Page 2 - Bad Loans

Karur Vysya Bank Q1 results: Net profit rises 57% to Rs 359 crore

Private sector lender Karur Vysya Bank on Monday reported 57 per cent rise in net profit at Rs 359 crore for June quarter due to decline in bad loans and increase in interest income. The Tamil Nadu-based lender had posted a net profit of Rs 235 crore in the year-ago period. Total income during the quarter under review increased to Rs 2,216 crore from Rs 1,673 crore in FY23, Karur Vysya Bank said in a regulatory filing. Interest earned by the bank grew to Rs 1,883 crore over Rs 1,474 crore in June quarter a year ago. The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 1.99 per cent of gross advances by the end of June 2023, from 5.28 per cent as of June 2022. Similarly, net NPAs or bad loans eased to 0.59 per cent as against 1.93 per cent a year ago. However, Capital Adequacy Ratio of the bank declined 17.67 per cent from 18.98 per cent in the same quarter of FY23.

Central Bank Q1 profit surges 78% to Rs 418 cr due to decline in bad loans

State-owned Central Bank of India on Monday reported a 78 per cent rise in net profit at Rs 418 crore for the June quarter due to decline in bad loans and increase in interest income. The Mumbai-based lender had posted a net profit of Rs 235 crore in the year-ago period. Total income during the quarter under review increased to Rs 8,184 crore from Rs 6,357 crore in FY23, Central Bank of India said in a regulatory filing. Interest earned by the bank grew to Rs 7,225 crore over Rs 5,527 crore in the June quarter a year ago. Net Interest Income of the bank increased by 48 per cent to Rs 3,176 crore in Q1 FY24, it said. The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 4.95 per cent of gross advances by the end of June 2023, from 14.90 per cent as of June 2022. Similarly, net NPAs or bad loans eased to 1.75 per cent as against 3.93 per cent a year ago. Net Interest Margin (NIM) of the bank improved to 3.62 per cent, registering a growth of

PSBs stepping up recovery of bad loans to meet FinMin's 40% target: Report

In the five years that ended on March 31, 2022, the PSBs were able to recover only 14 per cent, Rs 1.03 trillion, out of the total written-off loans of Rs 7.34 trillion

Federal Bank Q1 profit up 29% at Rs 854 cr on back of decline in bad loans

Federal Bank on Thursday reported 29 per cent rise in net profit at Rs 854 crore for June quarter 2023-24 helped by decline in bad loans. The South-based private sector lender had posted a net profit of Rs 661 crore for the year-ago period. Total income during the quarter under review increased to Rs 5,757 crore from Rs 4,081 crore in the year-ago period, Federal Bank said in a regulatory filing. Interest earned by the bank increased to Rs 5,025 crore from Rs 3,629 crore in the same period a year ago. The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 2.38 per cent of gross advances by the end of June 2023, from 2.69 per cent as of June 2022. Net NPAs or bad loans too came down to 0.69 per cent as against 0.94 per cent a year ago. However, Capital Adequacy Ratio of the bank decreased to 14.28 per cent from 14.57 per cent in the same quarter a year ago.

Private banks more aggressive in writing off bad loans than public banks

The ratio of write-offs to gross non-performing assets (GNPAs) in private banks was 47.9 per cent, much higher than 22.2 per cent in public banks

One in every 10 retail borrowers missing monthly payments: RBI report

According to RBI's financial stability report, the total of SMA-0, SMA-1 and SMA-2 in the retail advances in the public sector banks was 9.4% as of March 31

L&T Finance to sell bad loans worth Rs 3,022 crore to AMCs: Report

L&T Finance is making this step as part of its efforts to reduce its wholesale finance book, which comprises both infrastructure and real estate loans

Bad loan firms call for rule change to open up sector to new players

The proposed changes would increase the types of entities who trade instruments called Security Receipts, which are backed by non-performing loans

Ireda posts all-time high net profit of Rs 865 cr in 2022-23 fiscal

State-owned Indian Renewable Energy Development Agency (IREDA) on Tuesday posted an all-time high net profit or profit after tax at Rs 865 crore in 2022-23 fiscal year on lower bad loans at 1.66 per cent. IREDA, a renewable energy funding company, has reported an all-time high annual Profit After Tax (PAT) of Rs 865 crore and Profit Before Tax (PBT) of Rs 1,139 crore in the financial year 2022-23, a company statement said. The figures represent a significant growth of 36 per cent and 37 per cent, respectively, over the preceding financial year 2021-22. IREDA's Net Non-Performing Assets (NPAs) or bad loans have reduced to 1.66 per cent in FY23 from 3.12 per cent in FY22, a significant reduction of 47 per cent (in percentage terms) on year on year basis. The Board of Directors of IREDA approved the audited financial results for the financial year 2022-23 in a meeting held on Tuesday while lauding the company's outstanding performance and continued growth. The loan book of IREDA has

Adani faced margin call on $1.1 bn loan before repaying in full: Report

According to the report, the repayment was meant to avoid any further damage to investor confidence

UCO Bank Q3 profit more than doubles to Rs 653 cr on decline in bad loans

UCO Bank on Tuesday reported more than two-fold jump in profit at Rs 653 crore for the quarter ended December 2022, driven by increase in interest income and decline in bad loans. Its net profit stood at Rs 310 crore in the same quarter of the preceding financial year. Total income increased to Rs 5,451 crore in the quarter from Rs 4,638 crore in the year-ago period, the bank said in a regulatory filing. At the same time, interest income rose to Rs 4,627 crore as compared to Rs 3,919 crore in the same quarter a year ago. On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 5.63 per cent of gross advances as compared to 8 per cent at the end of the third quarter of 2021-22. Net NPAs too eased to 1.66 per cent from 2.81 per cent in the same quarter a year ago. As a result, provision for bad loans declined significantly to Rs 220 crore from Rs 565 crore in the same period a year ago. However, the capital adequacy ratio de

