Tag: profit

ICICI Bank shares hit 52-week high post Q1 earnings

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New Delhi, July 26 Shares of ICICI Bank on Monday gained over 1 per cent and touched 52-week high on the bourses after the company’s June quarter net profit zoomed 52 per cent. The stock rose by 1.29 per cent to ₹685.40 — its 52-week high — on the BSE. At the NSE, it gained 1.30 per cent to ₹685.45 — its 52-week high.

Profits driven by lower provisions

ICICI Bank’s June quarter net profit zoomed 52 per cent to ₹4,747.42 crore, driven majorly by lower provisions but reported an increase in stress from the retail loans segment.

On a standalone basis, the second-largest private sector lender by assets posted a net profit of ₹4,616.02 crore for the reporting quarter, up by 77 per cent when compared with the national lockdown-hit April-June period of FY21. The earnings were announced on Saturday.

The gross NPAs came at 5.15 per cent against 4.96 per cent in the quarter-ago period and 5.46 per cent in the year-ago period.

Also read: ICICI Bank Q1 net profit zooms 78% to ₹4,616 crore

The provision line saw some activity in the reporting quarter, including a change in accounting norms to be more conservative which led to ₹1,127 crore additional impact and a write-back of ₹1,050 crore from Covid provisions as the bank grew more confident of the overall asset quality situation exiting the quarter with a ₹6,425 crore buffer.

The overall provisions came at ₹2,852 crore, nearly a third of the ₹7,594 crore set aside for the year-ago period despite an increase in the gross non-performing assets (NPA) ratio.

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Federal Bank records highest ever operating profit, BFSI News, ET BFSI

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Federal Bank recently announced the Unaudited Financial Results for the quarter ended 30th June 2021. Its operating profit has grown 21.75% to reach Rs. 1135.18 Cr with net total income growing 15.90% to reach Rs.2068.58 Cr.

Gold loans have registered growth of 53.90% to reach Rs. 15764 Cr and retail advances have grown 15.15% to reach Rs.43599.03 Cr.

Shyam Srinivasan, Managing Director & CEO, Federal Bank said “The external environment continues to be challenging however we have managed to keep our operating momentum intact by delivering our highest ever operating profit, for the quarter. Our CASA ratio is at an all-time high and we continue to build a granular liability franchise with more than 90% of our deposits being retail in nature.”

The total business of the Bank reached Rs. 299158.36 Cr registering Y-o-Y growth of 8.30% as on 30th June 2021. Total Deposits reached Rs. 169393.30 Cr registering Y-o-Y growth of 9.33%. Net advances grew by 6.98% Y-o-Y to reach Rs. 129765.06 Cr as on 30th June 2021.

The total Savings Bank deposit registered a growth of 18.71% to reach Rs. 49018.24 Cr as on 30th June 2021. CASA Deposits of the Bank stood at Rs. 58958.79 Cr registering a Y-o-Y growth of 18.83%. NRE Deposits of the Bank reached Rs. 66018.73 Cr registering a Y-o-Y growth of 9.53% as on 30th June 2021. NRE SB grew to reach Rs. 20010.09 Cr registering a Y-o-Y growth of 14.92%.

The Operating Profit of the Bank as on 30th June 2021 stood at Rs. 1135.18 Cr up from Rs. 932.38 Cr. with total income reaching Rs.4005.86 Cr. Net Profit of the Bank for the quarter ended June 2021 stood at Rs. 367.29 Cr.

“Our relationship with the NR diaspora continues to blossom with our share in personal inward remittances increasing to 18.20%. We have also managed to keep asset quality in check with only a marginal uptick in GNPA and NNPA. Investors believe in our brand and its operational efficiency which was testified by a reputed investor like IFC with their decision to invest in the Bank to the tune of 4.99%” Shyam Srinivasan added.

Net Interest Income grew 9.41% on a Y-o-Y basis from Rs.1296.44 Cr to Rs.1418.43 Cr, other income grew by 33.13% to reach Rs.650.15 Cr, compared to Rs.488.37 Cr as on 30th June 2020. Net total income of the Bank grew 15.90% to reach Rs.2068.58 Cr.

Gross NPA of the Bank as at the end of the quarter stood at Rs. 4649.33 Cr, which as a percentage of Gross Advances comes to 3.50%. Net NPA as on 30th June 2021 stood at Rs.1593.24 Cr, and Net NPA as a percentage of Net Advances is at 1.23%. The Provision Coverage Ratio (including technical write-offs) was strengthened substantially and stood at 78.66%.

The Bank’s Net worth on a Y-o-Y basis increased from Rs.14922.82 Cr to Rs. 16488.53 Cr from 2020 to 2021. The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 14.64% as at the end of the quarter. Book Value per share increased to Rs. 82.60 from Rs. 74.85.

