Tag: net profit

YES Bank posts 74% jump in Q2 net profit

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Private sector lender YES Bank’s standalone net profit surged by 74.3 per cent to ₹225.5 crore in the second quarter of the fiscal led by a sharp jump in non interest income and lower provisions.

The bank’s standalone net profit was ₹129.37 crore in the second quarter of last fiscal.

For the quarter ended September 30, 2021, YES Bank however, reported a 23.4 per cent drop in its net interest income to ₹1,512 crore as against ₹1,973 crore a year ago.

Net interest margin was at 2.2 per cent.

Non interest income jumped up by 30.2 per cent on a year on year basis to ₹778 crore in the July to September 2021 quarter.

Provisions were 65 per cent lower at ₹377 crore in the second quarter of the fiscal as against ₹1,078 crore a year ago.

Asset quality saw some improvement but non performing assets remained high.

Gross NPAs was ₹28,740.59 crore or 14.97 per cent of gross advances as on September 30, 2021 versus 16.9 per cent a year ago. Net NPAs was 5.55 per cent of net advances at the end of the second quarter as against 4.71 per cent a year ago.

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Bank of Maharashtra net profit jumps ₹264 crore in Q2

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Bank of Maharashtra reported a 107 per cent year-on-year jump in second quarter net profit at ₹264 crore against ₹130 crore in the year ago quarter.

Net interest income in the reporting quarter rose 34 per cent yoy at ₹1499 crore. Other income was up 23 per cent yoy at ₹493 crore.

Loan loss provisions jumped to ₹583 crore, including towards increase in provisions on account of implementation of resolution plans under RBI’s “Resolution Framework for COVID-19 related stress” (August 6, 2020 circular) against a write back of ₹4.55 crore in the year ago quarter.

Deposits increased by 14.46 per cent yoy to ₹1,81,572 crore. Advances rose by 13.55 per cent yoy to ₹1,10,728 crore.

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Max Financial Services net down 49% in Q1 sequentially

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Max Financial Services Limited (MFSL) on Tuesday reported a 49 per cent sequential decline in consolidated net profit for the first quarter ended June 30 at ₹36 crore as compared to net profit of ₹70 crore recorded in the previous March quarter.

On a year-on-year basis, net profit for the quarter under review declined 80 per cent from net profit of ₹182 crore recorded in the same quarter last fiscal.

Total income for the quarter ended June 30, 2021 too declined sequentially by 39 per cent to ₹5943 crore as compared to total income of 9,760 crore in the previous March quarter. However, the total income for the quarter under review was up 7.7 per cent as compared to total income of ₹ 5,517 crore in same quarter last fiscal.

MFSL’s sole operating subsidiary, Max Life registered a 32 per cent jump in new business premium (on APE basis) to ₹875 crore during the quarter under review from ₹661 crore in the year-ago period.

Further, the renewal premium income (including group) rose 21 per cent to ₹2,244 crore, taking the gross written premium to ₹3,484 crore, a spurt of 27 per cent over the first quarter of the previous financial year.

Mohit Talwar, Managing Director, Max Financial Services, said in a statement “Strong focus towards customer measures has helped deliver superior performance across health parameters and will continue to remain an important priority due to the impact of the second wave of the Covid-19.”

“Our partnership with Axis Bank after the conclusion of the deal in April and the longstanding assurance with YES Bank helped partnership channels grow 52% in the first quarter of FY22”, he added.

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SoftBank’s Vision Fund posts $2 bn profit, share weakness casts shadow, BFSI News, ET BFSI

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TOKYO: SoftBank Group Corp‘s Vision Fund unit on Tuesday posted a 236 billion yen ($2.14 billion) profit in the first quarter after gains from listing portfolio companies were offset by falling shares in firms like e-retailer Coupang Inc.

The Japanese conglomerate posted record annual profit in May with executives pointing to further upside from Vision Fund investments such as Chinese ride-hailing firm Didi Global Inc and “Uber for trucks” startup Full Truck Alliance Co Ltd.

Those companies listed in New York during the quarter but Chinese regulatory action has subsequently hammered valuations, underscoring SoftBank’s China risk even as the group seeks to reduce dependence on its largest asset, a stake in Chinese e-commerce giant Alibaba Group Holding Ltd.

While the crackdown has affected returns expectations, “our broader thesis in China is unchanged: It’s still a large, growing and compelling economic opportunity,” said Vision Fund Chief Financial Officer Navneet Govil.

The turmoil is clouding the outlook for the group, whose shares have slipped a third from two-decade highs in March amid the completion of a record 2.5 trillion yen buyback. Shares closed up 0.9% ahead of earnings.

