assets in the reporting quarter was down vis-a-vis preceding quarter’s 3.45 per cent.

Net stage 3 assets rose to 0.61 per cent of net advances against 0.12 per cent in the year ago quarter. However, the proportion of such assets in the reporting quarter was down vis-a-vis preceding quarter’s 0.81 per cent.

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Karnataka Bank Q2 net up 5 per cent

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Karnataka Bank registered a 5.17 per cent rise in its second quarter net profit at ₹125.61 crore as against a net profit of ₹119.44 crore in the corresponding period of 2020-21.

Net interest income increased 10.83 per cent to ₹637.10 crore in Q2 as against ₹574.87 crore in the same period last fiscal. Fee-based income stood at ₹164.37 crore (₹121.46 crore).

Speaking to BusinessLine, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said these factors indicate that there is significant improvement in the core business.

He stated non-performing assets (NPAs) of the bank have also further moderated during the quarter. Mahabaleshwara also noted that year-on-year comparison of NPAs is not fair during the current quarter because there was a standstill clause for the identification of the NPAs in the corresponding period a year ago. He said gross NPAs reduced to 4.5 per cent during Q2FY22 against 4.82 per cent in Q1FY22, and net NPAs also reduced to 2.84 per cent against 3 per cent in Q1FY22.

Credit growth

Stating the bank has been able to sail through one more pandemic-affected quarter with flying colours, he indicated that credit growth is back on track. Karnataka Bank added net fresh credit of ₹2,676.73 crore during Q2, he said.

On the 12.89 per cent decline in the operating profit, he said this is because of meagre trading profits during the period. The bank recorded an operating profit of ₹389.59 crore during the second quarter of 2021-22 as against ₹447.26 crore in the corresponding period of 2020-21. The trading profit of the bank stood at ₹6.5 crore (₹155.18 crore) during the period.

The bank has been able to continuously maintain the PCR at above 70 per cent and CRAR at 14.48 per cent. He said the net interest margin of the bank improved by 23 bps and now stands at 3.31 per cent (3.08 per cent).

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Axis Bank’s Q2 standalone net up 86%

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Private sector lender Axis Bank reported an all time high quarterly net profit of ₹3,133.32 crore in the second quarter of the fiscal as provisions declined.

This was 86.21 per cent higher than ₹1,682.67 crore in the second quarter of last fiscal.

For the quarter-ended September 30, 2021, the bank’s net interest income grew eight per cent year-on-year to ₹7,900 crore from ₹7,326 crore in the same period last fiscal.

Net interest margin stood at 3.39 per cent compared to 3.58 per cent a year ago.

In a media call on Tuesday, the bank said it expects NIM to improve as growth improves and the bank deploys liabilities more effectively.

Other income grew by 6.4 per cent in the July to September 2021 quarter to ₹3,798.38 crore from ₹3,569.35 crore in the same period last fiscal. Fee income grew 17 per cent year-on-year to ₹3,231 crore in the quarter under review.

Provisions fell by 60 per cent to ₹1,735.09 crore in the second quarter of the fiscal from ₹4,342.82 crore a year ago.

“The bank has not utilised Covid provisions during the quarter. The bank holds cumulative provisions (standard + additional other than NPA) of ₹12,951 crore at the end of the second quarter of 2021-22,” Axis Bank said in a statement on Tuesday.

Gross NPA falls

As on September 30, 2021, the bank’s reported gross NPA stood at ₹24,148,61 crore or 3.53 per cent of gross advances. This was at 3.85 per cent as on June 30, 2021 and 4.18 per cent as on September 30, 2021.

Net NPAs, however, increased to ₹7,199,97 crore or 1.08 per cent at the end of the second quarter from 0.98 per cent a year ago. However, on a sequential basis, it fell from 1.2 per cent as on June 30, 2021.

“On the business front, we are seeing solid progress. We continue our focus on SMEs and mid-corporate segments, and on the retail side we see better disbursements and growth driven by secured products,” said Amitabh Chaudhry, Managing Director and CEO, Axis Bank, adding that consumer and business confidence is likely to trend up in the second half of the fiscal.

The bank’s deposits grew 18 per cent year-on-year to ₹7,36,286 crore while advances grew 10 per cent year-on-year to ₹6,21,719 crore as on September 30, 2021.

