Indian Bank reported a 31.3 per cent drop in its net profit for the first quarter ended June 30, 2013, at Rs. 317.39 crore against Rs. 461.75 crore in the same period in the previous year. However, the operating profit, before provisions and contingencies, has risen to Rs. 859.29 crore from Rs. 840.23 crore.
Addressing presspersons here on Monday, T. M. Bhasin, Chairman and Managing Director, said significant provisions in respect of non-performing assets (Rs. 134 crore) and allocations towards employee benefits, including wage revision, pension and gratuity to the tune of Rs. 419.50 crore, had its impact on the net profit.
Total income of the bank rose by 16.6 per cent during the period under reference to Rs. 4,195.48 crore from Rs. 3,596.50 crore. However, there was a sharp rise of 138 per cent in other income to Rs. 529.67crore from Rs. 222.70 crore, mainly due to treasury operations. The gross NPA stood at 3.41 per cent against 1.66 per cent and the net NPA at 2.31 per cent against 1.04 per cent. Mr. Bhasin said the total business of the bank registered a year-on-year growth of 17.2 per cent to Rs. 2,58,795 crore with deposits rising by 17.8 per cent to Rs.1,49,582 crore and advances by 16.3 per cent to Rs. 1,09,213 crore.
With regard to key ratios, Mr. Bhasin said the net interest margin was 2.74 per cent and return on average assets at 0.76 per cent.
Vijaya Bank on Monday reported a net profit of Rs.132 crore in the first quarter ended June 30, 2013, an increase of 19 per cent over the corresponding quarter of the previous year. The bank made an operating profit of Rs.330.39 crore, a 28 per cent increase over the previous year.
Chairman and Managing Director H. S. Upendra Kamath said the loan book remained stagnant during the quarter because of poor credit offtake.
“Frankly, I do not see credit growth picking up during this (second) quarter. Growth will mainly come from the credit that is already in the pipeline.”
The bank’s net interest margin shrank by 14 basis points last year.The silver lining was the unprecedented 613 per cent increase in treasury profits that the bank made during the quarter.
Pressures on margins resulted in Syndicate Bank reporting a net profit of Rs.452 crores, just 2.37 per cent higher than in the corresponding quarter of 2012-13. The bank made an operating profit of Rs.949 crore, 13 per cent higher than a year earlier.
The ratio of net non-performing assets to total assets increased from 0.93 per cent in 2012-13 to 1.19 per cent during the last quarter. The bank’s Chairman and Managing director Sudhir Kumar Jain said “substantial recoveries” were likely to be made during the current quarter. “The NPA situation is under control because a significant proportion of the accounts are of small borrowers,” he said.
The net profit of Allahabad Bank dropped 19 per cent to Rs. 413.1 crore in the first quarter of 2013-14, compared to Rs.514 crore a year ago, on higher provisioning. Addressing the media here on Monday , Chairman & Managing Director Shubhalakshmi Panse said that operating profit had increased by 6.9 per cent year-on-year.
Noting that industry was going through tough times, she said that there were fresh slippages in the first quarter and that eight big accounts, including some associated with that of major city corporates, had added Rs. 675 crore to the bank’s non performing assets.
She, however, pointed out that fresh additions to the bank’s book of bad loans had been curbed. The bank’s total restructured portfolio stood at Rs. 13,595 crore against Rs. 14,874 crore on March 31, 2013. “We are constantly monitoring our loan portfolio,” she said, pointing out that cash recovery of Rs. 107 crore had been made during the quarter under review.
The bank had plans to expand its overseas footprint by opening a second branch in Hong Kong and new ones in Dhaka, West Asia and Africa.
City Union Bank
City Union Bank is planning to augment capital to the tune of Rs. 350 crore inclusive of premium through qualified institutional placement (QIP).
Addressing presspersons here through a video conference, on Monday, N. Kamakodi, Managing Director and CEO, said it was also decided at a board meeting held in Kumbakonam to bifurcate the 40 per cent foreign ownership in the bank in to 35 per cent for FIIs and FDIs and five per cent for NRIs. The bank has reported a rise of 22 per cent in its first quarter net profit at Rs. 90.29 crore against Rs. 73.89 crore in the same period in the previous year.
The gross profit has risen by 41.5 per cent to Rs. 161.57 crore from Rs. 114.15 crore. Mr. Kamakodi said the bank could by and large contain NPA (non-performing assets) slippages and the reason for that was it had not actively participated in the consortium based lending. The net NPA stood at 0.63 per cent and the provision coverage ratio was 71 per cent.
Total income of the bank rose by 24.9 per cent to Rs. 702.82 crore from Rs. 566.90 crore in the year-ago period. The net interest income rose by 35.8 per cent to Rs. 187.35 crore from Rs. 137.94 crore with a healthy net interest margin of 3.55 per cent.