“Having a large public portfolio introduces volatility but at the same time it allows us to continue to monetise in a very disciplined manner,” said Govil.

More than two-thirds of the portfolio of the first $100 billion Vision Fund is listed or exited. SoftBank has distributed $27 billion to its limited partners since inception.

Further upside will come from listings by Indian payments firm Paytm and insurance aggregator Policybazaar as well as Southeast Asian ridehailer Grab, which is due go public via a blank-cheque company merger, Govil said. SoftBank is also ramping up investing through Vision Fund 2, to which it has committed $40 billion of capital, with the unit making 47 new investments worth $14.2 billion made in the April-June quarter alone.

In the first quarter, Vision Fund unit gains included 310 billion yen from selling shares in investments including delivery firm DoorDash Inc and ridehailer Uber Technologies Inc.

First-quarter group net profit, however, fell 39% to 762 billion yen.

SoftBank has also been betting on publicly listed shares through its SB Northstar trading unit. It held stakes in firms worth $13.6 billion at the end of June with the portfolio no longer including Microsoft Corp or Facebook Inc listed three months earlier.



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BoI Q1 net profit declines 15% y-o-y to ₹720 crore

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Bank of India (BoI) reported a 15 per cent year-on-year (yoy) decline in standalone net profit at ₹720 crore in the first quarter ended June 30, 2021, due to a decline in net interest income and a rise in provisions towards bad, doubtful and standard assets. The public sector bank had reported a standalone net profit of ₹844 crore in the year-ago quarter. The net profit in the reporting quarter, however, soared about three times vis-a-vis the fourth quarter’s ₹250 crore.

Net interest income falls

Net interest income (difference between interest earned and interest expended) declined about 10 per cent yoy to ₹3,144 crore (₹3,481 crore in the year-ago quarter). Total non-interest income (comprising income from commission, exchange & brokerage, profit from the sale of investments, profit from exchange transactions, recovery in written-off accounts, and other non-interest income) rose 39 per cent yoy to ₹2,377 crore (₹1,707 crore).

Within total non-interest income, profit from exchange transactions jumped 126 per cent yoy to ₹754 crore (₹333 crore), recovery in written-off accounts soared 477 per cent yoy to ₹173 crore (₹30 crore).

Also read: Bank of India posts Q4 profit of ₹250 crore

MD & CEO Atanu Kumar Das said total non-interest income includes a one-time inflow of ₹406 crore received on account of redemption of security receipts of an aviation account. Das observed that BoI will see an overall credit growth of 6-7 per cent in FY22, with the retail, agriculture, and MSME (RAM) segment expected to grow by about 14 per cent and corporate advances by about 5-6 per cent. Fresh slippages at ₹3,942 crore during the reporting quarter were lower vis-a-vis ₹7,368 crore in the fourth quarter (Q4) FY21 but substantially higher than year-ago quarter’s ₹402 crore. Slippages from the micro, small and medium enterprise (MSME) sectors accounted for 41 per cent of the total quarterly slippages, followed by agriculture (25 per cent), retail (16 per cent), corporate & others (10 per cent), and overseas (8 per cent).

PR Rajagopal, Executive Director, said the second Covid wave had a significant impact on retail and MSME borrowers. But collection efficiency in the retail segment is now at about 92 per cent. The Bank, which restructured loans aggregating ₹5,963 crore under RBI’s resolution framework 1.0 for Covid-related stress and ₹5,299 crore under the resolution framework 2.0, expects to recast about ₹5,000 crore more loans in the rest of FY22, he added.

Provisions towards bad and doubtful, and standard assets together were up 16 per cent yoy at ₹1,771 crore (₹1,526 crore).

Gross non-performing assets (GNPAs) level improved to 13.51 per cent of gross advances as at June-end 2021 against 13.91 per cent as at June-end 2020.

Net NPA level too improved to 3.35 per cent of net advances against 3.58 per cent.

Global deposits were up about 5 per cent yoy to ₹6,23,385 crore, with current account, savings account (CASA) deposits rising to 43.22 per cent of domestic deposits against 40.60 per cent in the year-ago period.

Global advances declined a shade (about 0.18 per cent yoy) to ₹4,14,697 crore, with domestic advances nudging up 1.65 per cent yoy and overseas advances declining 12 per cent yoy.

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HDFC Ltd Q1 net profit marginally down at ₹3,001 crore

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Housing Development Finance Corporation (HDFC) Ltd reported a 1.7 per cent drop in its net profit in the first quarter of the fiscal at ₹3,000.67 crore. Its net profit was ₹3,051.52 crore in the quarter ended June 30, 2020.

