Tag: Q2

Aditya Birla Capital reports 43% jump in Q2 net profit

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Aditya Birla Capital reported a 42.6 per cent surge in its consolidated net profit to ₹376.9 crore in the second quarter of the fiscal, led by robust growth in revenue. Its net profit was ₹264.34 crore in the corresponding quarter of last fiscal.

This was its highest ever consolidated quarterly profit.

For the quarter ended September 30, total revenue from operations rose by 21.7 per cent to ₹5,593.22 crore from ₹4,595.17 crore in the same period last year.

Also see: Primary market to sparkle with IPOs worth over ₹30,000 crore in November

“The company, through its subsidiaries, continues to maintain its track record of delivering strong performance through market and macroeconomic cycles, backed by its diversified business model,” it said in a statement on Monday.

Its retailisation strategy has led to the active customer base growing by 42 per cent year-on-year to about 2.8 crore.

Rise in AUM

Overall assets under management across asset management, life insurance and health insurance businesses grew 24 per cent-year on year, to over ₹3,70,290 crore.

The overall lending book (NBFC and housing finance) was ₹59,060 crore as of September 30.

The gross premium across life and health insurance for the half year grew 25 per cent year-on-year to ₹5,685 crore.

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HDFC Q2 net profit up 32%

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Housing Development Finance Corporation (HDFC) Ltd reported a 31.7 per cent jump in its standalone net profit for the second quarter of the fiscal at ₹3,780.5. Its net profit was ₹2,870.12 crore in the corresponding quarter last fiscal.

The net interest income for the half year ended September 30, 2021 stood at ₹8,255 crore compared to ₹7,039 crore in the previous year, representing a growth of 17 per cent.

The reported Net Interest Margin was 3.6 per cent.

“The demand for home loans continues to remain strong. Growth in home loans was seen in both the affordable housing segment as well as in high end properties. The increasing sales momentum and new project launches augurs well for the housing sector,” HDFC said in a statement on Monday.

During the half-year ended September 30, 2021, individual approvals and disbursements grew by 67 per cent and 80 per cent respectively compared to the corresponding period in the previous yea

Individual disbursements in the month of October 21 were the highest ever in a non-quarter end month, it further said.

The collection efficiency for individual loans on a cumulative basis improved to stand at over 98 per cent during the quarter ended September 30, 2021.

The provisions as at September 30, 2021 stood at ₹13,340 crore

As per regulatory norms, the gross non-performing loans as at September 30, 2021 stood at ₹10,341 crore. This is equivalent to 2 per cent of the loan portfolio compared to 2.24 per cent as on June 30, 2021.

As at September 30, 2021, loans restructured under the RBI’s Resolution Framework for Covid-19 Related Stress (OTR 1 & 2.0) was equivalent to 1.4 per cent of the loan book (as at June 30, 2021: 0.9 per cent of the loan book). Of the loans restructured, 63 per cent are individual loans and 37 per cent are non-individual loans. Of the total restructured loans, 35% is in respect of just one account.

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Capri Global Capital Q2 standalone net dips 21% to ₹41 crore

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Capri Global Capital Ltd (CGCL) reported a 21 per cent year-on-year (yoy) drop in second quarter standalone net profit at ₹41 crore against ₹52 crore in the year ago period as growth in total expenses outstripped growth in total income.

While total income was up 16 per cent yoy at ₹171 crore (₹147 crore in the year ago quarter), total expenses rose 48 per cent yoy at ₹114 crore (₹77 crore).

The non-banking finance company’s loan portfolio (standalone) increased 21 per cent to ₹3,797 crore and investment portfolio was up 33 per cent to ₹553 crore.

During the reporting quarter, the company implemented resolution plans in the case of 571 accounts aggregating ₹180 crore under the RBI’s August 6, 2020, circular on “Resolution Framework for Covid-19-related Stress”.

CGCL’s consolidated net profit ( including results of Capri Global Housing Finance and Capri Global Resource) declined 14 per cent to ₹52.5 crore (₹61 crore).

Disbursals (consolidated: MSME, construction finance and housing finance) jumped over three times to ₹585 crore during the quarter against ₹190 crore in the year ago quarter.

Assets under management (consolidated) was up 27 per cent at ₹5,271 crore (₹4,147 crore).

Also read: Capri Global launches ‘Prime’ affordable housing loans

Net interest margin (NIM) declined to 9.6 per cent from 10.6 per cent in the year ago quarter. However, NIM in the reporting quarter was up vis-a-vis preceding quarter’s 9.3 per cent.

Gross stage 3 (credit impaired) assets rose to 3.26 per cent of gross advances against 2.18 per cent in the year ago quarter. However, the proportion of such assets in the reporting quarter was down vis-a-vis preceding quarter’s 3.45 per cent.

