Page 2 - Npas

How long will the good run last?

In public, bankers exude confidence and say everything is hunky-dory, but the rising defaults in a few pockets don't exactly suggest this

FinMin to discuss RBI's draft project financing norms with banks, IBA

The official said banks will assess the impact of the draft rules on their balance sheets and can approach the RBI based on their assessment

IDBI Bank Q4 results: Net profit jumps 44% to Rs 1,628 cr, NII rises 12%

Private sector lender IDBI Bank on Saturday reported a 44 per cent jump in net profit at Rs 1,628 crore in the March quarter of financial year 2023-24. In comparison, the bank had posted a net profit of Rs 1,133 crore in the year-ago period. Total income rose to Rs 7,887 crore in the period under review, from Rs 7,014 crore in the January-March period of fiscal year 2022-23. For the 2023-24 fiscal, net profit grew 55 per cent to an all-time high of Rs 5,634 crore. In 2022-23, the profit was at Rs 3,645 crore. Total income for fiscal year 2023-24 was at Rs 30,037 crore, up from Rs 24,942 crore in financial year 2022-23. Net Interest Income improved by 12 per cent in the March quarter to Rs 3,688 crore, as against Rs 3,280 crore in the fourth quarter of 2022-23. Net non-performing assets (NPA) ratio improved to 0.34 per cent as on March 31, 2024, as against 0.92 per cent as on March 31, 2023. The board of IDBI Bank has proposed a dividend of 15 per cent subject to shareholders'

PNB Housing Finance Q4FY24 results: Net profit rises 57% to Rs 444 crore

Total income during the quarter rose to Rs 1,806 crore from Rs 1,628 crore in the same quarter of the previous fiscal, PNB Housing Finance said in a regulatory filing

Fresh NPAs of private, public banks to pick up in FY25, says ICRA

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

CEIB launches portal for antecedent verification of prospective borrowers

The Central Economic Intelligence Bureau (CEIB) on Friday launched a portal for antecedent verification of prospective borrowers and bad loans to streamline intelligence clearance process for banks for loan disbursement. The portal was launched earlier this week by CEIB Director General Amit Mohan Govil and SBI Chairman Dinesh Khara in a meeting with all public sector banks in Mumbai. It aims at equipping banks with quick access to information for taking timely decisions with regard to credit sanction, Indian Banks' Association said in a statement. As per 'Framework for timely detection, reporting, investigation etc. relating to large value bank frauds' dated May 13, 2015 and November 6, 2019 issued by the Department of Financial Services, Ministry of Finance, all Public Sector Banks (PSBs) seeks report from CEIB before the sanction of loan exceeding Rs 50 crore and above in case of new borrowers and if the existing borrower's accounts turn into a NPA. In August-2022, at the reques

JM Financial Q3 results: Profit rises 46% to Rs 278 cr, NPAs stand at 4.5%

JM Financial on Monday posted a 46 per cent rise in net profit to Rs 278 crore in the December quarter on the back of robust revenue growth. In a statement, the company said both its topline at Rs 1,261 crore, which is more than 33 per cent over the same period last fiscal, and the bottomline at Rs 278 crore are the highest quarterly numbers. A large contributor to the topline was equity broking where average daily turnover jumped 50 per cent to Rs 42,644 crore. From the credit side, the loan book expanded 49 per cent year-on-year to Rs 1,759 crore. The overall loan book declined to Rs 15,111 crore from Rs 15,234 crore year-on-year and from Rs 15,808 crore sequentially. During the quarter, recoveries stood at Rs 405 crore, the company said, adding that gross Non-Performing Assets (NPAs) stood at 4.5 per cent as against 3.6 per cent in the year-ago period, while net NPAs were flat at 2.2 per cent.

