Tag: net profit

PAT surges 355% YoY to Rs 207 cr, highest in 10 quarters, BFSI News, ET BFSI

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MUMBAI: YES Bank today reported a 355.2 per cent year-on-year rise in its net profit to Rs 207 crore for the quarter ended June, the highest quarterly profit since December 2018. Analysts had expected the lender to report a net loss.

The strong bottomline performance of the lender was aided by a 41 per cent on-year fall in provisions during the reported quarter.

The lender’s net interest income in the quarter slumped 26.5 per cent year-on-year to Rs 1,402 crore, which was below Street’s expectations.

YES Bank’s gross non-performing loans ratio rose to 15.6 per cent in the June quarter from 15.41 per cent in the previous quarter. However, net NPA ratio declined sequentially to 5.78 per cent. YES Bank’s provision coverage ratio also saw a sequential improvement to 79.3 per cent in the quarter.

Gross non-performing loans in the quarter stood at Rs 28,506 crore, which was slightly lower than the previous quarter. Cash recoveries continued to show positive momentum at Rs 602 crore in the quarter.

While the overall advances fell 1 per cent in the June quarter, the lender reported 23 per cent growth in its retail and small businesses loan book that was above its full-year guidance of 20 per cent. The current account-savings account ratio improved to 27.4 per cent and remained on-track to meet the lender’s guidance of more than 30 per cent in 2021-22.

YES Bank’s operating performance in the quarter was disappointing as operating profit sank 20 per cent on-year to Rs 920 crore, which was the highest in several quarters. The net interest margin in the quarter was at 2.1 per cent as against 3 per cent in the year-ago quarter.

Shares of YES Bank ended 0.8 per cent higher at Rs 13.1 on the National Stock Exchange.



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SBI Card Q1 net profit jumps 74% sequentially despite 2nd Covid wave

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SBI Card, the country’s largest pure play credit card issuer, on Friday reported a 74 per cent sequential increase in net profit for the first quarter-ended June 30 at ₹305 crore against net profit of ₹175 crore recorded in the previous quarter.

This is a clear pointer that the performance of SBI Cards had not been unduly impacted by the second wave of Covid-19 that struck India since April this year, said corporate observers.

However, on a year-on-year basis, net profit in the first quarter declined 23 per cent when compared to net profit of ₹393 crore in the first quarter last year.

Total income for the quarter under review declined 1 per cent sequentially to ₹2,451 crore from ₹2,468 crore in the previous quarter. However, on a year-on-year basis, total income in Q1FY22 was up 12 per cent against ₹2,196 crore in same quarter last fiscal, a company release said.

Higher retail spends

Retail spends for the quarter under review were up 63 per cent year-on-year at ₹27,000 crore despite lockdown 2.0. In the same quarter last fiscal, retail spends stood at ₹16,608 crore.

Nearly 55 per cent of the retail spends in the first quarter this fiscal were online spends. This was higher than 52 per cent for the first quarter last year.

Corporate spends for the quarter under review stood at ₹6,000 crore, up 149 per cent on a year-on-year basis over ₹2,477 crore.

The cards in force stood at 1.2 crore as of end-June 2021, reflecting 14 per cent increase over same quarter last year. However, the CIF growth sequentially was a modest 2 per cent.

Gross NPA stood at 3.99 per cent in Q1, higher than 1.35 per cent in same quarter last fiscal. It was, however, lower than 4.99 per cent recorded in previous quarter this year.

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Yes Bank reports 355% rise in Q1FY22 net profit

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Private sector lender Yes Bank is back in the black with a 355 per cent jump in its net profit to ₹206.84 crore in the quarter-ended June 30, 2021 compared to the same period last year.

The bank had reported a net loss of ₹3,787.75 crore in the quarter-ended March 31, 2021 and a net profit of ₹45.44 crore in the first quarter of last fiscal.

“This is the highest profit since December 2018,” Yes Bank said in a statement on Friday.