Net stage 3 assets rose to 0.61 per cent of net advances against 0.12 per cent in the year ago quarter. However, the proportion of such assets in the reporting quarter was down vis-a-vis preceding quarter’s 0.81 per cent.

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IDFC First Bank Q2 net profit surges 50%

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Private sector lender IDFC First Bank reported a near 50 per cent jump in its standalone net profit in the second quarter of this fiscal year, driven by growth in core operating income and lower net credit losses. The bank’s standalone net profit rose by 49.6 per cent to ₹152 crore in the second quarter of the fiscal from ₹101 crore in the second quarter of last fiscal.

Net interest income grew by 27 per cent year on year to ₹2,272 crore in the quarter ended September 30, up from ₹1,784 crore in the second quarter of last fiscal. Net interest margin improved to 5.76 per cent for the second quarter of the fiscal from 4.91 per cent as on September 30, 2020, and 5.51 per cent as on June 30, 2021.

“The NIM expansion was primarily driven by the gradual improvement in the cost of funds, mainly the cost of deposits,” IDFC First Bank said in a statement on Saturday.

Also see: IOB stays on strong profit curve

Other income surged to ₹779.70 crore for the second quarter of the fiscal from ₹166 crore a year ago.

The bank said fee income growth was contributed to primarily by the fees related to retail loans, transaction fees, distribution and wealth management fees.

Provisions double

Provisions however, more than doubled and increased by 122.5 per cent to ₹474.94 crore in the July to September 2021 quarter from ₹213.4 crore a year ago. But on a sequential basis, they dropped sharply from ₹1872.3 crore in the firs quarter of the current fiscal.

“The bank utilised ₹560 crore of Covid provision in the second quarter of the fiscal and carrying forward ₹165 crore of provision for future. The bank expects the net credit loss for the retail loan segment to normalise from here on assuming there is no further disruption in the economy due to a new wave of Covid-19,” IDFC First Bank said.

Asset quality remained under pressure although non performing loans declined on a sequential basis.

NPAs fall sequentially

Gross non performing assets rose to ₹4,485.52 crore as on September 30, 2021, amounting to 4.27 per cent of gross advances. This was lower than 4.61 per cent as on June 30, 2021 but significantly higher than 1.62 per cent a year ago.

Net NPAs also rose to 2.09 per cent of net advances as on September 30, 2021 compared to 0.43 per cent a year ago. But it was lower than 2.32 per cent at the end of the first quarter.

The bank said the impact of the second wave of the pandemic is gradually diminishing and this improvement is showing in the improvement in asset quality.

One infrastructure loan (Mumbai Toll Road account) had become NPA during the last quarter.

Also see: Automobile sales in the slow lane

On the overall bank level but for this one infrastructure account, which it hopes to cure in due course, the GNPA and NNPA would have been 3.47 per cent and 1.42 per cent respectively as of September 30, 2021.

Restructuring for the overall portfolio stood at 2.9 per cent of the total funded assets as of September 30, 2021.

V Vaidyanathan, Managing Director and CEO, IDFC First Bank, said, “We are seeing strong revival of the economy and strong demand for home loans, loan against property, MSME and consumer loans. The retail loan book is now highly diversified across over 10 lines of business and millions of customers.”

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RBL Bank Q2 net profit down 78.6%

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Private sector lender RBL Bank reported a 78.6 per cent drop in its standalone net profit for the second quarter of the fiscal on the back of higher provisions and lower interest income.

For the quarter ended September 30, 2021, the bank reported standalone net profit of ₹ 30.8 crore as against ₹144.16 crore in the same period last fiscal.

Its net interest income fell by two per cent on a year on year basis to ₹915 crore in the July to September 2021 quarter from ₹932 crore a year ago.

Net interest margin was also lower at 4.06 per cent as on September 30, 2021 from 4.34 per cent a year ago.

However, other income shot up by 42 per cent to ₹593 crore for the second quarter of the fiscal from ₹418 crore in the corresponding quarter last fiscal.

Provisions jumped up by 33.6 per cent to ₹651.49 crore in the second quarter of the fiscal versus ₹487.56 crore a year ago.

Asset quality deteriorated

The bank’s gross non performing assets rose to ₹3,130.93 crore or 5.4 per cent of gross advances as on September 30, 2021 from 3.34 per cent a year ago. Net NPAs also increased to 2.14 per cent of net advances from 1.38 per cent as on September 30, 2020.

“The economic environment is bouncing back strongly as the pace of vaccination quickens in the country. Our bank is also confident of reverting to normalised levels of business, growth and profitability from the current (third) quarter itself and are on track to exit this financial year with strong profitability ratios setting us up well for 2022-23,” said Vishwavir Ahuja, Managing Director and CEO, RBL Bank.