Bandhan Bank Q3 results: Net profit jumps over two-fold to Rs 733 crore

The bank's total income increased to Rs 5,210 crore in the latest December quarter from Rs 4,840.94 crore a year-ago, the bank said in a regulatory filing

Unity Small Finance Bank Q3 results: Net profit jumps 79% to Rs 110 crore

Unity Small Finance Bank, promoted by the Centrum Group, on Monday reported a 79 per cent increase in net income at Rs 110 crore in the December quarter, boosted by all-round good set of numbers. The bottom line was boosted by a Rs 257 crore income on the back of net interest margin that stood at 10.9 per cent, the bank said in a statement. While the bank's deposits crossed Rs 5,000 crore-mark, up 163 per cent year-on-year, its net advances increased 80 per cent to Rs 6,601 crore. The bank saw an improvement in asset quality with net NPAs (non-performing assets) coming down to 0.9 per cent. Its total income rose 208 per cent to Rs 438 crore, of which net income was Rs 328 crore, up 90 per cent, and net interest income rose 71 per cent on-year to Rs 257 crore. Unity Small Finance Bank was created out of the merger of the Centrum Capital of the Centrum group with the then scam-ridden PM Cooperative Bank.

Bank of India Q3 results: Net profit surges 62% to Rs 1,870 crore

State-owned Bank of India (BoI) on Friday posted a 62 per cent jump in net profit to Rs 1,870 crore in the December quarter on account of decline in bad loans. The Mumbai-headquartered bank had earned a net profit of Rs 1,151 crore in the year-ago period. The lenders' total income increased to Rs 16,411 crore during the third quarter of the ongoing fiscal against Rs 14,160 crore a year ago, BoI said in a regulatory filing. The interest income of the bank rose to Rs 15,218 crore as against Rs 12,728 crore in the third quarter of the previous year. Gross Non-Performing Assets (NPAs) of the bank declined to 5.35 per cent of the gross loans by the end of December 2023 from 7.66 per cent a year ago. Similarly, net NPAs, or bad loans, came down to 1.41 per cent from 1.61 per cent at the end of the third quarter. Capital Adequacy Ratio of the bank improved to 16.06 per cent as against 15.60 per cent at the end of December 2022. During the quarter ended December 31, 2023, the bank issue

Our top priority is to continue focus on high-quality assets: P R Seshadri

The managing director (MD) and chief executive officer (CEO) of the Kerala-based South Indian Bank, Seshadri talks about his priorities, the bank's growth roadmap and third quarter numbers

Profitability issues to be fully sorted in next 5 yrs: IDFC First Bank CEO

He says that the recent Reserve Bank of India norms on increased risk weights on unsecured loans impacted the capital adequacy ratio by 100 bps

A performance appraisal of IBC

Despite potential biases introduced by the Dosa approach in analysing its efficacy, the law appears successful in delivering on its key parameters

Higher demand could offset competitive pressures for housing finance cos

Can Fin Homes would see credit costs normalize after it took a provision of Rs 40 crore for fraud in Q2FY24 but net profit may fall by 5.0 per cent QoQ to Rs 1,390 crore

NARCL's offer prices lower than the liquidation value, say bankers

PSBs say this is the reason for slow progress of NPA sale

RBI proposes banks with less than 6% net NPAs to declare dividends

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 ..

RBI defers implementation of norms on penal charges levied by banks

Initially issued in August, these norms were set to be implemented from January 1, 2024

Credit growth to dip to 12-13% in FY25 from 16.5% in early Dec 2023: ICRA

Tight liquidity, hike in risk weights to impact bank loan growth

Bandhan Bank receives Rs 280 crore bid for Rs 776 crore home loan NPAs

Bandhan decided to sell housing loan NPAs, where repayment was due for over 180 days, worth Rs 776.62 crore as on September 30.

Bandhan Bank to transfer housing finance NPAs to asset reconstruction co

The board of private lender Bandhan Bank has approved a proposal to transfer the housing finance NPAs to an asset reconstruction company. In a regulatory filing on Thursday, the bank said the housing finance NPAs will have days past due (DPD) of more than 180 days. The outstanding amount that will be transferred to the company is Rs 775.62 crore as on September 30, 2023. The lender had received a binding bid of Rs 280.39 crore for the NPA portfolio on outright cash consideration basis, it said. It will go for bidding as per the Swiss Challenge Method, and the decision of the sale will be taken based on extant guidelines governing the bidding process and the relevant policy of the bank, the filing said. Meanwhile, Bandhan Bank also said it has signed an MoU with the Assam government, securing the mandate to collect revenue on the accounting portal of the state called GRAS. Under the agreement, consumers can pay all kinds of utility taxes of the Assam government as well as examinat