In a statement on Monday, HDFC Ltd said the profit numbers for the quarter ended June 30, 2021, however, are not directly comparable with that of the previous year. This is due to lower profit on sale of investments, lower dividend, higher charge for employee stock options and the effective tax rate of 23.1 per cent in 2021-22 as against 15.4 per cent last fiscal.

“In the previous year, the tax on capital gains on the sale of equity shares was low on account of grandfathering provisions as per the Income Tax Act, 1961,” it said.

HDFC provided ₹903.9 crore for tax in the quarter ended June 30, 2021 as against ₹555.31 crore a year ago.

However, shrugging off the impact of the second Covid wave, its net interest income surged by 22 per cent for the quarter ended June 30, 2021 to ₹4,147 crore compared to ₹3,392 crore in the previous year. Net interest margin was 3.7 per cent for the first quarter of the fiscal as against 3.1 per cent a year ago.

The country’s largest mortgage financier also saw robust growth in individual loan disbursements at 181 per cent year on year in the first quarter of the fiscal.

“Business has reverted back to normal in June and July was an extremely strong month for us. July 2021 disbursements were the highest ever in a non-quarter end month. July 2021 was the third highest in the history of HDFC,” said Keki Mistry, Vice-Chairman and Chief Executive Officer, HDFC Ltd.

The gross non-performing loans as of June 30, 2021 stood at ₹11,120 crore or 2.24 per cent of the loan portfolio. This was higher compared to 1.98 per cent as on March 31, 2021 and 1.87 per cent as on June 30, 2020.

As per regulatory norms, HDFC is required to carry a total provision of ₹5,778 crore. Its expected credit loss for the quarter ended June 30, 2021 was at ₹686 crore compared to ₹1,199 crore a year ago.

As at June 30, 2021, ₹4,482 crore has been restructured under the RBI’s Resolution Framework for Covid-19 related stress, which amounts to 0.9 per cent of the loan book.

Of the loans restructured, 38 per cent are individual loans and 62 per cent non-individual loans, HDFC said, adding that of the total restructured loans, 62 per cent is in respect of just one account.

The overall collection efficiency ratio for individual loans has improved during the month of June 21 to pre-Covid levels. The collection efficiency for individual loans on a cumulative basis in June 2021 stood at 98.3 per cent compared to 98 per cent in March 2021.

The assets under management grew 8.1 per cent to ₹5,74,136 crore as of June 30, 2021 from ₹5,31,186 crore in the previous year.

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HDFC’s Q1 net profit down marginally at ₹3,001 crore

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Housing Development Finance Corporation (HDFC) Ltd reported a 1.7 per cent drop in its net profit in the first quarter of the fiscal at ₹3,000.67 crore. Its net profit was ₹3,051.52 crore in the quarter ended June 30, 2020.

In a statement on Monday, HDFC Ltd said the profit numbers for the quarter ended June 30, 2021, however, are not directly comparable with that of the previous year. This is due to lower profit on sale of investments, dividend, higher charge for employee stock options and effective tax rate of 23.1 per cent in 2021-22 as against 15.4 per cent last fiscal.

“In the previous year, the tax on capital gains on sale of equity shares was low on account of grandfathering provisions as per the Income Tax Act, 1961,” it said.

HDFC Q4 net profit surges 42 per cent

HDFC provided ₹903.9 crore for tax in the quarter ended June 30, 2021 as against ₹555.31 crore a year ago.

However, shrugging off the impact of the second Covid wave, its net interest income surged by 22 per cent for the quarter ended June 30, 2021, to ₹ 4,147 crore compared to ₹3,392 crore in the previous year. Net interest margin was 3.7 per cent for the first quarter of the fiscal.

Loan disbursements

The country’s largest mortgage financier also saw a robust growth in individual loan disbursements at 181 per cent year-on-year in the first quarter of the fiscal.

“July 2021 disbursements were the highest ever in a non-quarter end month,” it said.

ICICI, Axis and HDFC Bank pick up stake in blockchain start-up

As at June 30, 2021, the assets under management grew 8.1 per cent to ₹5,74,136 crore as against ₹ 5,31,186 crore in the previous year.

The overall collection efficiency ratio for individual loans has improved during the month of June ‘21 to pre-Covid levels. The collection efficiency for individual loans on a cumulative basis in June 2021 stood at 98.3 per cent compared to 98 per cent in March 2021.

The gross non-performing loans as at June 30, 2021, stood at ₹ 11,120 crore or 2.24 per cent of the loan portfolio.

As per regulatory norms, HDFC is required to carry a total provision of ₹ 5,778 crore. Its Expected Credit Loss for the quarter ended June 30, 2021, was at ₹686 crore compared to ₹ 1,199 crore a year ago.

