Tag: Q2 net profit

Federal Bank Q2 net profit up 49.6%

Banking & Finance

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Federal Bank reported a 49.6 per cent jump in its standalone net profit at ₹460.26 crore in the second quarter of the fiscal from ₹307.62 crore in the corresponding period a year ago.

This was aided by higher net interest income and lower provisions.

For the quarter-ended September 30, 2021, Federal Bank reported a net interest income growth of 7.2 per cent to ₹1,479.42 crore versus ₹1,379.85 crore a year ago.

Other income marginally fell by 1 per cent on an annual basis to ₹444.46 crore in the second quarter of 2021-22.

Net interest margin stood at 3.2 per cent as on September 30, 2021.

Provisions fell by 53.9 per cent to ₹245.33 crore in the second quarter compared to ₹532.09 crore a year ago.

Asset quality

Gross non-performing assets stood at 3.24 per cent of gross advances as on September 30, 2021 from 2.84 per cent on September 30, 2020. It, however, fell on a sequential basis from 3.5 per cent as on June 30, 2021.

Net NPA stood at 1.12 per cent of net advances at the end of the second quarter from 0.99 per cent a year ago and 1.23 per cent as on June 30, 2021.

Provision Coverage Ratio (including technical write-offs) stood at 79.33 per cent.

“We witnessed strong traction in NIM and pick-up in NII on the back of good credit growth in certain segments. Strong recovery and upgrades helped in virtually no credit cost for the quarter,” said Shyam Srinivasan, Managing Director and CEO, Federal Bank, adding that the digital story of the bank continues to prosper with fintech partnerships progressing well and contributing to over 50 per cent of new accounts booked.

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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 stood at ₹129.37 crore in the second quarter of last fiscal.

For the quarter-ended September 30, 2021, Yes Bank 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 stood at 2.2 per cent in the second quarter of the fiscal as against 3.1 per cent in the corresponding period last fiscal. Non-interest income jumped by 30.2 per cent on a year-on-year basis to ₹778 crore during the quarter.

Provisions were 65 per cent lower at ₹377 crore in the second quarter as against ₹1,078 crore a year ago. Asset quality saw some improvement but non-performing assets remained high.

Gross NPAs stood at ₹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 stood at 5.55 per cent of net advances at the end of the second quarter as against 4.71 per cent a year ago.

Prashant Kumar, Managing Director and CEO, Yes Bank said the resolution momentum of the bank continues with ₹987 crore of cash recoveries and ₹969 crore of upgrades in the second quarter of the fiscal.

“We are on track to meet the target of ₹5,000 crore through recoveries and upgrades this fiscal,” he told reporters.

Dish TV

On the issue of Dish TV, Kumar said the bank is doing everything to secure the asset and will explore legal recourse to maximise the recovery.

The bank would inform if and when it approaches the courts on the issue.

The bank is also moving toward setting up its asset reconstruction company (ARC) and expects to announce the name of the foreign partner in the next 60 days. “We have got a fantastic response from international investors. We hope to conclude the deal before the end of the financial year,” he said, adding that the lender will transfer all NPAs to the ARC.

“We will make our bank 0 per cent NPA as of March 31, 2022,” he said.

Restructuring

The bank said that ₹421.01 crore of the ₹4,621.74 crore restructured under the Reserve Bank of India’s Resolution Framework 1.0 had slipped into NPA during the half-year. Of this, it has written-off ₹8.06 crore.

Under the Resolution Framework 2.0, it has received requests for resolution of 17,778 personal loans, 2,634 business loans and 1,588 small businesses involving a total exposure of ₹857.64 crore. It has increased provisions by ₹125.86 crore on account of the resolution.

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LIC Housing Finance reports 69 per cent y-o-y decline in Q2 net profit at ₹248 crore

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LIC Housing Finance (LIC HFL) reported a 69 per cent year-on-year (yoy) decline in second quarter net profit at ₹248 crore against ₹791 crore in the year-ago quarter due to increase in provisions on account of implementation of resolution plans, especially in the case of corporate entities.

The housing finance company upped the provisions by ₹424.49 crore during the quarter in respect of 113 corporate entities. It had an exposure aggregating ₹4,629.46 crore to them before implementation of the resolution plans.

Total income, including other income, declined 5.35 per cent to ₹4,715 crore. Net interest income dropped 5.25 per cent y-o-y to ₹1,173 crore.

Total disbursements rise

During the quarter, total disbursements at ₹16,110 crore were up 29 per cent y-o-y.

