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Tag: Gross NPA

  • Uco Bank Q2 net down 20.38% at ₹401.67-cr

    Uco Bank Q2 net down 20.38% at ₹401.67-cr

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    Kolkata

    Public sector lender Uco Bank on Friday reported a 20.38 per cent year-on-year decline in its net profit at ₹401.67 crore for the second quarter this fiscal as its operating profit fell more than 17% y-o-y during the period.

    The Kolkata-headquartered lender’s net profit for the second quarter last fiscal stood at ₹504.52 crore. On a quarter-on-quarter basis, net profit rose 79% during Q2FY24 from ₹223.48 crore in Q1FY24, according to a stock exchange filing.

    The bank’s operating profit for the quarter under review declined 17.47% y-o-y at ₹981.88 crore as its non-interest income fell 17.07% y-o-y due to lower treasury income.

    “Treasury income came down to ₹ 57 crore in this quarter from ₹163 crore in Q2FY23 as there was mark-to-market loss due to increase in yield,” Uco Bank Managing Director and Chief Executive Office Ashwani Kumar said at a media conference.

    SLR holdings

    The MD and CEO said that the bank currently has an excess SLR holding of around ₹23,400 crore, and utilising a part of it to support credit growth is a favoured route instead of aggressively pricing deposits.

    Gross advances grew 17.99% y-o-y to ₹16,7734 crore as on September 30, 2023, while total deposits were up by 6.07% y-o-y to ₹24,9411 crore as on September 30.
    During the second quarter this fiscal net interest income (NII) rose 8.3% y-o-y at ₹ 1916.55 crore as against ₹1769.6 crore for the year-ago period. Domestic net interest margin (NIM) improved 8 basis points y-o-y at 3.05% from 2.97% during Q2FY23

    Better domestic NIM

    Domestic NIM for the half year ended September 30, 2023 stood at 3.12% as against 2.91% for the corresponding period ended 30, 2022, registering an improvement of 21 bps.

    The lender’s bad loan provision for the quarter fell around 16% y-o-y at ₹ 335.81 crore during Q2FY24 from ₹400.27 crore during Q2FY23, as its asset quality improved. Gross NPA ratio during the quarter fell 244 bps y-o-y to 4.14% from 6.58% in the year-ago period.

    Kumar said the bank is expecting around ₹400 crore recovery from two accounts, which are currently under the corporate insolvency resolution process.

    Meanwhile, the bank has withdrawn a circular which had earlier asked branch officials to distribute sweets to top ten NPA accounts holders. “The intent behind that was to meet and greet. Distribution of sweets was not the intent. When I got to know of it, we took the decision (to withdraw the circular),” Kumar added.

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  • Karnataka Bank reports 171% growth in Q4 net profit, recommends dividend of ₹5 per share

    Karnataka Bank reports 171% growth in Q4 net profit, recommends dividend of ₹5 per share

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    Karnataka Bank registered a net profit of ₹353.53 crore in the fourth quarter of 2022-23 as against a net profit of ₹130.20 crore in the corresponding period of the previous fiscal, recording a growth of 171.53 per cent.

    The bank registered a net profit of ₹1,179.68 crore for 2022-23 against ₹507.99 crore in 2021-22, recording a growth of 132.22 per cent.

    The board of directors, which met on Friday, approved the audited annual financial results for the period ended March 31. It also recommended a dividend of ₹5 per equity share (that is 50 per cent) out of the net profits for the year ended March 31, subject to the approval of the shareholders at the Annual General Meeting of the bank.

    During the fourth quarter of 2022-23, the net interest income of the bank stood at ₹860.07 crore (₹656.50 crore in Q4 of 2021-22), and other income stood at ₹395.23 crore (₹256.98 crore). The net interest margin of the bank stood at 3.87 per cent (3.25 per cent).

    The bank’s provision coverage ratio (PCR) increased to 80.76 per cent in 2022-23 from 73.47 per cent in 2021-22. The capital-to-risk-weighted assets ratio (CRAR) under Basel III reached 17.45 per cent, up from 15.66 per cent last year.

    The bank’s gross NPA (non-performing assets) reduced to 3.74 per cent during Q4 of 2022-23 from 3.90 per cent about a year back. The net NPA of the bank stood at 1.70 per cent during the fourth quarter of 2022-23 against 2.42 per cent in the corresponding period of the previous fiscal.

    The bank’s business turnover stood at ₹1,47,319.53 crore during 2022-23, with a year-on-year growth of 7.40 per cent. Deposits grew 8.68 per cent year-on-year to ₹87,367.91 crore, while advances increased 5.58 per cent year-on-year to ₹59,951.62 crore. CASA (current account savings account) deposits accounted for 32.97 per cent of total deposits.

    Quoting Sekhar Rao, Managing Director and Chief Executive Officer (interim) of Karnataka Bank, a media statement said: “As we proudly mark a century of unwavering trust, our performance for FY23 is demonstrated through robust turnover and milestone bottomline numbers, underpinned by consistent enhancements in overall asset quality.”

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  • City Union Bank posts ₹218-crore net in Q3

    City Union Bank posts ₹218-crore net in Q3

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    City Union Bank has reported an 11 per cent increase in its net profit at ₹218-crore for the quarter ended December 31, 2022, when compared with ₹196 crore in the year-ago period on the back of a strong rise in operating profit.

    Its operating profit grew 35 per cent at ₹497 crore when compared with ₹370 crore in Q3 of the previous fiscal, according to a statement.

    Interest income grew 16 per cent at ₹1,206 crore as against ₹1,035 crore, while non-interest income reported an increase of 40 per cent at ₹224 crore (₹160 crore). Net interest income was higher by 13 per cent at ₹556 crore (₹490 crore).

    Net interest margin (NIM) stood at 3.9 per cent in Q3 of this fiscal as against 4 per cent a year ago.

    Total provisions were higher at ₹280 crore during December 2022 quarter when compared with ₹174 crore in the year-ago quarter.

    Gross NPA reduced to 4.62 per cent as of December 2022 quarter when compared with 5.21 per cent in the year-ago quarter and 4.32 per cent in the preceding quarter. Net NPA also dropped to 2.67 per cent from 3.44 per cent in the year-ago quarter and 2.69 per cent from Q2 of this fiscal.

    For the 9 months ended December 31, 2022, the company reported a net profit of ₹719 crore when compared with ₹551 crore in the year-ago period, an increase of 31 per cent.

    Deposits of the bank increased by 7 per cent to ₹49,997 crore when compared with ₹46,722 crore, while advances grew 12 per cent to ₹43,009 (₹38,387 crore).

    As of December 31, 2022, The Bank’s capital adequacy, as per Reserve Bank of India (RBI) guidelines on Basel III norms, was 20.47 per cent and Tier-1 capital adequacy was 19.39 per cent, well above regulatory requirements, it said.

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    BL Chennai Bureau

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