Tag: quarterly results

Manappuram Finance Q2 net profit declines at Rs370 crore

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Manappuram Finance Ltd has reported a consolidated net profit of ₹370 crore for the second quarter of FY 22. The profit is lower by 8.8 per cent compared to ₹ 405.44 crore reported in the year-ago quarter.

However, the company’s consolidated assets under management (AUM) grew by 5.7 per cent to ₹28,421.63 crore from ₹26,902.73 crores a year ago, and by 14.8 per cent in comparison to ₹24,755.99 crore reported in the preceding quarter (Q1).

Net profit for the standalone entity (which excludes subsidiaries) was at ₹355.00 crore against ₹405.56 crore in the year-ago quarter. Total consolidated operating income for the quarter amounted to ₹1,531.92 crore compared to ₹1,565.58 crores in the year ago quarter.

The Board approved payment of interim dividend of ₹ 0.75 per share with face value of ₹2.

V P Nandakumar, MD & CEO, Manappuram Finance Ltd said, “The key takeaway is the robust growth recorded during the quarter in our business volumes, be it gold loans, microfinance, or our home and vehicle loans portfolio. It reflects the emerging recovery in the rural and unorganized sectors of the economy and going forward we expect to sustain the growth along with improved profitability.”

The company’s gold loan portfolio stood at ₹18,719.53 crores, registering a strong growth of 13.2 per cent over ₹16,539.51 crores in the preceding quarter. The number of live gold loan customers increased from 24.1 lakh to 25.1 lakh in this period.

The subsidiary, Asirvad Microfinance ended the quarter with an AUM of ₹7,162.49 crore, a sharp increase of 44.1 per cent in comparison to ₹4,971.03 crore in the year ago quarter. The home loans subsidiary, Manappuram Home Finance Ltd., reported an AUM of ₹732.19 crore (₹620.62 crore in Q2 of FY2021) while its Vehicles & Equipment Finance division posted an AUM of ₹1,267.08 crore (₹1,062.28 crore in Q2 of FY2021). In aggregate, the company’s non-gold loan businesses account for a 34 per cent share of its consolidated AUM.

Average borrowing costs for the standalone entity declined by 67 basis points to 7.94 per cent during the quarter. The gross NPA (standalone) stood at 1.59 per cent with net NPA reported at 1.30 per cent The company’s consolidated net worth stood at ₹7,967.90 crores as of September 30, 2021. The book value per share was at₹94.14 and its capital adequacy ratio (standalone) stood at 31.84 per cent.

On a consolidated basis, the total borrowings of the company stood at ₹25,024.14 crores while the total number of live customers was 52.11 lakh as of September 30, 2021.

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HDFC Life expects muted third wave, says reserves should suffice for future claims, BFSI News, ET BFSI

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HDFC Life Insurance‘s reserves will be sufficient for future claims as the intensity of any subsequent COVID wave will be muted, said Vibha Padalkar, managing director and chief executive officer of HDFC Life Insurance, at the quarterly results‘ press conference.

The insurer is bullish on the impact of COVID, as the number of vaccinations have the crossed 1-billion mark. ” In addition, the recent macroeconomic data augurs well for the economy and is indicative of swifter recovery trends. Consumer sentiment remains buoyant and we are optimistic about sustained increase in business in the coming few months,” the company said in a filing.

The life insurer on Friday announced a 15.9% fall in its consolidated net profit to Rs 274.16 crore in Jul-Sep, as against Rs 326.09 crore a year ago.

Padalkar is optimistic about the second half of FY22, citing new bancassurance partnerships and agency channels. On the acquisition of Exide Life Insurance Co, Padalkar expects HDFC Life to receive the approval from the regulator by late third quarter or early fourth quarter.

Total income of the insurer in the second quarter, however, rose to Rs 20,478 crore against Rs 16,426 crore a year ago, while the net premium income increased by 52% to Rs 11,445 crore from Rs 10,056 crore, the insurer said in a regulatory filing.

“Value of new business (VNB) recorded a robust 30% growth to Rs 1,086 crore over last year. Our profit after tax stands at Rs 577 crore for H1, 26% lower than H1 FY21, on the back of higher claims reserving warranted by the second wave of the pandemic,” said Padalkar.

The insurer settled around two lakh claims in the first half of the fiscal. Gross and net claims amounted to Rs 3,640 crore and Rs 2,466 crore, respectively, against an anticipated net claims of Rs 1,690 crore, the management said in a post-earnings call. The excess Rs 776 crore was paid out of reserves, which stood at Rs 204 crore as on 30 September.

The company’s overall experience has been in line with their projections, and an Excess Mortality Reserve (EMR) of Rs 204 crore is being carried into the second half of FY22, the company said in a filing. Its solvency ratio was at 190% compared with 203% a year ago, while its 13th month persistency was at 84.8% against 83.9% around the same period last fiscal.



