Page 3 - Bad Loans

12 PSBs report 50% jump in combined Q2 net profit at Rs 25,685 crore: FM

Finance Minister Nirmala Sitharaman on Monday said the government's efforts to reduce bad loans are yielding result with 12 public sector banks reporting a 50 per cent jump in combined net profit at Rs 25,685 crore in the second quarter ended September. In the first half of FY23, the cumulative net profit of all public sector banks (PSBs) increased by 32 per cent to Rs 40,991 crore. During the second quarter, the SBI reported the highest-ever profit of Rs 13,265 crore. On year-on-year basis, this was 74 per cent higher than the same quarter a year ago. "The continuous efforts of our govt for reducing the NPAs and further strengthening the health of PSBs are now showing tangible results. All 12 PSBs declared net profit of Rs 25,685 cr in Q2FY23 & total Rs 40,991 cr in H1FY23, up by 50% & 31.6%, respectively (y-o-y)," Sitharaman said in a tweet. She further said Canara Bank reports an 89 per cent jump in profit to Rs 2,525 crore as compared to second quarter of the previous ...

SBI's Q2 net rises 74% to Rs 13,265 crore on improved interest margins

The lender's net interest income improved 12.83 per cent YoY to Rs 35,183 crore for Q2FY23, against Rs 31,184 crore last year

DCB Bank Q2 profit jumps 73% to Rs 112 crore on reduction in bad loans

Private sector DCB Bank on Saturday posted a 73 per cent jump in net profit at Rs 112 crore for the quarter ended September 2022 on the back of reduction in bad loans. The bank had reported a profit of Rs 63 crore in the year-ago period. Total income of the lender during the July-September quarter of FY23 rose to Rs 510 crore against Rs 421 crore in the corresponding period of FY22, DCB Bank said in a statement. Net interest income increased to Rs 411 crore as against Rs 323 crore in the same period of the previous fiscal. The bank's gross non-performing assets (NPAs) declined to 3.89 per cent of the gross advances at the end of September 2022, from 4.73 per cent at September-end 2021. Net NPAs also came down to 1.54 per cent from 2.66 per cent. The Provision Coverage Ratio (PCR) as on September 30, 2022 was at 72.83 per cent. PCR without considering gold loan NPAs stood at 74.21 per cent, it said. Capital adequacy continues to be strong, it added. As on September 30, 2022, the

PNB to transfer bad loans worth Rs 20,008 cr from 62 accounts to NARCL

NARCL has been set up by commercial banks to aggregate and consolidate stressed assets for their subsequent resolution

PNB Q2 net profit falls 63% to Rs 411 crore on higher provisions

State-owned Punjab National Bank (PNB) on Tuesday reported a 63 per cent decline in standalone net profit to Rs 411 crore for the September quarter on account of higher provisioning for bad loans. The bank had posted a net profit of Rs 1,105 crore in the year-ago period. Total income in the second quarter of the current fiscal increased to Rs 23,001.26 crore as against Rs 21,262.32 in the July-September period a year ago, PNB said in a regulatory filing. The lender's interest income also rose to Rs 20,154 crore from Rs 17,980 crore in the same quarter a year ago. The gross Non Performing Assets (NPAs) declined to 10.48 per cent of the gross advances from 13.36 per cent earlier. In absolute terms, the gross NPAs or bad loans stood at Rs 87,034.79 crore at the end of the second quarter of FY23, compared to Rs 1,00,290.85 crore a year earlier. The net NPA too declined to 3.80 per cent as against 5.49 per cent. However, provisions for bad loans increased to Rs 3,555.98 crore in the

Jaypee Infra insolvency: Decks cleared for NARCL to buy first stress asset

Jaypee Infratech deal expected to close by early Nov

Centre unlikely to infuse any capital into the PSBs in FY23: Report

Between FY16 and FY21, the government infused Rs 3.3 trillion into PSBs helping the banks in improving their balance sheets and the capital-to-risk-weighted assets ratio (CRAR)