Karur Vysya Bank Q3 profit surges 56% to Rs 289 cr on decline in bad loans

Karur Vysya Bank on Monday reported a 56 per cent jump in profit at Rs 289 crore for the quarter ended December 2022, helped by a rise in interest income and decline in bad loans. Its net profit stood at Rs 185 crore in the same quarter of the preceding financial year. Total income increased to Rs 2,013 crore in the quarter from Rs 1,600 crore in the year-ago period, the old generation private sector bank said in a regulatory filing. At the same time, interest income rose to Rs 1,695 crore as against Rs 1,405 crore in the same quarter a year ago. On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 2.66 per cent as compared to 6.97 per cent at the end of the third quarter of 2021-22. Net NPAs too eased to 0.89 per cent from 2.55 per cent. Despite a decline in bad loans, provision and contingencies increased more than two-fold to Rs 364 crore as against Rs 146 crore in the same period a year ago. The capital adequacy ra

War for deposits will intensify

For most banks, the liability part of the balance sheet has been on autopilot, and the strategies have evolved around credit growth and recovery of bad loans. Now the story has to change

Urban Co-op Bank profiles improve on bad loan dip, better profitability

However, growth in deposits and advances took a knock as liabilities shrank on the back of high base in 2020-21, shows RBI Report on Trend and Progress of Banking in India

Yes Bank completes transfer of $5.81 bn worth bad loans to JC Flowers

Yes Bank's gross bad loan ratio edged down to 12.89% at the end of the Sept quarter from 13.45% at the end of June

Bad loans worth Rs 10 trillion written off in last 5 years by banks: Govt

These bad loans have been written off by scheduled commercial banks in last five fiscals (2017-22), the govt told parliament

Bad loans & IBC: Going as expected

Indeed, the IBC has only proven how wide and deep corrupt banking practices in PSBs were

Punjab & Sind Bank eyes Rs 1,100 crore profit amid bad loans resolution

State-owned Punjab & Sind Bank expects to clock a net profit of around Rs 1,100 crore in the current financial year on the back of resolution of bad loans. The bank has given a NPA recovery guidance of Rs 2,000 crore for the ongoing fiscal, Punjab & Sind Bank Managing Director Swarup Kumar Saha told PTI in an interaction. Out of this, Rs 700 crore has already been realised, he said, adding some big resolutions like Sintex Industries and Meenakshi Energy are going to happen in the coming quarter. Besides, he said, resolution of some IL&FS group accounts is expected during the current fiscal. Helped by strong recoveries, he said, "we are looking at profitability of Rs 1,100-1,200 crore in FY'23." During the first half of the fiscal, the bank earned a profit of Rs 483 crore as against Rs 392 crore in the same period a year ago. The bank had gone through rough patches but it was able to make a historic turnaround and recorded an annual profit of Rs 1,039 crore in FY22 -- the ..

JM Financial Q2 net income rises slightly to Rs 180 cr; bad loans spike

JM Financial on Monday reported a marginal 3.20 per cent increase in its net income on a consolidated basis in the September quarter at Rs 180 crore as the company saw its revenue falling and bad loans rising. Total income fell 9.53 per cent to Rs 877.13 crore in the reporting quarter from Rs 969.49 crore in the year-ago period, the company said in a statement. JM Financial's loan book rose to Rs 14,670 crore from Rs 11,072 crore, but the asset quality worsened with gross NPAs climbing to 3.85 per cent from 2.32 per cent in September 2021 and from 3.52 per cent in June 2022. Net NPAs nearly doubled to 2.44 per cent from 1.38 per cent year on year and from 2.31 per cent sequentially. The company said 0.37 per cent of assets are still under the Covid protection cover, down from 0.87 per cent on-year and 0.45 per cent on-quarter. Of the total loan book, the wholesale mortgage stood at Rs 7,321 crore, up 11.3 per cent, and retail mortgage jumped 62.8 per cent to Rs 1,392 crore. Visha

Dhanlaxmi Bank Q2 profit jumps to Rs 16 cr on lower bad loan provisions

Dhanlaxmi Bank on Wednesday reported a multi-fold rise in net profit at Rs 15.89 crore for September quarter 2022-23 on lower provisions for bad loans. The bank had clocked a net profit of Rs 3.66 crore in the year-ago period. In the previous June quarter, the bank incurred a net loss of Rs 26.43 crore. Total income increased to Rs 285.26 crore in September quarter from Rs 266.79 crore earlier, Dhanlaxmi Bank said in a regulatory filing. Interest income rose to Rs 262.50 crore from Rs 229.01 crore. Operating profit was up 35 per cent at Rs 35.35 crore. Gross non-performing assets (NPAs) of the bank were 6.04 per cent of gross advances at the end of September 2022 as against 8.67 per cent by the year-ago period. Net NPAs or bad loans were trimmed to 2.32 per cent from 4.92 per cent. Thus, provisions for bad loans and contingencies fell to Rs 19.46 crore for the quarter, as against Rs 22.60 crore set aside for the year-ago period. Dhanlaxmi Bank said it has recovered Rs 3.32 crore