Tag: Net NPA

Bank of Baroda back in black; logs ₹1,209-crore profit in Q1

Banking & Finance

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Bank of Baroda (BoB) is back in the black in the first quarter of FY22, reporting a standalone net profit of ₹1,209 crore on the back of robust growth in other income and decline in provisions towards bad loans and standard assets.

The public sector bank had reported a net loss in both the year ago quarter (₹864 crore) and the preceding/ Q4FY21 quarter (₹1,046 crore). NIM improvesNet interest income (difference between interest earned and interest expended) was up 16 per cent year-on-year at ₹7,892 crore (₹6,816 crore in the year ago quarter).

Other income, comprising commission, exchange & brokerage, treasury income and recoveries in written-off accounts, jumped 63 per cent yoy to Rs 2,970 crore (Rs 1,818 crore).

Sanjiv Chadha, MD & CEO, said “The operating profit has shown a very sharp uptick, moving up nearly 41 per cent (to ₹5,707 crore). With the provisioning also contained, the net profit moved up to more than ₹1,200 crore.”

“.…The asset quality has been fairly resilient, with sequential lowering of gross NPAs as well as net NPAs by a tad. The improvement in the corporate credit cycle should benefit the bank as we forward.”

Global net interest margin improved to 3.04 per cent in the Apri-June quarter against 2.52 per cent in the year ago period.

Provisions, including towards bad loans and standard assets, declined 23 per cent yoy to ₹4,112 crore (₹5,349 crore).

The Bank made additional provision of ₹373 crore during the quarter ended June 30, in compliance with RBI’s June 7, 2019, circular on “Prudential Framework for Resolution of Stressed Assets issued guidelines for implementation of Resolution Plan”.

Slippages were lower at ₹5,129 crore in the reporting quarter against ₹11,655 crore in the preceding quarter. The slippages came mainly from MSME (42.5 per cent of the slippages), retail (24 per cent),and agriculture (21 per cent).NPAs declineGross non-performing assets (GNPAs) declined by ₹3,642 crore during the reporting quarter to stand at ₹63,029 crore as at June-end 2021. The Bank recovered ₹530 crore from the defunct Kingfisher Airlines account.

Gross NPA position improved a tad to 8.86 per cent of gross advances as at June-end 2021 against 8.87 per cent as at March-end 2021.

Net NPA position too improved to 3.03 per cent of net advances as at June-end 2021 against 3.09 per cent as at March-end 2021.

Global deposits declined a shade (0.34 per cent yoy) to ₹9,31,317 crore. However, the proportion of low-cost current account, savings account (CASA) increased to 43.21 per cent of domestic deposits against 39.49 per cent in the year ago quarter.

Global gross advances were down 3.40 per cent yoy to ₹7,11,487 crore, with retail advances growing about 12 per cent, agriculture about 9 per cent and MSME about 7 per cent. However, corporate advances contracted about 12 per cent yoy.

Bank of Baroda (BoB) is back in the black in the first quarter of FY22, reporting a standalone net profit of ₹1,209 crore on the back of robust growth in other income and decline in provisions for bad loans.

The public sector bank had reported a net loss in both the year ago quarter (₹864 crore) and March quarter (₹1,046.50 crore).

Net interest income (difference between interest earned and interest expended) was up 16 per cent year-on-year at ₹7,892 crore (₹6,816 crore in the year-ago quarter).

Other income, comprising commission, exchange & brokerage, treasury income and recoveries in written-off accounts, jumped 63 per cent yoy to ₹2,970 crore (₹1,818 crore).

Provisions, including towards bad loans, declined 23 per cent yoy to ₹4,112 crore (₹5,349 crore).

Additional provision

The bank said it has made additional provision of ₹373 crore in June quarter in compliance with RBI’s June 7, 2019 circular on “Prudential Framework for Resolution of Stressed Assets issued guidelines for implementation of Resolution Plan”.

Gross non-performing assets (GNPAs) declined by ₹3,642 crore during the reporting quarter to ₹ 63,029 crore as of June-end.

Gross NPA position improved a tad to 8.86 per cent of gross advances as at June-end 2021 against 8.87 per cent as at March-end 2021.

Net NPA

Net NPA position too improved to 3.03 per cent of net advances as at June-end 2021 against 3.09 per cent as at March-end 2021.

The number of borrower accounts where modification (restructuring) were sanctioned as per RBI’s circular (May 5, 2021) circular on “Resolution Framework – 2.0: Resolution of Covid-19 related stress of individuals and small business” was sanctioned and implemented stood at 8,544 and the aggregate exposure to such borrowers was ₹665 crore.

The bank has purchased PSLC (Priority Sector lending Certificates) of ₹3,500 crore under the category of Small and Marginal Farmer and sold PSLC of ₹1,000 crore under the category Micro Enterprises during the current quarter.

Deposits declined a tad (0.34 per cent yoy) to ₹9,31,317 crore. Advances were down 2.66 per cent yoy to ₹6,68,382 crore.

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Canara Bank Q1 profit rises nearly three-fold to Rs 1,177 cr, BFSI News, ET BFSI

Banking & Finance

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New Delhi, Jul 27 () Canara Bank on Tuesday reported nearly three-fold jump in standalone net profit at Rs 1,177.47 crore for the quarter ended June 30, helped by reduction in bad loans. The public sector lender had logged a net profit of Rs 406.24 crore in the same quarter of the previous financial year.

