Tag: Q2

Poonawalla Fincorp: Consolidated PBT up 151% YoY

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The board of Poonawalla Fincorp Limited (PFL) today announced its unaudited results for the quarter ended September 30, 2021 (Q2FY22).

PFL reported that assets under management grew by ~6 per cent QoQ to ₹15,275 crore, while NIM increased by 104 bps YoY to 9.1 per cent in Q2 of this fiscal (eight per cent in Q2 of FY21), driven largely by a reduction in interest expenses.

“Consolidated PBT was up 151 per cent YoY, increasing from ₹50 crore in Q2FY21 to ₹126 crore in Q2FY22, driven largely by a reduction in interest expenses and credit costs. Collections showed an improving trend from 93.1 per cent in June 21 to 98 per cent in July 21 and further to 99.9 per cent in September 21.

Consequent to improvement in collections in Q2of FY22, gross stage 3 and net stage 3 assets decreased from 5.4 per cent and 2.7 per cent, respectively, as at June 21 to 4.1 per cent and 2.0 per cent, respectively as at September 21 on a consolidated basis. The company has one of the best provision coverage ratios across all three stages. The standard asset coverage ratio as at September 21 stands at 3.4 per cent (3.0 per cent in September 20); Stage 3 asset coverage ratio stands at 52 per cent (38 per cent in September 20).

Liquidity and cost of borrowings

The company continues to maintain a strong liquidity position with around ₹1,700 crore of surplus liquidity, with additional term loan sanctions in the hand of ₹1,750 crore. A significant amount of existing loans were repriced in Q2FY22, with a reduction of over 120 bps. New sanctions received at sub-6.5 per cent. The company’s long-term rating was upgraded by two notches to ‘AA+; Stable’ by Care Ratings following its review process. The short-term rating was retained at the highest level of ‘A1+’.

Revised product focus

Pursuant to the capital infusion and rebranding, the Company launched new products like Personal loans, Loans to Professionals, and SME LAP. Other products at an advanced stage of roll-out are medical equipment loans, small ticket LAP, and co-lending/fintech partnerships.

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IndusInd Bank Q2 net profit up 72%

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Private sector lender IndusInd Bank reported a 72.09 per cent year-on-year jump in standalone net profit for the second quarter of the fiscal, supported by a drop in provisions and a robust net interest income and fee income.

For the quarter ended September 30, 2021, the bank had a standalone net profit of ₹1,113.53 crore, against ₹647.04 crore during the same period last fiscal.

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Net interest income increased by 11.6 per cent to ₹3,658.4 crore (₹3,277.9 crore).

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Net interest margin stood at 4.07 per cent, marginally lower than the 4.16 per cent recorded during the second quarter of 2020-21, mainly due to surplus liquidity placed under repo with RBI.

Other income increased by 18.2 per cent on a year-on-year basis to ₹1,837.2 crore in the July to September 2021 quarter.

Provisions declined by 13.3 per cent to ₹1,703.36 crore, against ₹1,964.4 crore a year ago.

Gross non-performing assets declined sequentially to 2.77 per cent of gross advances as of September 30, 2021, against 2.88 per cent as on June 30, 2021. However, it was higher than the gross NPA level of 2.21 per cent as on September 30, 2020.

Net NPA was 0.8 per cent of net advances as of September 30, 2021, versus 0.52 per cent a year ago.

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Bajaj Finance Q2 net up 53.5%

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Bajaj Finance reported a 53.5 per cent jump in its consolidated net profit for the second quarter of the fiscal to ₹1,480.99 crore against ₹964.88 crore in the corresponding period last fiscal.

For the quarter-ended September 30, total revenue from operations increased by 18.7 per cent to ₹7,731.36 crore from ₹6,513.15 crore a year ago.

NII rises

Net interest income for the second quarter of the fiscal increased by 28 per cent to ₹5,335 crore as against ₹4,162 crore a year ago.

Interest income reversal for the quarter stood at ₹322 crore as compared to ₹216 crore in the second quarter last fiscal.

New loans booked during the second quarter were up 75 per cent to 63.3 lakh from 36.2 lakh in the second quarter last fiscal.

Loan losses and provisions for the July to September 2021 quarter stood at ₹1,300 crore as against ₹1,700 crore in the second quarter last fiscal.

