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Bank of Maharashtra Q4 net profit more than doubles to Rs 840 crore

Bank has announced a dividend of Rs 1.3 per share with a face value of Rs 10

Poonawalla Fincorp registers highest disbursement of Rs 6,370 cr in Q4 FY23

Adar Poonawalla-controlled non-banking finance company Poonawalla Fincorp on Wednesday said its total disbursement grew 151 per cent year-on-year to record Rs 6,370 crore in the March 2023 quarter. Its assets under management (AUM) increased by 37 per cent year-on-year and 16 per cent quarter-on-quarter to about Rs 16,120 crore at March-end 2023, despite a sharp reduction in the discontinued loan book, the company said in a regulatory filing. Discontinued onbook reduced to approximately Rs 625 crore at March-end 2023. "Total disbursements during Q4 FY23 were highest ever at approximately Rs 6,370 crore, up 151 per cent Y-o-Y and 89 per cent Q-o-Q compared to disbursements of Rs 2,539 crore in Q4FY22 and Rs 3,369 crore in Q3FY23," it said. Gross NPA and net NPA are expected to improve further to less than 1.55 per cent and 0.85 per cent, respectively, at the end of the last fiscal. The company said it would strive to maintain the NNPA below 1 per cent in line with its Management Vi

Bank NPAs to improve to decadal low of 3.8% by FY24-end, says Crisil

Banks' gross non-performing assets (NPAs) will reduce further to a decadal low of 3.8 per cent by end of FY2023-24, credit rating agency Crisil said on Monday. The agency estimates NPAs to reduce to 4.2 per cent by end of the just concluded FY23 as against 5.9 per cent in the year-ago period. It had earlier estimated NPAs to come at 4 per cent by end of FY24. Crisil said a major factor influencing the bank NPAs is the improvement in the high-value corporate loanbooks, where the gross NPAs are slated to come below 2 per cent. Corporates have been reducing their leverage through a string of measures, including prepayment of loans as well. Additionally, strengthened risk management and underwriting is also helping the lenders towards lowering the NPAs, the agency said. When asked about the growing trend of writing unsecured loans in the retail segment, the agency's deputy chief rating officer Krishnan Sitaraman said they occupy a very small proportion of the overall loans. He said 26

MSME loan delinquencies dip to 3% by September, shows CIBIL data

The highest drop was in the private bank segment, from 2.8 per cent in Q2FY22 to 1.5 per cent in FY23-Q2

Small business NPAs decline in Q2FY23 despite high credit growth: Report

The Non-performing assets (NPAs) from the small businesses segment have witnessed a decline in the September quarter of this fiscal despite high credit growth, a report said on Thursday. The micro, small and medium enterprises' (MSME) NPAs declined to 12.5 per cent as of September 2022, as against 13.9 per cent in September 2021, after the devastating second wave of the Covid-19 pandemic, the report by Transunion Cibil said. The overall disbursements, which excludes loan renewals, grew 24 per cent during the quarter, led by an over 54 per cent in the micro industries segment which have a credit exposure of up to Rs 1 crore, the credit information company said. The average loan size for the micro segment increased by 34 per cent, and to the small segment by 4 per cent, Cibil said, adding that the same was down 1 per cent in the case of businesses classified as medium primarily because of the emergency credit-linked guarantee scheme loans made during the pandemic. When it comes to ..

PSU banks' gross NPA declines from 14.6% in Mar 2018 to 5.53% in Dec 2022

The government has taken various reforms following which asset quality of public sector banks has improved significantly with gross NPA ratio declining from the peak of 14.6 per cent in March 2018 to 5.53 per cent in December 2022, Parliament was informed on Monday. All PSBs are in profit with aggregate profit being Rs 66,543 crore in 2021-22, and that further increased to Rs 70,167 crore in first nine months of current financial year, Minister of State for Finance Bhagwat K Karad said in a written reply to Lok Sabha. At the same time, resilience has increased with provision coverage ratio of PSBs rising from 46 per cent to 89.9 per cent in December 2022, he said, adding capital adequacy ratio of PSBs improved significantly from 11.5 per cent in March 2015 to 14.5 per cent in December 2022. Total market cap of PSBs (excluding IDBI Bank, which was categorised as private sector bank in January 2019) increased from Rs 4.52 lakh crore in March 2018 to Rs 10.63 lakh crore in December ..