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Shriram City expects to return to pre-Covid levels by Q2

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Shriram City Union Finance (SCUF) expects to return to the pre-Covid level of disbursements by the second quarter of this fiscal, backed by a steady pick up in demand across two-wheeler loans, loan against gold, personal loans and MSME finance.

According to YS Chakravarti, MD and CEO, Shriram City Union Finance, the company is looking to “aggressively push” two-wheeler as well as gold loans. While it also plans to push personal loans and SME loans, it will continue to remain cautious and prefer to lend to its existing customers.

“We normally do disbursements worth ₹6,500-6,600 crore during a quarter. We disbursed close to ₹2,000 crore in July alone, and we hope to register close to ₹6,000 crore during the second quarter of this fiscal,” Chakravarti told BusinessLine.

Also read: Shriram City, STFC raise ₹2,000 crore through retail fixed deposits in July

The NBFC had registered disbursements to the tune of ₹4,560 crore in Q1 FY22. While on a year-on-year basis it was higher by around 244 per cent, sequentially it was down by around 31 per cent when compared to ₹6,570 crore in Q4 FY21, due to lockdowns and limited business activities. However, things have been improving since June-July this year and the trend is expected to continue moving forward.

Sector-wise growth

As on June 30, 2021, Assets under Management (AUM) was ₹29,599 crore. The share of small enterprises finance came down to nearly 49 per cent of the AUM as on Q1 FY22 against 58 per cent in the same period last year.

The share of two-wheeler loans increased to 23 per cent (21 per cent); loan against gold was up at 15 per cent (10 per cent) and personal loans increased to eight per cent (six per cent) in the same period.

“NBFCs catering to MSME on the manufacturing side have been affected. Strategically, we work with the trading community; call it providence or the heritage (of the company), a majority (nearly 80 per cent) of our exposure has been to the trading communities and SMEs engaged in essential services, limiting the fallout due to Covid.

“But we are still cautious about this segment. Nearly 70-75 per cent of our lending is to the existing customers,” he said.

Also read: Shriram Housing Finance Q1 net profit up 82%

However, the company expects the share of SMEs to increase to 50-55 per cent of total business in the next two to three years, given the “immense scope for lending” and shortage of available funding options for the sector.

Nearly 80-90 per cent of the company’s two-wheeler loan book is in Tier II and rural markets, where the customers are either self employed or own small business. Nearly 98 per cent of the funding is for commuter vehicles and not high value bikes so the delinquency is low, he said.

GNPA

The company’s gross non-performing asset (GNPA) increased sequentially to 6.91 per cent in Q1 FY22 from 6.37 per cent in Q4 FY21; however, on a year-on-year basis, it improved from 7.28 per cent in Q1 FY21.

With collections improving on a month-on-month basis, the GNPA should pull back to March levels. “The NBFC’s collection efficiency in May was around 86 per cent; it went up to 93 per cent in June and in July it was almost 100 per cent,” he said.

Also read: Shriram City Union Finance Q1 net up 8% at ₹208 crore

SCUF’s restructured book stood at ₹39 crore as on June 30, 2021. It is likely to restructure accounts worth ₹40 core to ₹50 crore by September this year.

The company, which has a strong presence in South and West India, is looking to strengthen its footprint in UP and Bihar. Plans are afoot to grow its network and presence in the eastern States of Odisha and West Bengal post December this year.

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IndusInd Bank net profit surges 111.7% in Q1

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Private sector lender IndusInd Bank’s standalone net profit more than doubled and surged by 111.7 per cent in the first quarter of 2021-22 led by lower provisions and robust growth in net interest income.

For the quarter ended June 30, 2021, the lender reported standalone net profit of ₹ 974.95 crore as compared to ₹ 460.64 crore in the corresponding quarter of last fiscal.

Total income grew by 7.8 per cent in the first quarter of the fiscal to ₹ 9,355.77 crore as against ₹ 8,680.92 crore a year ago.

IndusInd Bank to raise ₹30,000 cr

Net interest income

Net interest income also increased by a similar 7.7 per cent to ₹3,563.71 crore in the April to June 2021 quarter from ₹ 3,309.19 crore in the same period last fiscal.

Net interest margin was lower at 4.06 per cent as on June 30, 2021 from 4.28 per cent a year ago. In a statement on Tuesday, the bank said this was due to lower credit offtake and surplus liquidity placed under repo with RBI

Other income jumped up by 17.2 per cent on a year-on-year basis to ₹ 1,781.07 crore during the quarter.

The bank’s provisions declined by 18.4 per cent to ₹ 1,844.02 crore in the first quarter of the fiscal from ₹ 2,258.88 crore a year ago.

However, asset quality deteriorated amidst the second wave of the Covid-19 pandemic.