“During the quarter, the company has done accelerated write-offs of ₹355 crore of principal outstanding on account of Covid-19 related stress and advancement of write-off policy,” Bajaj Finance said in a statement on Tuesday.

The company holds management and macro-economic overlay of ₹832 crore as of September 30, 2021.

Gross non-performing assets and net NPA as of September 30, 2021 stood at 2.45 per cent and 1.1 per cent respectively, as against 2.96 per cent and 1.46 per cent as of June 30, 2021.

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CSB Bank Q2 net jumps 72% on income growth

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CSB Bank reported a 72 per cent year-on-year (yoy) jump in second quarter net profit at ₹119 crore due to healthy growth in net interest income and other income, and write-back in total provisions.

The Thrissur (Kerala)-headquartered bank had recorded a net profit of ₹69 crore in the year ago quarter.

Net interest income (the difference between interest earned and interest expended) was up 21 per cent yoy at ₹278 crore (₹229 crore in the year ago quarter).

Other income, including fees earned from providing services to customers, commission from non-fund based banking activities, earning from foreign exchange transactions, selling of third-party products, profit on sale of investments (net), etc., rose about 36 per cent yoy to ₹60 crore (₹44 crore).

The bank saw a write-back of ₹9.2 crore in total provisions, including towards non-perfoming assets (NPAs) in the reportng quarter. In the year ago quarter, it made provisions aggregating ₹26.90 crore in the year ago quarter.

As of September-end, total advances grew 12.57 per cent yoy to ₹15,097 crore.

Growth in advances

The growth was mainly on the back of increase in agriculture & microfinance industry loans, gold loans, corporate loans, two-wheeler loans, new MSME loans. However, retail loans, MSME general loans and assignment loans saw a decline.

Total deposits were up 9.09 per cent to ₹19,055 crore. The proportion of low-cost current account, savings account (CASA) deposits in total deposits improved to 32.60 per cent (29.39 per cent as at September-end 2020). During the reporting quarter, fresh slippages were lower at ₹205 crore (of which ₹170 crore is on account of gold loans) against ₹435 crore in the first quarter.

Non-performing asset (NPA) reduction, including via upgradation and recoveries, was higher at ₹305 crore (₹142 crore in the preceding quarter).

CVR Rajendran, Managing Director & CEO, said: “…in terms of profitability, Q2 is a much better quarter than Q1FY22…Lot of good work has gone in managing the portfolio stress both in gold and non- gold portfolios and SMA (special mention accounts)/NPA levels were kept under control.”

He observed that CSB Bank saw return of demand in Micro, Small and Medium Enterprise (MSME), SME and Whole Sale Banking segments during the last part of the quarter. Further, visible growth is also happening in Gold loan portfolio.

As the impact of Covid is not fully ascertained, the bank decided to continue with the accelerated provisioning policy for stressed and NPA accounts, Rajendran said.

BK Divakara, CFO, emphasised that this is the first time that the bank has posted over ₹100 crore profit in a quarter. Net interest margin improved to 5.22 per cent, from 4.48 per cent in the year ago quarter.

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IDBI Bank Q2 results: Net profit up 75%

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IDBI Bank reported a 75 per cent year-on-year (yoy) increase in second quarter standalone net profit at ₹567crore, supported by a huge write-back in provisions for non-performing assets (NPAs) and lower tax expense.

The Bank had posted a net profit of ₹324 crore in the year ago quarter.

Net interest income increased 9 per cent yoy in the reporting quarter to ₹1,854 crore (₹1,694 crore in the year ago quarter).

Other income, including income from non-fund based banking activities such as commission, fees, earnings from foreign exchange and derivative transactions, and profit and loss from sale of investment, declined about 4 per cent yoy at ₹846 crore (₹881 crore).

The received a write-back of ₹1,426 crore in provisions for NPAs against ₹165 crore in the year ago quarter. Tax expense burden was lower at ₹215 crore (₹347 crore).

As at September-end 2021, gross advances barely nudged up to ₹1,64,506 crore (₹1,63,841 crore as at September-end 2020).

Rakesh Sharma, MD & CEO, said the Bank has built up a sanctions pipeline in the mid and large corporate segments and disbursals are expected to pick up from year-end onwards.

The Bank expects to grow its corporate loan book by about ₹6,000 crore in the current financial year.

Samuel Joseph, Deputy Managing Director, said the Bank has an exposure of about ₹400 crore to the SREI group, which is undergoing corporate insolvency resolution process, and has made 100 per cent provision towards this exposure. IDBI Bank recovered ₹196 crore from DHFL.