Some key ratios include the ROA & ROE of the Bank for the quarter which stood at 0.76% and 9.03% respectively. The Net Interest Margin as on 30th June 2021 stood at 3.15% and cost to income ratio of the Bank has been contained at 45.12% clocking a reduction of 264 bps Y-o-Y. The EPS of the Bank on an annualized basis stands at Rs 7.38.



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Federal Bank Q1 profit down 8.4%

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Private sector lender Federal Bank reported an 8.4 per cent drop in net profit for the quarter ended June 30, 2021 at ₹367.29 crore. Its net profit was ₹400.77 crore in the first quarter of last fiscal.

The bank’s total income grew by 1.9 per cent to ₹4,005.86 crore in the April- June 2021 quarter from ₹3,932.52 crore a year ago.

Net interest income grew by 9.4 per cent to ₹1,418.43 crore in the first quarter this fiscal against ₹1,296.44 crore a year ago.

Other income surged by 33.1 per cent to ₹650.15 crore for the quarter under review.

Provisions increased by 62.6 per cent to ₹641.83 crore in the first quarter this fiscal as against ₹394.62 crore a year ago.

Gross non performing assets also rose to ₹4,649.33 crore or 3.5 per cent of gross advances as on June 30, 2021 versus 2.96 per cent a year ago. Net NPA levels were stable at 1.23 per cent at the end of the first quarter this fiscal versus 1.22 per cent as on June 30, 2020.

Federal Bank said 13 borrower accounts involving ₹600.67 crore were given modifications under the Resolution Framework 2.0.

In a separate stock exchange filing, Federal Bank said its board of directors at the meeting on Friday also approved allotment of 10.48 crore equity shares at the issue price of ₹87.39 per share to International Finance Corporation, IFC Financial Institutions Growth Fund and IFC Emerging Asia Fund.

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South Indian Bank net profit slips on higher credit cost

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Higher credit cost had its impact on the profitability of South Indian Bank in the first quarter of FY22. The bank has posted a net profit of ₹10.31 crore in Q1 compared to ₹81.65 crore in the corresponding period of the previous year.

However, the operating profit has registered a 26.86 per cent growth in Q1 at ₹512.12 crore as against ₹403.68 crore during the corresponding period of the previous year.

Murali Ramakrishnan, MD & CEO said that slippages during the quarter was on the higher side by which the gross NPA and net NPA stood at 8.02 and 5.05 per cent, respectively, as on June 30 in view of Covid scenario, affecting various sectors.

Also read: South Indian Bank posts net profit of nearly ₹7 crore in Q4

Meanwhile, during this quarter, the bank could improve the Provision Coverage Ratio to 60.11 per cent as on June 30 as against 58.73 per cent as on March 31.

The bank has strengthened the review and monitoring system of the advance portfolio to improve the credit quality and thereby bringing drastic reduction in the slippages and improving upgrades/ recovery, he added.

The prevailing Covid scenario impacted the growth in the business and personal loan segment. While the bank could register substantial growth in the desired segments such as gold loan portfolio during the period, the strategy to reduce lumpy advances continued and share of corporate advances stands at 24 per cent of total advances as on June 30, he said.

The Capital Adequacy Ratio of stands comfortable at 15.47 per cent as on June 30. The bank plans to raise additional capital during FY 21-22 to further strengthen the capital base, he said.

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Karur Vysya Bank posts 24% growth in Q4 net

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Karur Vysya Bank (KVB) on Friday reported a 24 per cent year-on-year growth in net profit for the fourth quarter of FY21 at ₹104 crore supported by lower provisions for bad loans and contingencies. The bank reported a net profit of ₹84 crore in the year-ago quarter.

The bank’s provisions (other than tax) and contingencies fell by 84 per cent to ₹71.45 crore (₹429.27 crore).

Operating profit of the bank, on a YoY basis, fell by 50 per cent to ₹249.78 crore (₹499.83 crore) after expending ₹62 crore towards arrears payable under XI Bi-partite settlement (BPS) and interest on interest reversal of ₹25 crore as per an order of the Supreme Court.

For the full year, the bank’s net profit grew 52.76 per cent to ₹359 crore (₹235 crore) while operating profit during the period fell to ₹1,429 crore (₹1,761 crore).

Operating profit hit

The bank, however, said that various factors affecting the operating profit include arrear payment under XI BPS and corresponding provisions for various staff retirement benefits amounting to ₹245 crore in all in addition to the interest-on-interest reversal of ₹25 crore mentioned above.

Total business of the bank as on March 31 stood at ₹1.16 lakh crore (₹1.07 lakh crore). While gross advances of the bank stood at ₹52,820 crore (₹48,516 crore) as of FY21, total deposits grew to ₹63,278 crore (₹59,075 crore) during the period.