Axis Bank said its restructuring amounted to 0.64 per cent of customer assets and was amongst the lowest in the larger peer banks.

It implemented resolution plans in 8,162 accounts with an exposure of ₹2,124.2 crore under the RBI’s Resolution Framework 1.0. Of this, ₹45.77 crore slipped into NPA during the first half of the year and ₹26.51 crore was written off.

Under the Resolution Framework 2.0, the bank has an exposure of ₹2,518.56 crore to accounts where resolution plans have been implemented. This has led to an increase in provisions by ₹680.89 crore.

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Bajaj Finance Q2 net up 53.5%

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Bajaj Finance reported a 53.5 per cent jump in its consolidated net profit for the second quarter of the fiscal to ₹1,480.99 crore against ₹964.88 crore in the corresponding period last fiscal.

For the quarter-ended September 30, total revenue from operations increased by 18.7 per cent to ₹7,731.36 crore from ₹6,513.15 crore a year ago.

NII rises

Net interest income for the second quarter of the fiscal increased by 28 per cent to ₹5,335 crore as against ₹4,162 crore a year ago.

Interest income reversal for the quarter stood at ₹322 crore as compared to ₹216 crore in the second quarter last fiscal.

New loans booked during the second quarter were up 75 per cent to 63.3 lakh from 36.2 lakh in the second quarter last fiscal.

Loan losses and provisions for the July to September 2021 quarter stood at ₹1,300 crore as against ₹1,700 crore in the second quarter last fiscal.

“During the quarter, the company has done accelerated write-offs of ₹355 crore of principal outstanding on account of Covid-19 related stress and advancement of write-off policy,” Bajaj Finance said in a statement on Tuesday.

The company holds management and macro-economic overlay of ₹832 crore as of September 30, 2021.

Gross non-performing assets and net NPA as of September 30, 2021 stood at 2.45 per cent and 1.1 per cent respectively, as against 2.96 per cent and 1.46 per cent as of June 30, 2021.

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CSB Bank Q2 net jumps 72% on income growth

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CSB Bank reported a 72 per cent year-on-year (yoy) jump in second quarter net profit at ₹119 crore due to healthy growth in net interest income and other income, and write-back in total provisions.

The Thrissur (Kerala)-headquartered bank had recorded a net profit of ₹69 crore in the year ago quarter.

Net interest income (the difference between interest earned and interest expended) was up 21 per cent yoy at ₹278 crore (₹229 crore in the year ago quarter).

Other income, including fees earned from providing services to customers, commission from non-fund based banking activities, earning from foreign exchange transactions, selling of third-party products, profit on sale of investments (net), etc., rose about 36 per cent yoy to ₹60 crore (₹44 crore).

The bank saw a write-back of ₹9.2 crore in total provisions, including towards non-perfoming assets (NPAs) in the reportng quarter. In the year ago quarter, it made provisions aggregating ₹26.90 crore in the year ago quarter.

As of September-end, total advances grew 12.57 per cent yoy to ₹15,097 crore.

Growth in advances

The growth was mainly on the back of increase in agriculture & microfinance industry loans, gold loans, corporate loans, two-wheeler loans, new MSME loans. However, retail loans, MSME general loans and assignment loans saw a decline.

Total deposits were up 9.09 per cent to ₹19,055 crore. The proportion of low-cost current account, savings account (CASA) deposits in total deposits improved to 32.60 per cent (29.39 per cent as at September-end 2020). During the reporting quarter, fresh slippages were lower at ₹205 crore (of which ₹170 crore is on account of gold loans) against ₹435 crore in the first quarter.

Non-performing asset (NPA) reduction, including via upgradation and recoveries, was higher at ₹305 crore (₹142 crore in the preceding quarter).

CVR Rajendran, Managing Director & CEO, said: “…in terms of profitability, Q2 is a much better quarter than Q1FY22…Lot of good work has gone in managing the portfolio stress both in gold and non- gold portfolios and SMA (special mention accounts)/NPA levels were kept under control.”

He observed that CSB Bank saw return of demand in Micro, Small and Medium Enterprise (MSME), SME and Whole Sale Banking segments during the last part of the quarter. Further, visible growth is also happening in Gold loan portfolio.