Within overall disbursements, individual home loan disbursements were at ₹14,330 crore as against ₹10,373 crore, up by 38 per cent, whereas project loan disbursements were lower at ₹353 crore as against ₹803 crore.

Net interest margins stood at 2 per cent as against 2.20 per cent for Q1FY22.

Y Viswanatha Gowd, MD & CEO, said, “Business gradually improved towards the end of first quarter in line with the overall sentiments. This is reflected in higher disbursements in Q2…”

“The company expects a better Q3 which coincides with the festival season and hopes to grow the business volumes in the quarters ahead,” he said.

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L&T Finance Holdings’ Q2 net profit down 15.5%

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L&T Finance Holdings reported a 15.5 per cent drop in its consolidated net profit for the second quarter of the fiscal.

Its net profit stood at ₹224.03 crore for the quarter-ended September 30, 2021 as against ₹265.12 crore in the same period last fiscal. However, on a sequential basis, it posted a 26.5 per cent jump from its net profit of ₹177.02 crore in the June 2021 quarter.

Its total revenue from operations increased by 10.5 per cent to ₹3,051.82 crore in the second quarter of the fiscal from ₹3,408.1 crore a year ago. However, other income declined by 18 per cent on a year-on-year basis to ₹82.64 crore in the July to September 2021 quarter.

“In the second quarter of the fiscal, all L&T Finance Holdings businesses witnessed robust disbursement momentum,” it said in a statement on Wednesday.

Rural finance

Its rural finance business saw the highest ever second quarter disbursement at ₹4,987 crore, up 51 per cent quarter-on-quarter. The total disbursements in the quarter stood at ₹7,339 crore for the focused businesses.

“Disbursement momentum will continue to further pick-up, backed by the company’s established ability to scale up product offerings in retail by harnessing our digital and analytics strengths. LTFH is well provisioned for any short-term Covid 2.0 led disruptions,” said Dinanath Dubhashi, Managing Director and CEO, L&T Finance Holdings.

However, its total lending book fell by 12 per cent to ₹86,936 crore in the second quarter of the fiscal as against ₹98,823 crore a year ago.

It is carrying additional provisions and one-time restructuring provisions of ₹1,747 crore or 2.22 per cent of the standard book in the second quarter of the fiscal.

The Gross Stage 3 assets in absolute terms stood at ₹4,796 crore in the second quarter of the fiscal, as against ₹4,881 crore in the first quarter and ₹4,921 crore in the second quarter of 2020-21.

In percentage terms, the GS3 and NS3 assets of the company stood at 5.74 per cent and 2.81 per cent respectively with PCR on Stage 3 assets at 52 per cent.

The company said collections have normalised across businesses in the second quarter of the fiscal led by smart data analytics, concerted field efforts and gradual unlocking of the economy

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ICICI Prudential Life posts 47% rise in Q2 net profit

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ICICI Prudential Life Insurance reported a 46.6 per cent jump in its net profit for the second quarter of the fiscal, aided by robust growth in premium income.

For the quarter-ended September 30, 2021, the private sector life insurer posted a net profit of ₹444.57 crore as against a net profit of ₹303.22 crore in the same period last fiscal.

Net premium income increased by 8.33 per cent to ₹9,286.53 crore in the second quarter of the fiscal from ₹8,572.19 crore a year ago.

Net income from investments surged by 70.4 per cent on a year-on-year basis to ₹13,545.83 crore in the July-September 2021 quarter.

Claims and benefits

Claims and benefits paid in the second quarter of the fiscal amounted to ₹8,022 crore compared to ₹5,668 crore in the first quarter of the fiscal and ₹4,909 crore in the second quarter of 2020-21.

“Claims and benefit payouts increased by 82.4 per cent from ₹7,504 crore in the first half of 2020-21 to ₹13,690 crore in the first half this fiscal primarily on account of increase in surrender and withdrawals and death claims. The company had Covid-19 claims (net of reinsurance) of ₹862 crore,” ICICI Prudential Life Insurance said in a statement on Tuesday.

The insurer’s solvency ratio was 199.9 per cent as on September 30, 2021 versus 193.7 per cent as on June 30, 2021 and 205.5 per cent as on September 30, 2020.

Its 13th month persistency ratio was 81.3 per cent as on September 30, 2021 versus 80.5 per cent a year ago.

NS Kannan, Managing Director and CEO, ICICI Prudential Life Insurance said, “The improvement in the pandemic situation with each passing month, increased consumer awareness on the need for life insurance and our suite of customer-centric products have enabled us to grow new business by 62 per cent sequentially this quarter. Significantly, we posted our best ever September on monthly sales for any year since inception, aided by our well-diversified product and distribution channel mix.”

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