The bank had a provision coverage ratio, excluding technical write-offs, of 61.7 per cent.

It had an exposure of ₹846.61 crore to accounts where it implemented restructuring under the Reserve Bank of India’s Resolution Framework 1.0 and ₹645.47 crore under Resolution Framework 2.0.

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Indian Bank more than doubles net profit in Q2

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Public sector lender Indian Bank reported a notable performance across parameters — double-digit growth in operating profit, more than two-fold increase net profit, reduction in net NPA, growth in CASA (current account savings account) and rise in businesses of RAM (retail, agriculture and MSME) sector – for the quarter ended September 30.

The Chennai-headquartered bank, which is now an amalgamated entity of Indian Bank and Allahabad Bank, reported net profit of ₹1,089 crore for the second quarter of this fiscal compared to ₹412 crore in Q2 of the last fiscal, helped by higher operating profit, growth in non-interest income and lower provisions.

Across parameters

Operating profit of the company grew 11 per cent to ₹3,276 crore (₹2,942 crore), on the back of 26 per cent rise in non-interest income at ₹1,966 crore (₹1,558 crore), aided by higher recovery of bad debts and forex income. Its net interest income (NII) fell marginally to ₹4,084 crore (against ₹4,144 crore).

Also see: ‘RBI should allow the rupee to appreciate’

“The bank’s net and operating profits have increased, asset quality is under control, growth is happening in RAM sectors, CASA continues to increase and improvements across functions such as digital banking,” said Shanti Lal Jain, Managing Director & CEO of Indian Bank.

Strong recovery

Total provisions were lower by 14 per cent at ₹2,187 crore (₹2,530 crore in Q2FY21). Loan loss provisions were at ₹2,216 crore (₹1,880 crore).

Fresh slippages were higher at ₹3,952 crore (₹249 crore), mainly due to an NBFC account that accounted for ₹1,821 crore.

“Barring this, slippages of about ₹2,000 crore is just 0.5 per cent of the book. But, higher recovery helped us to maintain the asset quality,” Jain said.

Cash recovery was higher at ₹831 (₹795 crore) and total recovery stood at ₹3,426 crore against ₹1,168 crore. Domestic advances grew 5 per cent to ₹374,508 crore (₹356,627 crore). Retail, Agriculture and MSME loans grew by 14 per cent (₹73,376 crore), 16 per cent (₹82,857 crore) and 8 per cent (₹70,268 crore). The three segments accounted for 60 per cent of advances.

Also see: Mobile payments growing faster than card payments

Total deposits grew 10 per cent to ₹551,472 crore (₹501,956 crore). CASA was maintained at 41 per cent.

Lower NPAs

Gross NPAs was at 9.56 per cent compared to 9.89 per cent in the year-ago quarter and 9.69 per cent in the previous quarter. Net NPA was higher at 3.26 per cent when compared with 2.96 per cent a year ago, but down from 3.47 per cent in the preceding quarter.

“Our SMA1 and SMA2 are decreasing and collection efficiencies are improving. With this trend, we don’t have worries on the asset quality side. Our NII has grown sequentially and we have brought the cost of deposits to below 4 per cent. Therefore, when the economy gradually hits the growth path, our credit growth will also happen. As a result, our interest income will increase,” said Jain.

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SBI Card net up 67% in Q2

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SBI Card, the country’s largest pure play credit card issuer, on Thursday reported a 67 per cent increase in net profit for the quarter ended September 30 at ₹305 crore, up from ₹206 crore in the corresponding quarter last year.

Total revenue for the quarter under review increased 7 per cent to ₹2,695 crore (₹2,510 crore), a statement issued by the company said.

Also see: ‘RBI should allow the rupee to appreciate’

The card-in-force grew 14 per cent in second quarter to 1.26 crore (1.10 crore). While retail spends grew 41 per cent to ₹35,070 crore (₹24,863 crore), corporate spends surged 80 per cent to ₹8,491 crore (₹4,728 crore).

For the six months ended September 30, SBI Card reported a net profit of ₹650 crore, up 8 per cent from net profit of ₹599 crore recorded in the same period last year.

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Mahindra & Mahindra Financial Services Q2 net profit up at ₹1,103 crore

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Mahindra & Mahindra Financial Services consolidated net profit surged by 212.9 per cent to ₹1,102.94 crore in the second quarter of the fiscal. Its net profit was ₹352.51 crore in the same period last fiscal.

However, its total income declined by four per cent to ₹2,951 crore during the quarter ended September 30, 2021, as against ₹3,071 crore during the corresponding quarter last year.

