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Friday, January 30, 2015

Bank of Baroda Q3 profit declines 68% on higher provisions, one-time tax liability

Bank of Baroda has posted a sharp decline of 68 per cent in net profit at Rs. 334 crore, in the October-December quarter of FY15 due to hike in provisions for bad loans, higher expenses and decline in margins.

The public sector lender had reported a net profit of Rs. 1,048 crore in the year-ago quarter.

“Provisions and contingencies (excluding tax provisions) of the bank increased by a significant 65.7% (y-o-y) during Q3FY15 to Rs. 1,262 crore (Rs 762 crore in Q3FY14) due to lumpy provisions against some structural non-performing loans,” the bank said in a statement.

Moreover, operating expenses, which increased 14 per cent, also weighed on the profits.

Net interest income

Net interest income increased 7.5 per cent to Rs. 3,286 crore in the third quarter ended December 2014 compared with Rs. 3,057 crore in the same quarter last year. Other income was up 17 per cent at Rs. 1,090 crore against Rs. 932 crore.

“The bank’s domestic net interest margin (NIM) also eased to 2.92 per cent in the quarter from 3.02 per cent in Q2, FY15 due to a near stagnant growth in non-food credit of the banking industry,” the bank said.

Post results, at 2.10 pm local time, the shares of Bank of Baroda were trading down by 11 per cent at Rs. 193.40 per share on the Bombay Stock Exchange.

Gross, net NPAs

Gross non performing assets (NPA) ratio as a percentage of total loans increased to 3.85 per cent as on December end 2014 from 3.32 per cent a year ago.

Net NPA ratio also worsened to 2.11 per cent from 1.88 per cent. Both gross and net NPA figures reflect the continued stress in economic environment and the ongoing structural issues.

Cash recovery (from NPA plus from the written off accounts) during April-December FY15 stood at the improved level of Rs. 1,205 crore (Rs 832 crore in April-December FY14), while the upgraded assets amounted to a better level of Rs. 1,120 crore (Rs 633 crore).

Source : Thehindubusinessline
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Stable loan growth, treasury gains drive ICICI Bank net profit up 14% to Rs. 2,889 cr

ICICI Bank, the country’s biggest private sector lender, booked a 14 per cent rise in net profit at Rs. 2,889 crore for the third quarter ended December 2014 on the back of stable loan growth and treasury gains. The net profit was at Rs. 2,532 crore in the year-ago quarter.

However, the asset quality continued to remain under pressure with higher provisions and increase in bad loans during the period.

“Growth was driven by strong retail growth and operating parameters…Given the subdued corporate and economic conditions, we continued to see additions to NPAs (non-performing assets)…It could be still 2-3 quarters more before we see improvement in the asset quality,” said Chanda Kochhar, MD and CEO of ICICI Bank.

Provisions for bad loans

Provisions largely towards bad loans jumped 41 per cent to Rs. 980 crore during the quarter compared with Rs. 695 crore in the year-ago quarter.

Net interest income

Net interest income or the difference between interest earned and interest expended grew 13 per cent to Rs. 4,812 crore from Rs. 4,255 crore in Q3FY14.

Non-interest income increased by 10 per cent to Rs. 3,091 crore from Rs. 2,801 crore on the back of treasury gains of Rs. 447 crore, though fee income grew by a meagre 6 per cent “mainly due to subdued growth on the corporate side”.

Net interest margin improved to 3.46 per cent in Q3FY15 compared with 3.32 per cent in Q3FY14.

Total advances, deposits

Total advances increased 13 per cent year-on-year to Rs. 3.75 lakh crore as on December 31, 2014 from Rs. 3.33 lakh crore as on December 31, 2013 driven by 26 per cent growth in retail accounting for 41 per cent of the total loans. Corporate growth accounting for 29 per cent, was tepid at 4 per cent.

"Retail growth was largely from home and auto loans…While we continue to take a calibrated approach on corporate loans,'' Kochhar said.