Indian banks' gross NPAs may touch decadal low of sub-4% by FY24: Study

Bad loans of Indian banks are expected to decline 90 basis points to less than five per cent in FY23 and hit a decadal low of sub-four per cent by March 31, 2024, said an Assocham-Crisil Rating study unveiled on Thursday. The study attributed the decline in gross Non-Performing Assets (NPAs) to the post-Covid economic recovery and higher credit growth. It said the biggest improvement would be in the corporate loan segment, where gross NPAs are seen falling below two per cent in the next fiscal from a peak of about 16 per cent as on March 31, 2018. "This follows significant clean-up of books by banks in recent years, as well as strengthened risk management and underwriting, which has led to higher preference for borrowers with better credit profiles. The steady improvement in corporate asset quality is clearly manifested in key indicators such as the credit quality of bank exposures," Assocham Secretary General Deepak Sood said. He observed that the twin balance sheet problem has ..

Siva group companies look to settle dues with State Bank of India, others

Siva group offers Rs 81 cr to lenders

Removing barriers to entry

Policies should focus on improving the ease of entering business, not just the ease of doing business

Banks' net NPA ratio at 10-yr low, GNPAs continue downward journey: RBI

Stress test show banks capable of absorbing shocks without capital infusion

Nifty PSU Bank index m-cap crosses Rs 10 trillion in intra-day trade

The index hit an intra-day high of 4,145.45 before ending at 4,049, up 0.05%; m-cap at close was Rs 9.9 trillion

Will the dream run continue for banks?

As the war for deposits escalates, the cost of money will rise and banks' NIM will be under pressure. Also, a few banks may invite trouble by aggressively growing their retail books without necessary

PNB Housing Finance's Q2 net profit rises 12% on improving margins

Its net interest income (NII) expanded by 29 per cent YoY to Rs 649 crore in the reporting quarter.

Karur Vysya Bank net profit up 52% at Rs 250 cr in Q2, deposits grow

NPA declines to Rs 2,457 crore, compared to Rs 3,972 crore a year ago

RBI tightens disclosure norms on divergence in NPAs, provisions

Also makes them applicable to UCBs

MFI loans decline in June qtr; NPA situation improves, says report

The June quarter witnessed a marginal decline in the overall microlending outstanding on a sequential basis, but there was an improvement in the asset quality, a report said on Tuesday. There was a 0.2 per cent decline in the overall microfinance book to Rs 2.85 lakh crore during the three months to June when compared with the number as of March-end, the report by CRIF High Mark said. The micro loans were up 18 per cent when compared with the year-ago period, the report by the credit information company added. The April-June quarter last year, which saw the devastating second wave of the pandemic, had led to a massive impact on microlenders both from loan growth as well as delinquency perspective. The June quarter saw Rs 49,788 crore of loans being disbursed, which was 39.2 per cent lower than what was achieved by the industry in the preceding March quarter, but 88.9 per cent higher than the year-ago period, the report said. The value delinquency for loans overdue for over 90 days

Bandhan Bank stock weighed down by weak sentiment; worst may be priced in

The guidance is for overall 20 per cent growth in 2022-23

Yes Bank approves sale of Rs 48,000 cr stressed loans to JC Flowers ARC

Former RBI Deputy Governor R Gandhi appointed as Yes Bank's non-executive chairman

IDBI Bank re-appoints S Jebaraj as deputy MD for 3 years effective Sept 20

Jebaraj handles verticals for large and mid-sized corporates, trade finance and NPA management and he has been a member of internal committees for more than a decade, said IDBI Bank

Bank union opposes public sector banks' 'loan melas' on NPA pile-up fears

The Maharashtra State Bank Employees Federation (MSBEF) on Monday opposed 'loan melas' organised by state-owned banks, saying that credit granted without much diligence at such events lead to pile-up of non-performing assets. Such 'melas' add to the retail Non-Performing Assets (NPAs) for the lenders as the loans are granted without much diligence, MSBEF said in a statement. The statement comes on a day when Union minister of state for finance Bhagwat Karad is attending one such mela in Maharashtra's Aurangabad, where public sector lenders are targeting to distribute Rs 2,900 crore of loans. Stating that past experience suggests borrowers stop repayments for such loans, the MSBEF said, no political party helps in the loan recovery process. "The same political parties demand for waiver of those loans so as to appease voters" during elections, it said, adding that such events vitiate the recovery atmosphere. Public sector banks are put into crisis through NPAs, and the same is used