“During the quarter, the company increased its shareholding in Ideal Finance Limited (IFL), Sri Lanka from 38.2 per cent to 58.2 per cent. IFL is now a subsidiary of the company. This stake increase has resulted in revaluation of existing equity stake in IFL, which led to a one-time revaluation gain of Rs 21 crore, which is shown as exceptional item in the second quarter 2021-22 consolidated financials,” Mahindra Finance said in a statement on Thursday.

Disbursements grew by 61 per cent year on year on year to ₹6,475 crore in the second quarter of the fiscal. “But for the supply side issues, the disbursements would have grown further,” the company added.

It also reported improvement in collection efficiency month on month – 95 per cent in July, 97 per cent in August and peaking at 100 per cent in September.

The company has a restructured book of 1,04,130 contracts as on September 30, 2021 with an underlying AUM of ₹4,390 crore.

Out of these, 96,391 contracts are classified in Stage-2 as the company believes that the stress in these contracts is temporary, caused by second wave of Covid-19, Mahindra Finance said.

As collection efforts intensified, the gross non performing assets improved sequentially to 12.7 per cent as on September 30, 2021 from from 15.5 per cent as on June 30, 2021.

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Karnataka Bank Q2 net up 5 per cent

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Karnataka Bank registered a 5.17 per cent rise in its second quarter net profit at ₹125.61 crore as against a net profit of ₹119.44 crore in the corresponding period of 2020-21.

Net interest income increased 10.83 per cent to ₹637.10 crore in Q2 as against ₹574.87 crore in the same period last fiscal. Fee-based income stood at ₹164.37 crore (₹121.46 crore).

Speaking to BusinessLine, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said these factors indicate that there is significant improvement in the core business.

He stated non-performing assets (NPAs) of the bank have also further moderated during the quarter. Mahabaleshwara also noted that year-on-year comparison of NPAs is not fair during the current quarter because there was a standstill clause for the identification of the NPAs in the corresponding period a year ago. He said gross NPAs reduced to 4.5 per cent during Q2FY22 against 4.82 per cent in Q1FY22, and net NPAs also reduced to 2.84 per cent against 3 per cent in Q1FY22.

Credit growth

Stating the bank has been able to sail through one more pandemic-affected quarter with flying colours, he indicated that credit growth is back on track. Karnataka Bank added net fresh credit of ₹2,676.73 crore during Q2, he said.

On the 12.89 per cent decline in the operating profit, he said this is because of meagre trading profits during the period. The bank recorded an operating profit of ₹389.59 crore during the second quarter of 2021-22 as against ₹447.26 crore in the corresponding period of 2020-21. The trading profit of the bank stood at ₹6.5 crore (₹155.18 crore) during the period.

The bank has been able to continuously maintain the PCR at above 70 per cent and CRAR at 14.48 per cent. He said the net interest margin of the bank improved by 23 bps and now stands at 3.31 per cent (3.08 per cent).

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Shriram City Union Finance posts 10% growth in Q2 net profit

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Shriram City Union Finance has reported a 10 per cent year-on-year (y-o-y) increase in second-quarter standalone net profit at ₹282 crore, against ₹257 crore in the year-ago quarter.

The board of directors of the non-banking financial company, whose product segments include small enterprise finance, two-wheeler loans, loan against gold and personal loans, among others, have declared an interim dividend of 100 per cent (₹10 per equity share of face value ₹10 fully paid) for the financial year 2021-22.

Net interest income (interest income less finance costs) was up about 6 per cent y-o-y to ₹899 crore (₹851 crore in the year-ago quarter).

‘Microfinance lenders should not put profit above social objectives’

Fee and commission income rose 80 per cent y-o-y to ₹18 crore (₹10 crore) and bad debts recovery soared 200 per cent y-o-y to ₹51 crore (₹17 crore).

Net interest margin increased to 12.91 per cent as at September-end 2021, against 12.58 per cent as at September-end 2020.

Loan disbursements jumped about 110 per cent y-o-y to ₹6,423 crore (₹3,061 crore). Assets under management rose 10.5 per cent y-o-y to ₹30,425 crore (₹27,537 crore).

IndusInd Bank Q2 net profit up 72%

The NBFC said pre-provision profit at ₹579 crore is its highest in 12 quarters.

Gross stage 3 assets (credit-impaired loans) position improved to 6.86 per cent of gross advances as at September-end 2021, against 6.91 per cent as at June-end 2021. However, they were up vis-a-vis the September-end 2020 level of 6.67 per cent.

Net stage 3 assets edged up a shade to 3.47 per cent of net advances vis-a-vis 3.46 per cent in the preceding quarter. These assets were at 3.16 per cent as at September-end 2020.

The company’s consolidated (including results of Shriram Housing Finance) net profit increased by 9 per cent to ₹301 crore (₹275 crore).

Consolidated AUM rose about 14 per cent y-o-y to ₹34,680 crore (₹30,316 crore).

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