As the impact of Covid is not fully ascertained, the bank decided to continue with the accelerated provisioning policy for stressed and NPA accounts, Rajendran said.

BK Divakara, CFO, emphasised that this is the first time that the bank has posted over ₹100 crore profit in a quarter. Net interest margin improved to 5.22 per cent, from 4.48 per cent in the year ago quarter.

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ICICI Lombard Q2 net rises 7.4%

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ICICI Lombard General Insurance reported a 7.4 per cent jump in its net profit for the second quarter of the fiscal at ₹446.67 crore. Its net profit was ₹415.74 crore in the same period last fiscal.

“The financials for the current year represent numbers of the merged entity, accordingly the first quarter of 2021-22 has been restated. The comparative numbers for the previous year in the financials pertain to standalone ICICI Lombard and hence are not comparable,” ICICI Lombard General Insurance said in a statement on Thursday.

This follows its acquisition of the non-life insurance business of Bharti AXA General Insurance. On September 3, the firm had announced that it had received regulatory and other approvals from IRDAI for the demerger of general insurance business of Bharti AXA General.

Premium income

For the quarter-ended September 30, 2021, ICICI Lombard posted a 32 per cent increase in its net premium income to ₹3,250.29 crore as against ₹2,462.52 crore in the corresponding quarter in 2020-21.

Net income from investments also soared by 35 per cent on a year-on-year basis to ₹551.75 crore in the second quarter of the fiscal.

Claims paid by the general insurer shot up by 76.6 per cent to ₹2,119.32 crore in the second quarter of the fiscal from ₹1,200.27 crore a year ago.

Claims for the first half of the fiscal include impact of Covid claims on health book of ₹561 crore as against ₹115 crore in the first half of 2020-21 and ₹339 crore in the fiscal year 2020-21, it said in its investor presentation.

Combined ratio stood at 105.3 per cent in the second quarter of the fiscal as against 99.7 per cent a year ago. Solvency ratio stood at 2.49x as at September 30, 2021 as against 2.61x at June 30, 2021.

The board of directors of the company declared an interim dividend of ₹4 per share for the first half of the fiscal year.

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Kotak Mahindra Bank Q1 net profit up 32%

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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.

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

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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.

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CSB Bank’s Q1 net rises 14% y-o-y to ₹61 crore

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CSB Bank reported a 14 per cent year-on-year (yoy) increase in net profit at ₹61 crore in the first quarter ended June 30, 2021 even as it saw a rise in delinquencies in gold loans, which account for a major share of its credit portfolio.

The Thrissur-headquartered private sector bank had reported a net profit of ₹54 crore in the year-ago quarter.

CVR Rajendran, Managing Director and CEO said, “Covid second wave coupled with the LTV (loan to value) management of gold loans did pose some challenges in the first quarter of FY22.

“…We are confident of managing the NPAs as the challenges are mainly from the gold segment where recovery is only a matter of time.”

During the reporting quarter, fresh slippages rose by ₹435 crore (₹188 crore in the fourth quarter/Q4FY21), with gold loans alone accounting for 77 per cent of the slippages.

Loan loss provisions were higher at ₹104 crore in Q1FY22 against ₹14 crore in the year-ago period and ₹91 crore in Q4FY21.

Rajendran emphasised that stable gold market trends and the centralisation of recovery processes at the bank’s end will mitigate this adverse situation to a large extent.

NII and NPAs

Net Interest Income (the difference between interest earned and interest expended) rose 45 per cent y-o-y to ₹268 crore (₹185 crore in Q1FY21).

Total non-interest income, comprising fee-based income, trading income and other income, nudged up 3 per cent yoy to ₹76 crore (₹74 crore).

Gross NPA position deteriorated to 4.88 per cent of gross advances as at June-end 2021 against 2.68 per cent as at March-end 2021. Net NPAs position, too, showed a similar trend, increasing to 3.21 per cent of net advances against 1.17 per cent.

“Increase in GNPA level when compared to Q4 of FY21 is mainly because of increase in Gold NPAs and we are optimistic of recovering the same without much losses/haircuts,” the bank said in a statement.

Total advances increased 23 per cent y-o-y to ₹14,863 crore as at June-end 2021. Total deposits rose 14 per cent yoy to ₹18,653 crore.

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