IDFC Bank, which started banking operations in October 2015, reported a 21% decline in net profit to ₹191 crore for the quarter ended December 31 as provisions went up from ₹22 crore to ₹232 crore.
Provisions increased due to a sharp rise in gross non-performing assets which went from 3.1% to 7% of gross advances. Gross NPAs were at ₹3,587 crore as on end-December. Net NPA ratio increased from 1% to 2.6%.
The bank’s net interest income went up by 32% to ₹535 crore during the period under review while non-interest income increased by 60% to ₹320 crore.
Another private sector lender, Kotak Mahindra Bank reported a 39% increase in net profit to ₹880 crore. Its net interest income (NII) rose 16% to ₹2,050 crore while net interest margin for the third quarter was 4.49%, climbing from 4.34% in the same period of the previous year.
Its gross NPA went up from 2.3% to 2.42% while net NPA rose from 0.96% to 1.07%. However, provisions declined from ₹235 crore — recorded during the third quarter of the previous financial year — to ₹192 crore.
Meanwhile, public sector Indian Overseas Bank cut down its loss in the third quarter to ₹554.44 as compared with ₹1,425 crore reported during the same period of the previous year. In absolute terms, its gross NPA came down marginally on a sequential basis from ₹34,724 crore (21.77%) to ₹34,502 crore (22.42%).
Indian Bank net rises
Indian Bank’s standalone net profit rose 670.4% for the third quarter ended December 31, 2016 to ₹373.48 crore due to a decrease in provisioning for bad loans.
The bank had posted a net profit of ₹48.48 crore during the third quarter of 2015-16. Total income increased from ₹4,444.58 crore to ₹4,557.25 crore, said Mahesh Kumar Jain, Indian Bank Managing Director and CEO.
During the period under review, the bank’s gross non-performing assets increased to 7.69% from 5.61% amounting to ₹9,675.10 crore. Net non-performing assets increased from ₹3,881 crore to ₹5,798.34 crore. The bank had reduced its provision coverage ratio from ₹718 crore to ₹540 crore. Capital adequacy ratio of the bank as per Basel III norms stood at 13.89%.
CASA deposits grew by 33.47% to ₹69,003 crore, while retail advances improved from 49.52%. The bank would now focus on increasing retail lending. During the demonetisation period, the bank handled 1.48 crore deposit transactions and 3.73 crore withdrawal transactions involving an outlay of ₹35,042 crore and ₹19,742 crore respectively.
