Page 2 - Asset Quality Review
Poonawalla Fincorp reports 77% jump in net income at Rs 230 cr for Sept qtr
Poonawalla Fincorp on Friday reported a 77 per cent on-year jump in net income at Rs 230 crore for the September quarter driven by record loan sales and an improvement in asset quality. The Cyrus Poonawalla group company said this is the highest ever quarterly profit, which came on the back of the highest-ever quarterly disbursement that jumped 151 per cent to Rs 7,807 crore, taking the overall loan book to Rs 20,215 crore, which recorded a 54 per cent on-year growth. The record profit is driven by record loan sales and improvement in asset quality. Net bad loans declined to 0.72 per cent and there was a 106 bps rise in the key net interest margin to 11.42 per cent, the managing director Abhay Bhutada said in a statement. The gross Non-Performing Assets (NPAs) declined by 41 bps to 1.36 per cent, net NPAs improved by 22 bps to 0.72 per cent, the company said. The net interest margin jumped to 11.42 per cent, gaining 106 bps over the trailing 12 months period, leading to better ...
 "Poonawalla Fincorp reports 77% jump in net income at Rs 230 cr for Sept qtr")
Indian Bank Q4 net profit up 48% to Rs 1,520 crore as NII rises 29%
Board recommends dividend of Rs 8.60 per equity share, clears plan to raise equity capital
 "Indian Bank Q4 net profit up 48% to Rs 1,520 crore as NII rises 29%")
AU Small Finance tumbles 5% in 4 sessions; what should investors do?
Last week, reports claimed that the Reserve Bank of India has raised concerns about the rapid rise in advances at AU Small Finance Bank
 "AU Small Finance tumbles 5% in 4 sessions; what should investors do?")
Asset quality of Indian banks will be stable in 2023, says Moody's
The asset quality of Indian banks and those in Southeast Asian countries will be stable in 2023, said Moody's Investors Service in its latest report on the banking sector in emerging markets
 "Asset quality of Indian banks will be stable in 2023, says Moody's")
Excess credit growth to limit Indian banks' loss-absorbing ability: Fitch
Rating agency warns capital base of PSBs may come under greater strain
 "Excess credit growth to limit Indian banks' loss-absorbing ability: Fitch")
Five-Star Business up 3.4% on debut as Rs 684 cr worth of shares are traded
Listing day gains come despite lukewarm response to IPO
 "Five-Star Business up 3.4% on debut as Rs 684 cr worth of shares are traded")
PSBs' Q2 net profits zoom 50% YoY on steady rise in interest income
Strong loan growth, rising lending rates give the boost
 "PSBs' Q2 net profits zoom 50% YoY on steady rise in interest income")
BOI Q2 net down 8.65% YoY on rise in provisions for standard assets
Earnings, asset quality profile improve for public sector lender
 "BOI Q2 net down 8.65% YoY on rise in provisions for standard assets")
PNB Q2 net profit slips 63% to Rs 411.3 crore as NPA provisions rise
PNB's total income during July-September 2022 was Rs 23,001.3 crore as against Rs 21,262.3 crore a year ago
 "PNB Q2 net profit slips 63% to Rs 411.3 crore as NPA provisions rise")
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.
 "PNB Housing Finance's Q2 net profit rises 12% on improving margins")
SBI Card Q2 net profit jumps 52% to Rs 526 crore on low provisions
Impairment losses and bad debts declined 8 per cent YoY to Rs 546 crore but was up 21 per cent sequentially.
 "SBI Card Q2 net profit jumps 52% to Rs 526 crore on low provisions")
Bank does not foresee asset quality challenges, rumours baseless: RBL Bank
The bank's gross non-performing assets (NPAs) and net NPAs were 4.4% and 1.3%, respectively, at the end of the March quarter, with a provision coverage ratio of 70.4%
 "Bank does not foresee asset quality challenges, rumours baseless: RBL Bank")
Rising Covid cases may add to asset quality risks of NBFIs: Fitch
Fitch Ratings on Friday said the rising COVID cases may delay recovery in MSME and microfinance lending, and add to asset quality risks of non-banking financial institutions.
 "Rising Covid cases may add to asset quality risks of NBFIs: Fitch")
Banks likely to post 36.3% rise in Q3 net profit at Rs 38,153 crore
The bad loans saw a dip in Q2, both in absolute and percentage terms. The trend is likely to prevail in Q3
 "Banks likely to post 36.3% rise in Q3 net profit at Rs 38,153 crore")
Banks see uptick in credit growth; asset quality likely to improve
"An increase in bond yields would impact treasury performance," Motilal Oswal Securities said.
 "Banks see uptick in credit growth; asset quality likely to improve")
Asset quality set to worsen, but banks resilient enough: RBI report
The GNPA ratio of PSBs, which was 8.8 per cent in September this year, may deteriorate to 10.5 per cent by September 2022 under the baseline scenario
 "Asset quality set to worsen, but banks resilient enough: RBI report")
Asset quality of NBFCs worsens in H1 amid Covid-19 pandemic: RBI report
The pandemic posed significant challenges to NBFCs during the first wave (2020) also
 "Asset quality of NBFCs worsens in H1 amid Covid-19 pandemic: RBI report")
Dramatic improvement in asset quality post June: Amitabh Chaudhry
'The RBI has started normalising its extraordinary injection of liquidity in a calibrated manner', said Chaudhry
 "Dramatic improvement in asset quality post June: Amitabh Chaudhry")
Small ticket personal loans delinquencies shoot up in FY21, NBFCs most hit
Small ticket personal loans segment has witnessed a huge surge in asset quality stress for lenders in the pandemic-affected FY21, with NBFCs taking the maximum brunt
 "Small ticket personal loans delinquencies shoot up in FY21, NBFCs most hit")
Retail and MSMEs likely to see rise in slippages, say bankers
The current level of NPAs masks the actual pain due to restructuring done under regulatory packages, both in 2020 and this year
 "Retail and MSMEs likely to see rise in slippages, say bankers")