During the June quarter last year, Canara Bank had amalgamated Syndicate Bank into itself with effect from April 1, 2020.

Total income in the April-June increased marginally to Rs 21,210.06 crore, from Rs 20,685.91 crore in the year-ago period, Canara Bank said in a regulatory filing.

The bank’s gross non-performing assets (NPAs) declined slightly at 8.50 per cent of the gross advances as on June 30, 2021 as against 8.84 per cent at June-end last year.

Net NPA ratio too fell to 3.46 per cent, from 3.95 per cent in the same quarter a year ago.

As a result, provisions and contingencies for the first quarter came down to Rs 3,728.52 crore as compared to Rs 3,826.34 crore in the year-ago period.

Of this, provisions for NPAs significantly reduced to Rs 2,334.88 crore, as against Rs 3,549.99 crore a year ago.

The Provision Coverage Ratio (PCR) improved to 81.18 per cent as at June 2021, from 78.95 per cent as at June 2020, the bank said in a statement.

Capital adequacy ratio of the bank stood at 13.36 per cent as at June 2021. Out of which Tier-I is 10.34 per cent and Tier-II is 3.02 per cent, it said.

The bank said it plans to raise Rs 9,000 crore through a mix of debt and equity to enhance capital base to fund its business growth during the current fiscal. DP DRR DRR



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Sharp drop in provisions helps lender beat profit estimates, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: Axis Bank today reported a net profit of Rs 2,677 crore for the quarter ended March as against a net loss of Rs 1,387.8 crore in the year-ago quarter. The lender’s net profit was higher than even the most optimistic of analysts’ estimates.

The bank’s net interest income in the quarter jumped 11 per cent year-on-year (YoY) to Rs 7,555 crore, which was largely in-line with analysts’ estimates.

The bank reported a strong growth of 12 per cent on-year in its loan book, which was higher than analysts’ estimates of 7-9 per cent growth.

The bank reported a strong growth of 12 per cent on-year in its loan book, which was higher than analysts’ estimates of 7-9 per cent growth. The growth in loan was led by corporate loans, which grew 16 per cent on-year, whereas retail loans rose 11 per cent in the reported quarter.

The lender’s asset quality also showed improvement during the quarter as net non-performing assets ratio fell 14 basis points sequentially to 1.05 per cent. For the quarter, the lender’s specific loan-loss provisions were at Rs 7,038 crore as against Rs 4,204 crore in the year-ago quarter.


During the quarter, the Axis Bank made additional provisions of Rs 803 crore on account of change in NPA provision rates on loans to the commercial banking segment, the lender said. The lender’s credit cost also came down sharply to 1.21 per cent for the quarter as against 2.77 per cent a year ago.

The bank said that its overall capital adequacy ratio stood at 19.12 per cent including the Common Equity Tier I ratio of 15.4 per cent. It said that COVID-related provisions of Rs 5,012 crore provided an additional cushion of 69 basis points.

Axis Bank’s operating performance was strong as operating profit jumped 17 per cent year-on-year to Rs 6,865 crore in the reported quarter.

The lender’s top line was affected by a strong quarter for the non-interest bearing functions. Fee income in the quarter grew 15 per cent on-year to Rs 3,376 crore, which helped non-interest income rise 17 per cent on-year to Rs 4,668 crore.

For the financial year, the lender’s net profit more than quadrupled to Rs 6,588 crore, while its net interest income rose 16 per cent to Rs 29,239 crore.

Shares of Axis Bank ended 0.1 per cent higher at Rs 700.9 on the National Stock Exchange.



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SBI Q3 standalone net falls 7 pc to Rs 5,196 cr, BFSI News, ET BFSI

Banking & Finance

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Country’s largest lender State Bank of India (SBI) on Thursday posted nearly 7 per cent fall in its standalone net profit at Rs 5,196.22 crore for the third quarter ended December. The bank had posted net profit of Rs 5,583.36 crore in the October-December period of the previous fiscal.

Total income (standalone) also fell marginally to Rs 75,980.65 crore during Q3FY21, as against Rs 76,797.91 crore in the same period of 2019-20, SBI said in a regulatory filing.

On a consolidated basis, the bank posted a 5.8 fall in net profit at Rs 6,402.16 crore during the quarter under review, as against Rs 6,797.25 crore in the year-ago period.

The bank’s asset quality improved substantially as the gross non-performing assets fell to 4.77 per cent of the gross advances as of December 31, 2020 from 6.94 per cent in the corresponding period a year ago.

In value terms, the gross NPAs or bad loans stood at Rs 1,17,244.23 crore, as against Rs 1,59,661.19 crore.

Likewise, the net NPAs were down 1.23 per cent at Rs 29,031.72 crore, as against 2.65 per cent (at Rs 58,248.61 crore).

Provisions for bad loans and contingencies for the quarter spiked to Rs 10,342.39 crore, from Rs 7,252.90 crore a year earlier.

The shares of SBI were trading 2.02 per cent up at Rs 342.65 apiece on BSE.



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