IDBI Bank Reports Profit for Second Consecutive Quarter

IDBI Bank Reports Profit for Second Consecutive Quarter, Clocks Net Profit of ₹ 144 crore

Highlights of Q1 FY 2021 (Quarter ending June 30, 2020) Financial Results

Major Highlights

Ø  Bank reports PAT of ₹ 144 crore  for Q1 FY 2021 against loss ₹ 3,801 crore  for
Q1-FY 2020

Ø  Bank registers Profit Before Tax (PBT) of ₹ 438 crore for Q1 FY 2021 against Loss Before Tax of ₹ 5,381 crore for Q1 FY 2020

Ø  Operating Profit for Q1 FY 2021 is ₹ 1,326 crore , YoY growth of 39%

Ø  NII at ₹ 1,773 crore for Q1 FY 2021, YoY growth of 22%

Ø  NIM at 2.81% for Q1 FY 2021, YoY growth of 68 bps

Ø  CASA ratio at 47.55%, YoY growth of 440 bps

Ø  Net NPA at 3.55%. CRAR at 13.37%

Ø  PCR at 94.71%, is the highest in the Banking Industry

Profitability

·        Net Profit reported for Q1-2021 is ₹ 144 crore as against loss of ₹ 3,801 crore for Q1-2020. Net Profit for Q1-2021 has improved by 7% against ₹ 135 crore reported for Q4-2020

·        Profit Before Tax (PBT) improved for Q1-2021 to ₹ 438 crore as against loss of           ₹ 5,381 crore for Q1-2020. PBT for Q1-2021 has improved by 51% against ₹ 290 crore reported for Q4-2020

·        Operating profit for Q1-2021 improved by 39% to ₹ 1,326 crore as against ₹ 951 crore for Q1-2020

·        Net Interest Income (NII) for Q1-2021 improved by 22% to ₹ 1,773 crore as against ₹1,458 crore for Q1-2020

·        Net Interest Margin (NIM) improved by 68 bps to 2.81% for Q1-2021 as compared to 2.13% for Q1-2020

·        Cost of Deposit improved by 64 bps to 4.65% for Q1-2021 as compared to 5.29% for Q1-2020 and improvement of 17 bps as compared to 4.82% for Q4-2020

·        Cost of Funds improved by 67 bps to 4.96% for Q1-2021 as compared to 5.63% for Q1-2020 and improvement of 23 bps as compared to 5.19% for Q4-2020

·        Non-Interest Income to Total Income improved to 17.01% for Q1-2021 as compared to 14.06% for Q1-2020

·        Cost to Net Income Ratio has improved to 52.25% in Q1-2021 from 58.48% in Q1-2020.

Business

·        CASA increased to ₹ 1,04,315 crore as on June 30, 2020 as against ₹ 99,590 crore as on June 30, 2019

·        Share of CASA in Total Deposits improved to 47.55% as on June 30, 2020 as against 43.15% as on June 30, 2019

·        The composition of Advances portfolio Corporate V/s Retail was realigned to 43:57 as on June 30, 2020 as against 48:52 as on June 30, 2019

·        Structured Retail Assets portfolio increased by ₹ 3,696 crore (7%) to ₹ 58,633 crore as on June 30, 2020 from ₹ 54,938 crore as on June 30, 2019

Asset Quality

·        Gross NPA ratio improved to 26.81% as on June 30, 2020 as against 29.12% as on June 30, 2019 and 27.53% as on March 31, 2020

·        Net NPA ratio improved to 3.55% as on June 30, 2020 as against 8.02% as on June 30, 2019 and 4.19% as on March 31, 2020

·        Provision Coverage Ratio (including Technical Write-Offs) improved to 94.71% as on June 30, 2020 from 87.79% as on June 30, 2019 and 93.74% as on March 31, 2020

·        First Time NPAs reduced to ₹ 69 crore in Q1-2021 from ₹ 3,486 crore in        Q1-2020. FTNPA for Q4-2020 stood at ₹ 727 crore

Capital

·        Tier 1 improved to 10.59% as on June 30, 2020 as against 6.14% as on June 30, 2019

·        CRAR improved to 13.37% as on June 30, 2020 as against 8.14% as on June 30, 2019

·        Risk Weighted Assets (RWA) reduced by 5.70% to ₹ 1,60,994 crore as on June 30, 2020 as against ₹ 1,70,734 crore as on June 30, 2019

COVID 19 Impact

·        The Bank continues to hold provisions against impact of COVID 19. During quarter ended June 2020, the Bank has made further COVID 19 related provisions of  ₹ 189 crore (Cumulative provision of ₹ 436 crore). The provision made by the Bank is more than minimum required as per the RBI guidelines.

IDBI-LIC Major achievements during Q1 FY 2021

·        LIC renewal Premium Collection through- Cash & Cheque increased during COVID-19. ~95% Branch activation & 1.15 lakh Transactions during Q1FY21.

·        MOU for Tie-up with LIC- Card Services Limited for launching co-branded credit cards executed.