“Credit growth resulted from improved off take in retail and business segments as well as higher growth witnessed in the jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels,” the bank said in a release.

Gross NPA of the bank, on a YoY basis, improved to 7.85 per cent (8.68 per cent) as of March while net NPA improved by 51 bps and dropped to 3.41 per cent (3.92 per cent) during this period.

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Karnataka Bank Q4 net up 14.83 per cent

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Karnataka Bank Ltd registered a net profit of ₹31.36 crore during the fourth quarter of 2020-21 as against a net profit of ₹27.31 crore in the corresponding period of the previous fiscal, recording a growth of 14.83 per cent.

The board of directors of the bank, which met on Wednesday, approved the audited annual financial results for the period ended March 31 and also recommended a dividend of 18 per cent to be approved in the ensuing 97th annual general meeting.

The bank registered a net profit of ₹482.57 crore for 2020-21 as against ₹431.78 crore in 2019-20, recording a growth of 11.76 per cent.

Terming the annual result as the best result during tough conditions triggered by the pandemic, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said this clearly demonstrates the resilience of the bank.

The all-time high annual net profit, the highest ever CRAR of 14.85 per cent, very satisfactory PCR of 70.05 per cent, a new high of 31.49 per cent in CASA, over 90 per cent digital transactions, moderation in NPAs, etc., all indicate that economic prescription of the bank for Covid era – ‘Conserve, Consolidate and Emerge Strong’ – has provided the much-required immunity, he said.

Also read: Karnataka Bank gets additional director

The retail and mid-corporate advance, which has been the focus areas of the bank as part of its credit realignment initiative, has registered a growth of 6.34 per cent. The overall credit portfolio has seen negative growth as there was a degrowth of 53.44 per cent under the large corporate sector.

He said the ratio of retail, mid-corporate, large corporate has improved to 52.98 per cent, 33.79 per cent, 13.23 per cent as against 45.49 per cent, 28.71 per cent, 25.80 per cent as of March 2020.

“Even though we have been successful in overcoming the adverse impact of the pandemic under wave 1.0, we will continue to be ‘cautious and conservative’ in handling wave 2.0 as well, by keeping intact all our efficiency maximisation efforts,” he said.

‘Economic vaccines’

Various ‘economic vaccines’ such as restructuring, guaranteed emergency credit line, etc., being rolled out by the RBI and the Government would definitely help the needy borrowers and the banking industry alike to effectively overcome the challenges in a resilient way, he said.

Stating that the non-performing assets (NPA) have also moderated, he said the gross NPAs of the bank stood at ₹2,588.41 crore constituting 4.91 per cent as of March 31, 2021 as against ₹2,799.93 crore constituting 4.82 per cent as on March 31, 2020.

The net NPAs also moderated to ₹1,642.10 crore constituting 3.18 per cent from ₹1,755.01 crore as on March 31, 2020 constituting 3.08 per cent. Even though both the gross NPAs and net NPAs amounts have come down, the marginal increase in percentage term is mainly on account of denominator effect, he said.

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RBL Bank Q4 net profit down 34%

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Private sector lender RBL Bank reported a 34 per cent drop in its net profit to ₹75 crore for the quarter-ended March 31, 2021 led by a sharp rise in provisions and lower interest income. Its net profit stood at ₹114 crore in the fourth quarter of 2019-20.

The bank’s net profit for fiscal year 2020-21 increased marginally to ₹508 crore from ₹506 crore in 2019-20.

“Net profit at ₹508 crore for 2020-21, similar to 2019-20, is down quarter-on-quarter due to accelerated/additional prudential provisioning,” RBL Bank said.

For the fourth quarter, net interest income declined by 11 per cent to ₹906 crore as against ₹1,021 crore in the same period in FY20. Net interest margin also fell to 4.17 per cent in the fourth quarter last fiscal as against 4.93 per cent a year ago.

However, other income grew by a robust 38 per cent to ₹688 crore in the fourth quarter in 2020-21 versus ₹501 crore a year ago. Provisions surged by 25.6 per cent to ₹766 crore in the fourth quarter last fiscal as against ₹610 crore a year ago.

Provision coverage ratio was at 72 per cent in the fourth quarter as against 68.8 per cent in the third quarter and 64 per cent in the fourth quarter in 2019-20.

NPAs rise

Gross non performing assets stood at 4.34 per cent of gross advances as on March 31, 2021 as against 3.62 per cent as on March 31, 2020. Net NPAs stood at 2.12 per cent of net advances as on March 31, 2021 versus 2.05 per cent a year ago.