However, the lender’s total net income fell 2.8 per cent to ₹2,459 crore for the first quarter of this fiscal from ₹2,529 crore a year ago.

NII and NPAs

Net interest income declined by 26.5 per cent to ₹1,402 crore in the first quarter of the fiscal from ₹1,908 crore in the corresponding period last fiscal.

Net interest margin was down at 2.1 per cent on June 30, 2021 compared to 3 per cent a year ago.

Non interest income, however, shot up by 70.3 per cent on a year on year basis to ₹1,056 crore in the April to June 2021 quarter.

Provisions fell by 40.7 per cent to ₹644 crore in the first quarter of the fiscal from ₹1,087 crore a year ago.

Prashant Kumar, Managing Director and CEO, Yes Bank said going forward the requirement of provisions will further come down.

Gross non-performing assets were ₹28,505.95 crore or 15.6 per cent of gross advances as on June 30, 2021 from 17.3 per cent a year ago. However, net NPAs rose to 5.78 per cent of net advances from 4.96 per cent as on June 30, 2020.

The bank’s total gross restructured loans across all categories, including Covid-related one, amounted to ₹4,976 crore for the first quarter this fiscal. Of this, Covid-related restructuring stood at ₹3,300 crore. The lender said it does not expect too many further requests for restructuring.

Net advances fell 0.5 per cent on a year on year basis to ₹1,63,654 crore as on June 30, 2021 while total deposits grew 39.1 per cent to ₹1,63,295 crore.

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BoM Q1 net profit soars 106% to ₹208 crore

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Bank of Maharashtra’s (BoM) standalone net profit soared 106 per cent year-on-year (y-o-y) to ₹208 crore in the first quarter ended June 30, 2021, on the back of a healthy growth in net interest income and total non-interest income. The Pune-headquartered public sector bank had reported a net profit of ₹101 crore in the year ago period.

However, BoM restructured higher quantum of advances, mainly in the retail and corporate segments, even as its asset quality, in terms of non-performing asset (NPA) ratios, showed improvement in the reporting quarter.

Net interest income (difference between interest earned and interest expended) was up 29 per cent y-o-y to ₹1,406 crore (₹1,088 crore in the year ago quarter).

Total non-interest income, comprising fee-based income, trading income and other income, jumped 87 per cent y-o-y to ₹691 crore (₹369 crore).

Net interest margin (NII/ total assets) rose to 3.05 per cent in the reporting quarter from 2.43 per cent in the year ago quarter.

All-round improvement

AS Rajeev, MD & CEO, observed that there was an all-round improvement in BoM’s performance parameters despite the first two months of the quarter witnessing localised lockdowns across the country due to the second wave of the Covid pandemic. The bank will continue to maintain net interest margin (NIM) above 3 per cent, bring down gross NPAs and net NPAs below 6 per cent and 2 per cent, respectively in FY22, he added. The bank expects credit growth to continue at 14-15 per cent.

BoM restructured advances aggregating ₹2,240 crore (₹1,048 crore in the fourth quarter/Q4 of FY21). It restructured retail advances aggregating ₹1,013 crore; corporate (₹793 crore); and MSME (₹434 crore). Under restructuring, there is usually revision in repayment terms relating to the interest or repayment period. Fresh slippages were lower at ₹840 crore (₹2,051 crore in Q4FY21).

Also read: Bank of Maharashtra raises ₹403cr via QIP

Gross NPA position improved to 6.35 per cent of gross advances as at June-end 2021 against 7.23 per cent as at March-end 2021. Net NPAs position too improved to 2.22 per cent of net advances against 2.48 per cent.

Gross advances increased by 14 per cent y-o-y to ₹ 1,10,592 crore on the back of about 16 per cent growth in RAM (retail, agriculture and MSME) advances and about 12 per cent growth in corporate and other advances.

Total deposits were up 14 per cent y-o-y to ₹ 1,74,378 crore, with savings deposit and current deposit growing by 22 per cent and 24 per cent, respectively.