IndusInd Bank net profit surges 190 per cent in Q4

NPAs

Gross non-performing assets rose to ₹ 6,185.76 crore or 2.88 per cent of gross advances as on June 30, 2021 from 2.53 per cent a year ago and 2.67 per cent as on March 31, 2021.

Net NPAs were at almost the same level at 0.84 per cent of net advances as on June 30, 2021 from 0.86 per cent a year ago. However, on a sequential basis it was much higher compared to 0.69 per cent as on March 31, 2021.

Restructured book was 2.7 per cent as on June 30, 2021.

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Edelweiss Financial Services posts net profit of Rs 637 crore in Q4

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Edelweiss Financial Services posted a consolidated net profit of Rs 636.7 crore in the fourth quarter of 2020-21 as against a net loss of Rs 2,281.55 crore in the corresponding quarter a year ago.

It registered a net profit of Rs 253.91 crore for the full fiscal 2020-21 versus a loss of Rs 2,043.77 crore in 2019-20.

Total consolidated income for the quarter ended March 31, 2021 jumped to Rs 4,480.95 crore as against Rs 1,965.87 crore in the same period in the previous fiscal, Edelweiss said in a regulatory filing.

“During the year, we will continue to focus on strengthening balance sheet and liquidity; Invest in our retail credit, asset management and Insurance businesses and progress on the EWM demerger, in preparation for listing by the third quarter of 2022-23, thereby unlocking value for our shareholders. Robust equity, comfortable liquidity and agile operating platforms will give us a solid foundation as we look towards economic revival and growth in the years ahead,” said Rashesh Shah, Chairman and CEO, Edelweiss Financial Services.

The board has recommended a final dividend of Rs. 0.55 per share on the equity shares of the face value of Rs 1 each, subject to the declaration by the members at the forthcoming Annual General Meeting.

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DHFL reports net profit of Rs 96.75 crore in Q4

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Dewan Housing Finance Corporation Ltd reported a consolidated net profit of Rs 96.75 crore for the fourth quarter of 2020-21 as against a net loss of Rs 7,507.01 crore a year ago.

For the full fiscal 2020-21, it had a consolidated net loss of Rs 15,051.17 crore compared to a net loss of Rs 13,455.81 crore in 2019-20.

For the quarter ended March 31, 2021, DHFL reported a 22.4 per cent drop in its total revenue from operations at Rs 2,034.53 crore versus Rs 2,623.40 crore a year ago.

Total income also declined to Rs 2,060.57 crore for the fourth quarter last fiscal from Rs 2,160.98 crore a year ago.

“…the company has not made any provision for interest on borrowings amounting to Rs 1,91,213 lakh and Rs 7,65,155 lakh for the quarter and year ended on March 31, 2021, respectively, in view of the company’s current Corporate Insolvency Resolution Process (CIRP),” said the results.

Had the interest was accrued on borrowings and provided for, the profit for the quarter ended March 31, 2021 would have been lower by Rs 1,42,205 lakh (net of taxes) and the loss for year ended March 31, 2021 would have been higher by Rs 5,69,046 lakh respectively (net of tax), it further said.

As on March 31, 2021, it had a negative net worth of Rs 20,645.31 crore. Total assets amounted to Rs 70,358.66 crore while total liabilities stood at Rs 91,003.97 crore.

The investments and advance by way of unsecured Inter Corporate Deposit (ICD) including interest receivable aggregating Rs 4,109.24 crore are outstanding as on March 31, 2021. The provision for the entire ICD amount has been made due to lack of security.

Noting that DHFL has accumulated losses due to which its net worth has been fully eroded, the auditor’s note said that its ability to remain as a “going concern” depends on the outcome of the ongoing CIRP.

“During this quarter ended on March 31, 2021, additional transactions amounting Rs 12,73,574 lakh have been identified and reported by the company to Stock Exchanges and National Housing Bank and RBI as fraudulent, undervalued and preferential in nature,” it further 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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SBI General Insurance FY21 net profit rises 32%

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SBI General Insurance reported a 32 per cent increase in its net profit to ₹544 crore in 2020-21 as against ₹412 crore in the previous fiscal.

Its gross written premium (GWP) also grew 22 per cent to ₹8,312 crore last fiscal from ₹6,840 crore in 2019-20.

Solvency ratio was 2 in 2020-21 versus 2.27 in 2019-20. Combined ratio was 99.8 per cent last fiscal as against 98 per cent in the previous fiscal.

“SBI General’s corporate growth was primarily led by its expansive pan-India reach enabled by the increasing number of distribution partners in bancassurance, OEM tie-ups and digital integration like Indian Overseas Bank, Yes Bank, KIA Motors, Honda Siel Cars, Ford Motors, Tata Motors Pvt. Ltd., TVS Motors, Royal Enfield, Suzuki Motor Cycles, Jeep, Railyatri,” it said in a statement on Friday.

