Tag: reports

AU Bank reports 13% decline in Q2FY22 net profit

Banking & Finance

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AU Small Finance Bank reported a 13 per cent year-on-year (y-o-y) decline in second quarter net profit at ₹279 crore despite robust increase in net interest income (NII) as the bottomline in the year-ago period was bumped up by income from sale of part stake in Aavas Financiers.

The Jaipur-headquartered bank had reported a net profit of ₹322 crore in Q2FY21, including ₹126 crore from the aforementioned sale.

Net interest income (difference between interest earned and interest expended) was up 34 per cent y-o-y to ₹753 crore (₹561 crore in the year-ago quarter).

Other income, including processing fee, profit/loss on sale of investments, income from dealing in priority sector lending certificates, declined about 27 per cent y-o-y to ₹191 crore (₹261 crore).

The bank said profit on sale of investment for the previous year includes profit earned on sale of equity shares (part stake) held in Aavas Financiers.

Write-back

AU SFB received a write-back of ₹170 crore in non-performing asset (NPA) provisions in the reporting quarter. It had made a provision of ₹16 crore in the year-ago quarter.

Gross NPA position improved to 3.2 per cent of gross advances as on September-end 2021 against 4.3 per cent as at June-end 2021. Similarly, net NPA reduced to 1.7 per cent from 2.3 per cent.

Sanjay Agarwal, MD & CEO, emphasised that if the one-time gain of ₹126 crore due to part stake sale in Aavas is excluded from the year-ago period net profit, then the bank has posted a 42 per cent increase in net profit in the reporting quarter.

He observed that as the economy is improving, the bank’s customers are coming back on the loan repayment track.

Assets under management were up 24 per cent to ₹38,011 crore. Deposits increased 45 per cent y-o-y to ₹38,011 crore.

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Central Bank of India reports 55% y-o-y rise in second quarter net profit

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Central Bank of India (CBoI) reported a 55 per cent year-on-year (yoy) rise in its second quarter net profit at ₹250 crore against ₹161 crore in the year ago period, buoyed by lower loan loss provisions, write-back in provisions for standard assets, among others.

The public sector bank’s net interest income (difference between interest earned and interest expended) was up about 6 per cent y-o-y to ₹2,495 crore (₹2,354 crore in the year ago period).

Total non-interest income, comprising fee-based income, treasury income and other receipts edged up 1.55 per cent y-o-y to ₹720 crore (₹709 crore).

Loan loss provisions declined 56 per cent y-o-y to ₹311 crore (₹707 crore). The bank received a write-back of ₹394 crore from provisions it made towards standard assets (against ₹33 crore provision it had made under this head). Income tax provision was also lower at ₹103 crore (₹193 crore).

Slippages

Fresh slippages were higher at ₹2,104 crore (₹1,281 crore in the first quarter). Reduction in non-performing assets (NPAs), including via upgradation, recovery (including sale to asset reconstruction company), regular write-off, stood at ₹2,781 crore (₹2,790 crore).

Gross NPAs improved to 15.52 per cent of gross advances as on September-end 2021 against 15.92 per cent as on June-end 2021. Net NPAs also improved to 4.51 per cent of net advances as against 5.09 per cent.

The bank seems to be closer to being brought out of the Reserve Bank of India’s prompt corrective action (PCA) framework as it is no longer in breach of any of the four risk thresholds (capital, asset quality, profitability and leverage), going by the numbers in the analyst presentation.

Total advances declined about 1 per cent y-o-y to ₹1,75,594 crore. The lender said it had done a technical write-off (two) of advances of ₹4,810 crore during quarter-ended March 2021. If this was not done, then figure of advances as on September-end 2021 would have been ₹1,80,404 crore, with y-o-y growth of 1.75 per cent.

Total deposits increased by 4 per cent y-o-y to ₹3,36,500 crore. The share of low-cost CASA deposits increased to 49.79 per cent of total deposits from 47.72 per cent in the year ago period.

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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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Bank of Maharashtra reports 103% jump in Q2 net

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Bank of Maharashtra reported a 103 per cent year-on-year (yoy) jump in second quarter net profit at ₹264 crore against ₹130 crore in the year-ago quarter on the back of robust growth in net interest income and non-interest income.

The Pune-headquartered public sector bank’s bottomline improved despite an increase in its operating expenses and rise in loan loss provisions.

Net interest income (difference between interest earned and interest expended) rose 34 per cent y-o-y in the reporting quarter to ₹1,500 crore (₹1,120 crore in the year-ago quarter).

Non-interest income, comprising fee-based income, treasury income and miscellaneous income, was up 23 per cent y-o-y at ₹493 crore (₹402 crore).

MD & CEO AS Rajeev said the net interest margin (net interest income/average interest earning assets) at 3.27 per cent in the reporting quarter (against 3.05 per cent in the first quarter) is the highest in the last four-five years.

Operating expenses were up about 22 per cent y-o-y at ₹932 crore (₹766 crore). This includes additional liability of ₹217.70 crore due to enhancement in family pension.

Loan loss provisions jumped to ₹583 crore, including towards increase in provisions on account of implementation of resolution plans under RBI’s “Resolution Framework for Covid-19 related stress” against a write-back of ₹4.55 crore in the year-ago quarter.

NPAs decline

Gross non-performing assets (GNPAs) declined by ₹618 crore (net) during the quarter to ₹6,403 crore.

Of the total ₹1,236 crore reduction in GNPAs during the quarter, ₹645 crore was on account of recovery and upgradation. Recovery in written-off accounts includes ₹258 crore from DHFL.

Gross addition in NPAs stood at ₹618 crore, including ₹553 crore on account of fresh slippages.

GNPAs declined to 5.56 per cent of gross advances as at September-end 2021 against 6.35 per cent as at June-end 2021.

Net NPAs position also improved to 1.73 per cent of net advances against 2.22 per cent.

The bank has ₹550 crore exposure to SREI group, and has made full provision towards this exposure. The Kolkata Bench of the National Company Law Tribunal has admitted the RBI’s petitions for insolvency resolution process against Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL).

Total deposits increased by 14.47 per cent y-o-y to ₹1,81,572 crore. Gross advances rose by 11.44 per cent y-o-y to ₹1,15,235 crore.

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