Current account, savings account (CASA) deposits accounted for 53.04 per cent of total deposits against 49.56 per cent in the year ago quarter.

Shares of the Bank closed at ₹23.10 apiece, down 2.33 per cent over the previous close on BSE.

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SIDBI’s FY21 net up 3.6% at ₹2,398 crore

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Small Industries Development Bank of India (SIDBI) reported a 3.6 per cent increase in FY21 net profit at ₹2,398 crore against ₹2,315 crore in FY20 on the back of lower interest and finance charges as well as operating expenses.

Net Interest Income (difference between interest earned and interest expended) grew 11.5 per cent year-on-year (YoY) to ₹3,678 crore in FY21 against ₹3,299 crore in FY20, the Development Financial Institution (DFI) said in a statement.

Non-interest income declined 12 per cent YoY to ₹944 crore in FY21 against ₹1,069 crore in FY20.

Interest & finance charges were down about 15 per cent YoY to ₹6,543 crore (₹7,722 crore). Operating declined about 8 per cent YoY to ₹560 crore (₹607 crore).

Net interest margin increased by 10 basis points (bps) to 2.04 per cent as on March 31, 2021 from 1.94 per cent as on March 31, 2020, the DFI said.

Total advances of the DFI, which is engaged in creating an integrated credit and development support ecosystem for Indian Micro, Small and Medium Enterprises (MSME), declined about 6 per cent YoY to ₹1,56,233 crore as of March 31, 2021, from ₹1,65,422 crore as of March 31, 2020.

However, investments jumped 72 per cent YoY to ₹19,153 crore from ₹11,118 crore.

Gross Non-Performing Assets (GNPA) ratio decreased by 45 basis points (bps) from 0.63 per cent to 0.18 per cent, and Net NPA (NNPA) ratio decreased by 28 bps from 0.40 per cent to 0.12 per cent, as on March 31, 2021.

SIDBI said Provision Coverage Ratio (PCR) rose to 93.24 per cent as on March-end 2021 from 78.35 per cent as on March-end level.

There are 23 shareholders in the DFI including State Bank of India (16.73 per cent stake), Government of India (15.4 per cent), Life Insurance Corporation of India (14.25 per cent), National Bank for Agriculture & Rural Development (10 per cent), Punjab National Bank (6.37 per cent) and Bank of Baroda (5.43 per cent).

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Deutsche Bank AG’s net profit in India rises 48% in FY21

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Deutsche Bank AG announced its India branches have posted a 48 per cent increase in net profit for the year-ended March 31, 2021 at ₹1,527 crore. It had reported a net profit of ₹1,031 crore in 2019-20.

Net revenue in the fiscal 2020-21 grew 23 per cent to ₹5,537 crore as against ₹4,510 crore a year ago.

The growth in net revenue was “driven by consistent performance across all our businesses in India, aided in large part by a strong cost and risk discipline,” it said in a statement on Thursday.

Its net non-performing assets fell by 44 basis points to 0.86 per cent of net advances in 2020-21 as against 1.31 per cent in 2019-20.

Advances increased by three per cent on an annual basis to ₹52,438 crore as on March 31, 2021 while deposits grew by 11 per cent to ₹66,224 crore.

Increase in capital deployment

“The last financial year was hugely challenging by any measure but by staying close to our clients and supporting them with their liquidity and risk requirements, the teams at Deutsche Bank once again demonstrated their resilience and dedication. Despite the impact of Covid, our asset quality continues to be strong,” said Kaushik Shaparia, CEO at Deutsche Bank India.

The additional capital infused during the year positions the bank strongly for 2021-22 as well, he further said.

“During 2020-21, Deutsche Bank increased the capital deployed in its India branches by ₹3,326 crore to support growth across all its business lines, taking the total capital deployed to ₹19,345 crore,” the bank said.

The bank’s Capital Adequacy Ratio in March 2021 stood at 17.28 per cent – an increase over the March 2020 level of 14.93 per cent.