As at June 30, 2021, ₹4,482 crore has been restructured under the RBI’s Resolution Framework for Covid-19 related stress, which amounts to 0.9 per cent of the loan book.

Of the loans restructured, 38 per cent are individual loans and 62 per cent non-individual loans, HDFC said, adding that of the total restructured loans, 62 per cent is in respect of just one account.

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Karnataka Bank net profit down by 46%

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Karnataka Bank Ltd (KBL) registered a net profit of ₹106.08 crore in the first quarter of 2021-22 as against a net profit of ₹196.38 crore in the corresponding period of 2020-21, recording a decline of 45.98 per cent.

Speaking to BusinessLine after the meeting of the Board of Directors on Tuesday, to approve the financial results for quarter ended June 30, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said KBL continued to be a profitable bank even during the tough times. The reduction in net profit on a year-on-year basis is mainly on account of decline in treasury gains, which is dependent on the yield movements.

Compared to the sequential previous quarter — Q4 of FY 21 — the net profit is up by 3.38 times, he said. The net profit was at ₹31.36 crore during fourth quarter of 2020-21. Sequentially, on a quarter-on-quarter basis, the net profit was higher by 238.26 per cent over the fourth quarter ended March 2021, he said.

The net interest income of the bank was at ₹574.79 crore for the quarter ended June 30 as against ₹459.14 crore for Q4 of 2020-21.

NPA declines

“In spite of the Covid-affected economy, the asset quality has improved both in terms of absolute numbers and on percentage basis,” he said. The gross NPA (non-performing assets) of the bank declined to 4.82 per cent as at June 30, compared to 4.91 per cent in the sequential previous quarter of FY 21. The gross NPAs in absolute terms declined to ₹2,549.06 crore during Q1 of 2021-22 from ₹2,588.41 crore in Q4 of 2020-21, and ₹2,557.64 crore in Q1 of 2020-21.

The net NPAs also declined to 3 per cent during Q1 of 2021-22 from 3.18 per cent at the end of Q4 of 2020-21, and 3.01 per cent as at June 30, 2020. In absolute terms, net NPAs declined to ₹1,552.95 crore during Q1 of 2021-22, from ₹1,642.10 crore in Q4 of 2020-21 and ₹1,630.65 crore in Q1 of 2020-21.

“Going forward, the bank will continue to further consolidate on credit, CASA (current account, savings account) and asset quality,” he said.

Capital

The bank may go for augmenting the capital through QIP route, depending on the market condition. Even though the CRAR is comfortable at 14.58 per cent, the decision to go for QIP route was taken mainly with an intention to onboard a few suitable institutional investors, he said, adding the process would be taken forward after the due approval of the shareholders.

On Tuesday, the scrip of Karnataka Bank closed at ₹59.05 on BSE, down 1.17 per cent, against the previous close of ₹59.75.

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

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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.



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Net profit rises 32% YoY to Rs 1,642 cr; asset quality weakens, BFSI News, ET BFSI

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MUMBAI: Kotak Mahindra Bank today reported a 32 per cent year-on-year rise in its net profit to Rs 1,641.9 crore for the quarter ended June, which was below analysts’ expectations.

The private sector lender reported net interest income growth of 6 per cent on-year to Rs 3,942 crore, which was also below analysts’ estimates.

Provisions and contingencies in the quarter declined to Rs 935 crore from Rs 962 crore in the year-ago quarter. However, the lender saw a deterioration in asset quality in the reported quarter.

Kotak Bank’s gross non-performing loans ratio stood at 3.56 per cent in the reported quarter as against 3.25 per cent at the end of the March quarter. Similarly, the net NPA ratio expanded to 1.28 per cent from 1.21 per cent in the previous quarter.


The private sector bank’s net profit in the quarter was largely boosted by a sharp uptick in other income. Other income in the reported quarter jumped to Rs 1,583.03 crore from Rs 773.5 crore in the year-ago quarter.

Covid-related provisions as on June 30 were maintained at Rs 1,279 crore. In accordance with the Resolution Framework for Covid-19 and MSME announced by the RBI, the bank implemented total restructuring of Rs 552 crore as on June 30, Kotak Bank said.


In terms of loan growth, the quarter was tepid for the bank affected by the second wave as well as its conservative approach. Advances in the quarter grew merely 6 per cent on-year, which was lower than many of its peers.

At the same time, the current account-to-savings account ratio of the lender further improved to 60.2 per cent at the end of the June quarter from 56.7 per cent a year ago.

Kotak Bank’s operating performance was sturdy as operating profit jumped 19 per cent year-on-year to Rs 3,121 crore in the reported quarter.



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