Vishwavir Ahuja, Managing Director and CEO, RBL Bank said “We have dealt with the impact of the Covid pandemic fairly satisfactorily in as much as we have taken several steps to strengthen the franchise, by building strong capital buffers, deepening and expanding the deposit base, granularising and improving the quality of the balance sheet, maintaining net NPAs at satisfactory levels, similar to last year, while maintaining overall profitability.”

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IDBI Bank back in black in FY21 after 5 years, posts profit of Rs 1,359 cr, BFSI News, ET BFSI

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LIC-controlled IDBI Bank turned profitable in the fiscal ended in March 2021 after five years, posting a net profit of Rs 1,359 crore for the year. In 2019-20, the lender had posted a net loss of Rs 12,887 crore.

IDBI Bank is back in black after five years, said the lender.

In the last quarter of the fiscal year 2020-21, the bank reported a nearly four-fold jump in its net profit to Rs 512 crore, IDBI Bank said in a release. The bank had posted a profit of Rs 135 crore in the year-ago quarter.

The bank, which came out of the RBI‘s prompt corrective action (PCA) framework earlier in March this year, said its turnaround strategies led to the transformation.

Total income during Q4FY21 rose to Rs 6,969.59 crore from Rs 6,924.94 crore in the same period of 2019-20.

The full year income, however, was down at Rs 24,557 crore as against Rs 25,295 crore.

Gross NPA (non-performing asset) ratio improved to 22.37 per cent as on March 31, 2021 as against 27.53 per cent in the year-ago period. Net NPA improved to 1.97 per cent from 4.19 per cent, IDBI Bank said.

The bank said its recovery from technically written off accounts improved to Rs 269 crore in Q4FY21 as against Rs 105 crore in the third quarter FY21.

Provisions for bad loans and contingencies were raised to Rs 2,457 crore during the reported quarter as against Rs 1,584 crore.

The bank said it has made Covid-related provisions of Rs 363 crore at the end of March 2021.

IDBI Bank shares traded at Rs 36.25 on BSE, up 2.69 per cent from the previous close.



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GIC Re reports Q3 net profit at ₹987.42 cr

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State run re-insurer General Insurance Corporation of India (GIC Re) reported a net profit of ₹987.42 crore for the third quarter of the fiscal as against a net loss of ₹1,069.64 crore for the same period last fiscal.

For the quarter ended December 31, 2020, GIC Re reported gross premium written of ₹11,668.51 crore, a 1.1 per cent increase over ₹11,539.96 crore of gross written premium a year ago.

Underwriting loss for the third quarter 2020-21 is recorded at ₹1,022.64 crore as against underwriting loss of ₹2,749.44 crore in the corresponding period last fiscal.

Solvency ratio increased to 1.53 as on December 31, 2020 as compared to 1.51 a year ago.

Combined ratio stood at 108.5 per cent at the end of the third quarter this fiscal versus 130.4 per cent a year ago. “As compared to the second quarter, there is a growth in business volume during the third quarter of 2020-21,” GIC Re said in a statement on Thursday.

It added that though the Covid-19 pandemic continues to influence the insurance industry, the severity of the impact is gradually reducing and is reflected in the results of the industry.

Financials

“GIC Re’s financials for the nine months ended December 31, 2020 have shown indications of positivity and signals turnaround in the near future,” it further said, adding that the underwriting performance is expected to show better trends going forward.

GIC Re’s international business has shown a growth rate of 23 per cent.

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Kotak Mahindra Bank Q3 net profit up 16%

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Private sector lender Kotak Mahindra Bank reported a 16.1 per cent increase in its standalone net profit at ₹ 1,853.54 crore for the third quarter this fiscal as against ₹ 1,595.90 crore in the same period last fiscal.

Net interest income for the quarter ended December 31, 2020 rose by 17 per cent to ₹ 4,007 crore, from ₹ 3,430 crore a year ago. Net interest margin for the quarter under review was at 4.51 per cent.

Other income was almost flat at ₹ 1,334.38 crore (₹ 1,341.43 crore).

Provisions soared by 34.9 per cent to ₹ 599.03 crore in the third quarter this fiscal as against ₹ 444 crore a year ago.

“Covid related provisions as at December 31, 2020 stood at ₹ 1,279 crore,” the bank said in a statement on Monday.

In accordance with the Resolution Framework for Covid-19 announced by RBI on August 6, 2020, as at December 31, 2020, the bank has approved, for certain eligible borrowers, one-time restructuring of 0.28 per cent of net advances, it further said.

As at December 31, 2020, gross non performing assets was 2.26 per cent and net NPA was 0.50 per cent.

Had the bank classified the borrowers more than 90 days overdue on December 31, 2020 as NPA, gross NPA would be 3.27 per cent (September 30, 2020: 2.70 per cent); net NPA would be 1.24 per cent (September 30, 2020: 0.74 per cent), it further said, adding that it has made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium.

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