South Indian Bank posts profit in Q2 at Rs 223 cr; asset quality improves

South Indian Bank (SIB) on Thursday reported a net profit of Rs 223.10 crore for the quarter ended September 2022 as provisions for bad loans came down significantly. The lender had posted a net loss of Rs 187.06 crore in the same quarter a year ago. Total income during July-September 2022-23 was up 10.6 per cent at Rs 1,995.24 crore as against Rs 1,803.76 crore in the same quarter a year ago, SIB said in a regulatory filing. The interest income grew to Rs 1,740.14 crore from Rs 1,646.59 crore. Asset quality of the lender improved as gross non-performing assets (NPAs) fell to 5.67 per cent of gross advances as of end-September 2022 from 6.65 per cent by end of September 2021. In value terms, gross NPAs stood at Rs 3,856.13 crore as against Rs 3,879.60 crore. Net NPAs (bad loans) were trimmed to 2.51 per cent (Rs 1,647.13 crore) as against 3.85 per cent (Rs 2,178.49 crore). Provisions for bad loans and contingencies fell down by more than 57 per cent to Rs 179.29 crore during th

Indian banks may see bad loans falling to decade low of 4% by end of FY24

Indian banks are likely to see a 90 basis points fall in gross non-performing assets (NPAs) to 5% in this fiscal year to March and further improve to 4% by end of March 2024, rating agency Crisil said

YES Bank to sell all its NPAs to JC Flowers ARC by December: Report

YES Bank's gross NPAs stood at 13.4 per cent at the end of June. The gross figures stood at Rs 27,747 crore. In June 2021, the NPAs stood at 15.6 per cent

Bad loan recovery process can get worse

Apart from creating a distinction between financial creditors and operational creditors, the latest Supreme Court judgment also leads to the creation of a new category of default - temporary default

RBI unlikely to accept NBFCs' requests for bad-loan exemptions: Report

Under the new norms, shadow banks will have to recognise bad loans on a daily basis, rather than monthly, as some now do

SBI to sell Anamika Conductors' bad loan account to recover Rs 102 cr

Country's largest lender SBI will sell non-performing loan account of Anamika Conductors through e-bidding in late September to recover dues of Rs 102 crore. Anamika Conductors has an outstanding of Rs 102.30 crore. SBI has put the reserve price for the e-auction, scheduled to be held on September 28, 2022, at Rs 22.13 crore. SBI said in terms of its policy on transfer of stressed loan exposures, it is placing the loan account of Anamika Conductors for transfer to eligible ARCs/banks/NBFC/FIs. The bank, however, said it reserves the right not to go ahead with the proposed transaction or modify any terms and conditions at any stage, without assigning any reason. Founded in 1988, Anamika Conductors is a Jaipur-based company engaged in manufacturing of aluminium conductor wire, aluminium alloy conductors and power cables. It also has presence in wind energy production with mills situated in Rajasthan and Maharashtra.

China's biggest banks hit by margin squeeze amid bad loan pressure

China's $52 trillion banking industry is facing an increasingly difficult year, with its largest lenders cutting loan rates while bad debt is piling up amid a property crisis

IDBI Bank's CEO says the lender can recover $2.4 billion in bad loans

India is considering selling at least 51% of the $5 billion bank, people familiar with the matter have said

NARCL to buy loans of five distressed companies, lenders agreement awaited

In July, NARCL had proposed to take distressed assets of 17 firms worth Rs 93,249 crore including included five firms of the Future Group

Banks took a haircut of 69 per cent while resolving IBC cases: Report

Haircuts are defined as the losses incurred by the creditors (banks in this case) on resolving the bad debts or stressed assets

ESAF Small Finance Bank Q1 profit jumps to Rs 106 cr amid fall in bad loans

ESAF Small Finance Bank on Friday said it posted a profit of Rs 106 crore for the first quarter ended June helped by a rise in interest income and a decline in bad loans

PFC Q1 profit up marginally at Rs 4,580 cr; income falls 2% to Rs 18,544 cr

The board in its meeting held on Friday approved an interim dividend of Rs 2.25 per equity share of face value of Rs 10 each for 2022-23.

Lower bad loans push PSU banks' profitability in June quarter: Analysis

Cumulatively, all the 12 public sector banks reported a profit of about Rs 15,306 crore in the three months ended June, registering an annual growth of 9.2 per cent.