P Sitaram, CFO, emphasised that the Bank will grow the corporate loan book even as the emphasis will continue to be on structured retail loans.

Gross NPAs declined about ₹1,186 crore during the reporting quarter to ₹34,408 crore.

Gross NPAs as a percentage of gross advances declined to 20.92 per cent against 21.48 per cent in the preceding quarter. Net NPAs, however, nudged up to 1.62 per cent of net advances against 1.56 per cent.

Fresh slippages rose by ₹1,438 crore (₹1,332 crore in the first quarter). The Bank settled NPAs aggregating ₹1,436 crore (₹587 crore).

ends

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ICICI Lombard Q2 net rises 7.4%

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ICICI Lombard General Insurance reported a 7.4 per cent jump in its net profit for the second quarter of the fiscal at ₹446.67 crore. Its net profit was ₹415.74 crore in the same period last fiscal.

“The financials for the current year represent numbers of the merged entity, accordingly the first quarter of 2021-22 has been restated. The comparative numbers for the previous year in the financials pertain to standalone ICICI Lombard and hence are not comparable,” ICICI Lombard General Insurance said in a statement on Thursday.

This follows its acquisition of the non-life insurance business of Bharti AXA General Insurance. On September 3, the firm had announced that it had received regulatory and other approvals from IRDAI for the demerger of general insurance business of Bharti AXA General.

Premium income

For the quarter-ended September 30, 2021, ICICI Lombard posted a 32 per cent increase in its net premium income to ₹3,250.29 crore as against ₹2,462.52 crore in the corresponding quarter in 2020-21.

Net income from investments also soared by 35 per cent on a year-on-year basis to ₹551.75 crore in the second quarter of the fiscal.

Claims paid by the general insurer shot up by 76.6 per cent to ₹2,119.32 crore in the second quarter of the fiscal from ₹1,200.27 crore a year ago.

Claims for the first half of the fiscal include impact of Covid claims on health book of ₹561 crore as against ₹115 crore in the first half of 2020-21 and ₹339 crore in the fiscal year 2020-21, it said in its investor presentation.

Combined ratio stood at 105.3 per cent in the second quarter of the fiscal as against 99.7 per cent a year ago. Solvency ratio stood at 2.49x as at September 30, 2021 as against 2.61x at June 30, 2021.

The board of directors of the company declared an interim dividend of ₹4 per share for the first half of the fiscal year.

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RBI’s first purchase of G-Secs under GSAP 2.0 for Q2 on July 8

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The Reserve Bank of India (RBI) will buy five Government Securities (G-Secs) aggregating ₹20,000 crore under its G-sec Acquisition Programme (G-SAP 2.0) on July 8.

This will be the first purchase of G-Secs under G-SAP 2.0. The central bank will be purchasing five G-Secs, maturing between 2027 and 2033.

Overall, in the second quarter, the central bank will conduct open market purchase of G-Secs of ₹1.2 lakh crore under the G-SAP to support the market.

Under G-SAP 1.0, RBI committed upfront a specific amount (₹1-lakh crore in the first quarter of FY22) of open market purchases of G-Secs to enable a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions.

“The endeavour (of G-SAP) will be to ensure congenial financial conditions for the recovery to gain traction…The positive externalities of G-SAP 1.0 operations need to be seen in the context of those segments of the financial markets that rely on the G-sec yield curve as a pricing benchmark,” RBI Governor Shaktikanta Das said in a statement on April 7, 2021.

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House Price Index moderated at 1.1% in Q2, says RBI

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The annual growth (y-o-y) in all-India House Price Index (HPI) continued to moderate, standing at 1.1 per cent in Q2 of 2020-21 (July-September), compared with 2.8 per cent in the previous quarter and 3.3 per cent a year ago, according to Reserve Bank of India (RBI) data.

The central bank observed that the all-India HPI contracted by (-) 1.1 per cent on a sequential basis (quarter-on-quarter/QoQ) in Q2:2020-21; among major cities, Delhi, Bengaluru, Kolkata and Chennai recorded sequential decline in HPI, whereas house prices in Mumbai remained around the previous quarter’s level.

The maximum contraction in HPI was in the case of Chennai at 4.72 per cent, followed by Bengaluru (3.73 per cent).

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