UCB executives said besides regulatory push for effective asset quality management, the upturn in credit growth and improvement in margins have helped enhance provision cover
Lenders set to meet minimum capital need even under severe stress
Capital SFB is not yet eligible to apply for a conversion to a universal bank because of net non-performing ratio
The private lender plans to raise funds by issuing debt securities and proposed a dividend of Rs 10 per share, subject to approval of the board
Private sector lender RBL Bank on Saturday reported a 30 per cent rise in the post-tax net profit for the March quarter at Rs 353 crore, driven by non-interest income. The Maharahstra-based lender had reported a net profit of Rs 271 crore in the year-ago period. Its core net interest income grew 18 per cent to Rs 1,600 crore on a 20 per cent loan growth. However, it was limited by a compression in the net interest margin to 5.45 per cent against 5.62 per cent a year ago. The other income grew 30 per cent to Rs 875 crore during the reporting quarter. Its managing director and chief executive R Subramaniakumar told reporters that he sees advances continuing to grow in the 20 per cent range going forward as well. The deposit growth came at 22 per cent even in the challenging market. On the asset quality front, overall slippages increased to 0.56 per cent of the assets from the year-ago period's 0.44 per cent and were driven by microlending and also unsecured loans. The gross ...
Experts said that the expectation of an increase in fresh slippage rate in FY25 is built on the premise of seasoning of recently originated credit portfolios
All public sector banks in India showed a reduction in non-performing asset levels over the last six months while only 67 per cent of private sector banks reported a decline during the period, said a FICCI-IBA Bankers' survey released on Thursday. The survey revealed that 77 per cent of the respondent banks reported a decrease in the NPA levels in the last six months, with public sector banks reporting better asset quality as compared to their private sector counterparts. The 18th round of the FICCI-IBA Bankers' survey was carried out for the period July to December 2023. A total of 23 banks, including public sector, private sector and foreign banks, participated in the survey. These banks together represent about 77 per cent of the banking industry, as classified by asset size. Over half of the banks covered in the FICCI-IBA Bankers' unveiled on Thursday believe that gross non-performing assets would be in the range of 3-3.5 per cent over the next six months. "All responding publi
The scrutiny marks a change for the central bank, which recently said India's credit expansion did not point to building systemic stress
Raising deposits to keep pace with loan growth and keeping credit cost low top the agenda for banks
Axis Bank Q3FY24 results: Axis Bank's gross NPAs fell to 1.58% in the quarter from 1.73% in the previous quarter
Federal Bank on Tuesday posted 25 per cent increase in profit at Rs 1,007 crore for the third quarter ended December 2023. The bank had earned a net profit of Rs 804 crore in the same quarter a year ago. Total income increased to Rs 6,593 crore during the quarter under review from Rs 4,967 crore in the same period last year, Federal Bank said in a regulatory filing. The private sector bank earned an interest income of Rs 5,730 crore during the quarter compared to Rs 4,433 crore in the same period a year ago. Gross Non-Performing Assets (NPAs) of the bank declined to 2.29 per cent of gross loans by the end of December 2023 from 2.43 per cent a year ago. Similarly, net NPAs or bad loans came down to 0.64 per cent from 0.73 per cent at the end of the third quarter of the previous fiscal.
State-owned Bank of Maharashtra (BoM) on Tuesday posted a 34 per cent rise in its profit at Rs 1,036 crore in the third quarter ended December 2023. The Pune-based lender had posted a net profit of Rs 775 crore in the same quarter a year ago. Total income increased to Rs 5,851 crore during the quarter under review against Rs 4,770 crore in the same period last year, BoM said in a regulatory filing. The bank earned an interest income of Rs 5,171 crore during the quarter compared to Rs 4,129 crore in the same period a year ago. The bank was able to reduce gross Non-Performing Assets (NPAs) to 2.04 per cent of the gross loans by the end of December 2023 from 2.94 per cent a year ago. Similarly, net NPAs or bad loans came down to 0.22 per cent from 0.47 per cent at the end of the third quarter of the previous fiscal.
The Reserve Bank on Tuesday proposed allowing banks having net non-performing assets (NPAs) ratio of less than 6 per cent to declare dividends. As per the prevailing norms last updated in 2005, banks need to have a NNPA ratio of up to 7 per cent to become eligible for declaration of dividends. "The net NPA ratio, for the financial year for which the dividend is proposed, shall be less than six per cent," the Reserve Bank said in the draft guidelines on dividend declaration. The guidelines have been reviewed in the light of implementation of Basel III standards, the revision of the prompt corrective action (PCA) framework, and the introduction of differentiated banks, the RBI said. The central bank has proposed that the new guidelines should come into effect from FY25 onwards. The draft lays down directions need to be followed by banks' boards while considering proposals of dividend payouts, which include consideration on divergence in classification and provisioning for NPAs as ..
Jai Balaji was on the RBI's second list of non-performing assets (NPAs) in 2017-18 mandated for resolution under the Insolvency and Bankruptcy Code
The gross NPA ratio of the bank is around 12 per cent, and the regulator aims to bring it down to 8 per cent through sustained recovery efforts
Every defaulter is not a wilful defaulter who has the capability of paying back and is yet not servicing the bank loan
Recoveries from written-off loans were good at Rs 1,230 crore, and trading gains were at Rs 300 crore, along with a revaluation of investments of Rs 180 crore
Uco Bank Q2 result: The bank's gross non-performing assets fell to 4.14 per cent in the July-September quarter as compared to 4.48 per cent in the previous quarter
IDFC First Bank on Saturday reported a 35 per cent rise in net profit at Rs 751 crore in the second quarter ended September driven by operating income. The lender had posted a net profit of Rs 556 crore in the year-ago period. Total income in the second quarter of the current fiscal rose to Rs 8,786 crore from Rs 6,531 crore in the same period a year ago, IDFC First Bank said in a regulatory filing. The net interest income (NII) of the bank improved by 32 per cent to Rs 3,950 crore against Rs 3,002 crore in September 2022. The net interest margin increased to 6.32 per cent at the end of September 2023 as against 5.83 per cent at the end of second quarter of previous year. The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 2.11 per cent of gross advances at the end of the September quarter from 3.18 per cent a year ago. Similarly, net NPAs or bad loans declined to 0.68 per cent as against 1.09 per cent in the year-ago period. Provision .
During the period under review, the bank's total income rose 19 per cent to Rs 6,941.5 crore compared to Rs 5,854 crore during the same quarter last fiscal