Total deposits increased by 12 per cent year-on-year to Rs. 3.55 lakh crore.

Gross, net NPAs

Gross NPA ratio deteriorated to 3.4 per cent (Rs 13,083 crore) of total advances as on December end 2014 from 3.05 per cent (Rs 10,399 crore) as on December end 2013. Net NPAs also increased to 1.27 per cent from 0.94 per cent.

Consolidated profit after tax also increased 14 per cent to Rs. 3,265 crore in the third quarter this fiscal from Rs. 2,872 crore in the third quarter of FY14.

At day’s close, shares of ICICI Bank ended 5 per cent down at Rs. 361.15 per share on the Bombay Stock Exchange.

Source : Thehindubusinessline
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Andhra Bank Q3 net zooms to Rs. 202 cr

Andhra Bank’s net profit increased four-fold to Rs.202 crore in the third quarter ended December 2014 compared to Rs.46 crore in the year ago period.

The decrease in cost of funds and increase in yield on advances pushed up profit. “Alternative liability sources other than deposits have been accessed at cheaper rates,’’ CVR Rajendran, Chairman and Managing Director, Andhra Bank, told news persons at a press conference here on Friday.

Net interest income increased to Rs.1,259 crore (Rs.868 crore) while total business grew 11.3 per cent to Rs.2.61 lakh crore. Net interest margin improved to 3.43 per cent ( 2.89 per cent).

Gross non-performing assets (NPAs) and net NPAs stood at 5.99 per cent (5.55 per cent) and 3.70 per cent (3.65 per cent) respectively.The bank was adversely affected by the delay in the roll-out of agricultural loan waivers in Andhra Pradesh due to problems such as multiple accounts. There are about Rs.880 crore agriculture NPAs in the State.

Andhra Bank, which had raised Rs.500 crore by issuing tier-I perpetual bonds recently, will raise another Rs.500 crore from the market before the end of the quarter. It may also raise Rs.1,000-1,500-crore capital in the first quarter of the next financial year.

The bank plans to open 200 branches in the next two months to take the total to 2,500 by March-end.

On Friday, Andhra Bank’s scrip gained 1.11 per cent to end at Rs.91.15 on the BSE.

Source : Thehindubusinessline
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IDFC’s Q3 net down 16%

Soon-to-be-bank IDFC Ltd said that its third quarter net profit fell 16 per cent as finance costs and provisions rose sharply. The infrastructure finance company posted a net profit of Rs401 crore in the quarter ended December 31, 2014 against Rs475 crore in the year-ago period.

Source : Thehindubusinessline
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Higher treasury income boosts Vijaya Bank Q3 net

Revision of base rate and higher treasury income boosted Vijaya Bank’s profits to Rs.37.40 crore in the third quarter of the current fiscal against Rs.11.39 crore in the same period last year.

The bank’s total income increased 14.89 per cent to Rs.3,302.67 crore (Rs.2,874.60 crore). Kishore Kumar Sansi, Managing Director and CEO, told reporters that the bank’s treasury income touched Rs.158 crore (Rs.16 crore) and revision of base rate protected interest margins. The bank made Rs.328 crore provision for NPAs.

Gross NPA stood at Rs.2,311 crore (Rs.1,953 crore). The percentage of gross NPA ratio stood at 2.92 per cent compared with 2.67 last year. Net NPA was at Rs.1,476 crore (Rs.1,131 crore). The percentage of net NPA ratio stood at 1.89 per cent as against 66.08 per cent last year.

Net interest income increased 7.19 per cent to Rs.1,668.98 crore from Rs.1,557.04 crore and net interest margin (NIM) was at 1.88 per cent (1.90 per cent).

Total deposits of the bank grew 8.12 per cent to Rs.2,03,187 crore (Rs.187,935 crore). Gross advances increased 8.26 per cent to Rs.79,136 crore (Rs.73,100 crore).

Source : Thehindubusinessline
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