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Karnataka Gramin Bank records ₹14 crore net profit in 2020-21

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The Ballari-headquartered Karnataka Gramin Bank (KGB), sponsored by Canara Bank, registered a net profit of ₹14.04 crore during 2020-21 as against a profit of ₹18.61 crore in 2019-20.

A press statement said that the bank has been consistently earning profits since inception.

The bank registered an income of ₹3,478 crore as against ₹3,233 crore in the previous fiscal.

It said that the bank continues to be the largest regional rural bank (RRB) in southern India with a total business of ₹55,855 crore during 2020-21 and the second largest RRB in the country, it said.

The deposits of the bank stood at ₹31,068 crore, and advances at ₹24,787 crore during the financial year 2020-21.

Also read: 2 RRBs in Karnataka amalgamated

Priority sector advances grew by 15.05 per cent to reach ₹22,928 crore, constituting 92.50 per cent of the bank’s total advances, it said.

The bank is targeting a business of ₹62,000 crore for 2021-22.

Karnataka Gramin Bank has a network of 1,134 branches, and 242 ATMs. It has deployed around 1,300 business correspondents for rendering services to its customers.

During the lockdown period, the bank deployed five mobile ATMs to deliver cash to the doorsteps of the people in Ballari, Kalaburagi, Raichur, Mysuru and Chitradurga districts, the statement said.

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After five years of losses, PSBs reported net profits in FY21: ICRA

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Public sector banks (PSBs) reported net profits in FY21 after five consecutive years of losses, supported by windfall treasury gains, according to ICRA. However, gains are likely to be much lower in FY22, given limited headroom for further decline in bond yields.

The credit rating agency estimated that the 12 PSBs booked profits of ₹31,600 crore from this source, compared to the overall Profit Before Tax (PBT) of ₹45,900 crore in FY21.

Trading gains

Notably, the trading gains for PSBs in FY21 exceeded the capital infusion of ₹200 billion received from the Government of India (GoI).

Notwithstanding the profits reported by the public banks in FY21, the agency said the PBT of other PSBs (excluding State Bank of India/SBI) at ₹18,400 crore were lower than their trading gains (₹25,500 crore), reflecting the challenges posed by Covid-19 on the asset quality and profitability of the banks.

ICRA observed that higher gains were recorded by PSBs on the back of relatively higher statutory liquidity ration (SLR) holdings compared to private sector banks (PvSBs).

Public sector banks losing market share in loans to private sector rivals

“The onset of Covid-19 resulted in windfall gains for public (sector) banks with trading profits on their bond portfolios rising sharply after the steep cut in policy rates by the Reserve Bank of India (RBI) in March 2020,” said ICRA in a note. Bond yields declined sharply in FY21 amid policy rate cuts following the onset of Covid-19.

Repo rate

The repo rate and the reverse repo rate were cumulatively cut by 115 basis points (bps) and 155 bps, respectively, during March 2020 and May 2020 to 4.00 per cent and 3.35 per cent, respectively, by May 2020.

Anil Gupta, Vice President – Financial Sector Ratings, ICRA, said: “As the banks booked gains on their bond holdings, their fresh investments are closer to the market rates, thereby aligning the yield on their bond portfolios closer to the market rates.

“The yield on the investment book for the public banks declined to 6.18 per cent in Q4 (January-March) FY21 from 6.79 per cent in Q4 FY20.”

Public sector banks support for Covid-19 health infra gathers pace

While banks make windfall profits amid the declining yield scenario, they could face challenges in their bond portfolios in a rising interest rate regime, opined Gupta.

“While the RBI is unlikely to be in a rush to hike interest rates in the near term, banks would need to be mindful as treasury profits would be relatively muted in FY22,” he said.

Like PSBs, PvSBs saw an improvement in their trading profits to ₹18,400 crore in FY21 (₹14,700 crore in FY20), which was 21 per cent of their PBT in FY21 (28 per cent in FY20), the note said.