The private sector general insurer has also enhanced its customer base by more than three crore customers during 2020-21. The cumulative number of customers served till date adds up to about 8.7 crore, it said.

“Fiscal year 2020-21 demanded special focus on the Health and SME lines, and we managed to maintain a balanced growth. We are also scaling up our product bouquet and adopting digital disruptions to offer instant insurance solutions even at the distributor part, for the ease of customers,” said PC Kandpal, MD and CEO, SBI General Insurance.

In its 11 years of operations, the company has shown steady growth for the past four years, while maintaining a positive track record of underwriting.

The company declared and paid an interim dividend of 10 per cent during 2020-21.

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HDFC Life Insurance Q4 net profit up 2%

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Private sector HDFC Life Insurance reported a 2 per cent increase in standalone net profit in the quarter ended March 31, 2021, at ₹317.94 crore.

Its net profit was ₹311.71 crore in the same period in 2019-20. For 2020-21, its net profit increased by five per cent to ₹1,360.1 crore against ₹1,295.27 crore in 2019-20.

Premium income

The insurer’s net premium income grew by a robust 23 per cent to ₹12,868.01 crore for the fourth quarter of 2020-21 versus ₹10,464 crore a year ago.

“HDFC Life sold about 9.8 lakh new individual policies, registering a year-on-year growth of 10 per cent. The value of new business increased by 14 per cent to ₹2,185 crore on the back of consistent growth, balanced product mix and cost efficiencies, thereby translating to new business margin of 26.1 per cent,” it said in a statement on Monday.

Its solvency ratio was at 201 per cent as on March 31, 2021, versus 184 per cent a year ago. The 13th month persistency ratio was 90 per cent compared to 88 per cent a year ago.

Vibha Padalkar, Managing Director and CEO, HDFC Life, said the insurer has provided for a Covid reserve of ₹165 crore for 2021-22. “We will continue to review the adequacy of this reserve through the course of the fiscal year,” she said, adding that over the course of the year it settled over 2.9 lakh death claims, resulting in payouts in excess of ₹3,000 crore.

The board also recommended a final dividend of ₹2.02 per equity share of face value ₹10 each for 2020-21, subject to approval of members at the Annual General Meeting.

Based on the recommendation of the Nomination and Remuneration Committee, the board also approved the re-appointment of Vibha Padalkar as MD and CEO of the company for five years with effect from September 12, subject to approval of the members at the AGM and IRDAI.

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HDFC Bank’s third party IT audit in final stages

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The third party independent audit of HDFC Bank’s IT infrastructure is in the final stages. The last outage in its net and mobile banking services on March 30 was not a capacity issue.

The bank is also working with existing customers in the face of the temporary ban in issuance of credit cards.

“The audit by the independent third party is in the final stages, and we will update further as we get to know more from the regulators,” said Srinivasan Vaidyanathan, Chief Financial Officer, HDFC Bank in an analyst call after its fourth quarter results of the lender on April 17.

HDFC Bank is working on building capabilities in the area of core systems and is also working on migration to cloud for resiliency.

“We are also building new muscle and infusing new talent to execute these strategies and establish a digital factory,” he further said.

On the recent outage in its net and mobile banking services, he said it was “an intermittent issue on net and mobile banking that occurred due to a server hardware component failure, and has no correlation to any capacity issues”.

The Reserve Bank of India (RBI) had in February this year appointed an external IT firm for carrying out a special audit of the IT infrastructure of HDFC Bank, which has faced a number of outages in its digital banking services.

Concerned by the outages, the RBI had on December 2 last year also directed the lender to temporarily halt sourcing of new credit card customers as well as launches of digital business generating activities planned under its proposed programme ‐Digital 2.0.

Credit cards

On the credit card business, Vaidyanathan said the bank is focussing on engaging with existing customers, whose cards are either dormant or inactive to “resuscitate” them.

“This way portfolio activations and card dynamics are up, improving portfolio quality and increasing downstream activity,” he said.

Despite the temporary halt, HDFC Bank’s credit card advances grew by 12.3 per cent to Rs 64,674 crore for the quarter ended March 31, 2021 as against Rs 57,575 crore in the fourth quarter of 2019-20.

The impact of the non-issuance of cards is on new employees in corporates, on boarding of new corporates, Vaidyanathan said, adding that this loss of new customers can normally be made up within a few quarters of stoppage being lifted. This is because the bank continues to source liability customers, who will be pre-approved. “About three-fourths of our sourcing comes from existing customers of the bank,” he said.

Interest on Interest provision

The lender has also kept aside Rs 500 crore for interest on interest provisions, which is being worked with Indian Banks’ Association to standardise the computation across the system.

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