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PNB eyes three-fold jump in bottomline at ₹ 6,000 cr in FY’22

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Punjab National Bank (PNB), the second largest public sector bank in the country, expects its bottomline in current fiscal to be atleast ₹ 6,000 crore, Ch S.S.Mallikarjuna Rao, MD and CEO has said.

This estimate is nearly three fold increase to the net profit of ₹ 2,022 crore recorded by the bank last fiscal.

“Last fiscal was a year of consolidation for us because of the amalgamation with two other banks. There were also Corona induced lockdown issues. This fiscal our conservative estimate is that bank will record net profit of not lower than ₹ 6,000 crore. This will, however, depend on the economy growing at 9.5 per cent as projected by RBI and Covid second wave impact getting eliminated by June 30”, Rao said at a press conference to announce the financial results for March quarter and entire FY’2020-21.

At the same time, Rao acknowledged that the ongoing first quarter was tough for the banking industry due to the impact of the second wave of the pandemic.

Credit growth

On the issue of credit growth, Rao said that he expects credit in the banking system to grow 8-10 per cent this fiscal and credit growth of PNB to be atleast 8 per cent. He highlighted that credit growth was very muted

Meanwhile, on the issue of PNB role in the proposed National Asset Reconstruction Company — which is expected to begin with take on board nearly ₹ 90,000 crore of stressed assets (NPA) from the banking system—Rao said that PNB has identified stressed assets worth ₹ 8,000 crore in bank’s book to be transferred to this asset reconstruction company. While public sector banks together are expected to pick up 51 per cent stake in the national ARC, Rao said that PNB shareholding will be less than 10 percentage points.

Rao said that he expected the proposed National Asset Reconstruction Company to be operational from July this year. “We are expecting everything to be put in place by June 30 and from July 1 onwards things will start functioning. The Indian Banks Association has already indicated this”, he said.

Capital mobilisation

To a question on capital raising, Rao said that the bank was adequately capitalised now (capital adequacy of 14.62 per cent after May QIP) and an assessment would be made after June quarter. “As of now we are not looking to come to market. There is some headroom in AT-1 bonds. Even there no decision has been made. There is no timeline at our end”, he added.

Last year, PNB had set for itself target of raising ₹ 14,000 crore of capital from the market comprising of ₹ 4,000 crore from Tier II bonds, ₹ 3,000 crore from AT-1 bonds and ₹ 7,000 crore from QIP. Already the bank has raised ₹ 3,994 crore out of ₹ 4,000 crore Tier II bonds, QIP raised in two tranches at ₹ 5,577 crore and AT1 bonds of ₹ 500 crore. In all, about ₹ 10,077 crore out of targeted ₹ 14,000 crore has been raised from the market by the bank.

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Private lender reports record annual profit of Rs 483 cr, BFSI News, ET BFSI

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Bengaluru: Private sector lender Karnataka Bank on Wednesday posted an all time high annual net profit of Rs. 483 crore for the financial year 2020-21, registering a 12% growth over the previous year’s revenues.

The net profit for the fourth quarter ended March 2021 is Rs. 31.36 crore, a 15% jump over the previous year. The bank’s board also recommended a dividend of 18%.

“This turned out to be the best result under the unprecedented tough conditions triggered by Covid-19 pandemic,” Bank’s managing director Mahabaleshwara MS said in a press release.

The business turnover of the bank was at Rs. 1,27,348 crore as on March 31, 2021. The deposits stood at Rs. 75,655 crore and advances at Rs. 51,694 crore. The CASA deposits grew 15% and reached an all time high of 31% of total deposits as on March 31, 2021.

Mahabaleshwara said vaccinations coupled with other measures including restructuring by the RBI will help needy borrowers and the banking sector overcome the challenges posed by the pandemic.

The bank also announced the appointment of Balakrishna Alse S, a former executive director of Oriental Bank of Commerce, as an additional director on its board.



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