·        New Insurance products on boarded on online BANCA platform ~85 % Branch activation & 7192 NOPs sourced with ₹ 95 crore premium during Q1 FY2021 with YOY Growth of 22%.

·        Agreement executed for appointment of LICHFL - Financial Service Limited (LICHFL-FSL) as corporate DSA for sourcing of NSRA (MSME & Agriculture) and select SRA loans (Auto, Personal & Education Loan).

Significant Developments during Q1 2021

·        The Bank launched FASTag for retail customers to enable automatic and cashless toll payments using RFID tag pasted on their vehicles.

·        The Bank received the Client Innovation Award from Infosys for Dynamic Virtual Account Product which facilitates electronic collection of proceeds with API Integration for Corporate and Institutional Clients.

·        The Bank received NPCI Certification for Electronic Toll Collection at Toll Plazas of IDBI Bank assisted and other Concessionaires.

·        The Bank has received citation for three awards in different categories from Association of Business Communicators of India (ABCI) for IDBI Bank’s quarterly Hindi Magazine ‘Vikas Prabha’.

·    The Board of Directors of IDBI Bank Ltd. (IDBI Bank) met in Mumbai today and approved the financial results for the Quarter ended June 30, 2020.

ESAF Small Finance Bank Profit Soars

ESAF Small Finance Bank Profit Soars 110%

ESAF Small Finance Bank has recorded a 110.86 %, increase in its net profit for the year ended March 31,2020.   The net profit for the Financial Year increased to 190.39 crore from Rs 90.29 crore registered in the year before. 

Commenting on the results, K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said “the encouraging results showed the strong performance of the bank despite a slowdown in the market. Also the growth in the business has not affected the asset quality. It also highlighted the fact that we are delivering Joy of banking to all by keeping our focus on empowering of the poor and the marginalized”.

The business during the year increased by 49.05% to touch Rs 13,846 crore.  The deposits have registered an increase of 62.81 % to Rs 7,028 crore and advances (Assets Under Management) increased by 37.11 % to the tune of Rs 6818 crore. The gross NPA percent reduced from 1.61 % to 1.53% and Net NPA reduced from 0.77% to 0.64% during the year.  Also, the provision coverage ratio improved to 79.93% from 78.45% during the previous year.

The Capital position of the bank is comfortable at 24.03% with Tier 1 CRAR of 20.99% as against regulatory requirement of 15% and 7.5% respectively. The bank has sufficient capital cushion for it’s medium term business plan and also has enough headroom under Tier II.

The resilience of the bank’s customer segment is encouraging and it has taken adequate steps to uplift them as the activities are slowly resuming. We are optimistic about the future as the business relaxations given to the rural entrepreneurs can uplift the rural economy and we can play a key role in the same” Mr. Thomas concluded.

At present, ESAF Small Finance Bank has presence in 17 states and one Union Territory in India. As on March 31, 2020, the Bank is serving 35 lakh customer base through 454 branches and 14 Business Correspondent Entities and is operating 222 ATMs across the country.   

ESAF Small Finance Bank Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a draft red herring prospectus (“DRHP”) with the Securities and Exchange Board of India. The DRHP is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers, Axis Capital Limited, Edelweiss Financial Services Limited, ICICI Securities Limited and IIFL Securities Limited, at www.axiscapital.co.in, www.edelweissfin.com, www.icicisecurities.com and www.iiflcap.com respectively, and the websites of the stock exchanges at www.bseindia.com and www.nseindia.com, respectively. 

Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see "Risk Factors" of the RHP/ Prospectus when available. Potential investors should not rely on the DRHP for any investment decision

Federal Bank delivers strong operating performance with

Federal Bank delivers strong operating performance with 27% growth in operating profit

Federal Bank announced its audited financial results for the quarter and year ended 31^st March 2020 today.

Highlights

·         Operating profit registers a growth of 27.10% to reach ₹ 959.31 Cr in Q4 FY20 ·         Asset quality improves significantly with gross NPA coming down by 8 bps and Net NPA coming down by 17 bps on a YoY basis to 2.84% and 1.31% respectively ·         Material improvement in provision coverage ratio as it improves by 809 bps on a QoQ basis to 53.39% ·         Total business of the Bank registered a growth of 12.02% to reach ₹ 2,76,443.30 Cr ·         Deposits record a growth of 12.85% to reach ₹ 1,52,290.08 Cr ·         Retail advances record a growth of 19.39% ·         Gold Loans grow by 28.68% ·         NRE deposits grow by 14.20 % to reach ₹ 57,223.13 Cr

Commenting on the results and financial performance, Mr. Shyam Srinivasan, Managing Director & CEO,  Federal Bank said, the Bank has delivered a robust operating performance with the operating profit registering a growth of 27%. The asset quality of the Bank has improved substantially, which is a positive.  To face any unfavorable situation that may arise due to the pandemic, we have increased the provisions  substantially and strengthened the balance sheet. On the business front, the Bank has achieved robust  growth in the retail segment with housing loans and gold loans growing handsomely.

 Working Results at a Glance

                                                                                                                                                                       (₹ in Crore)

Particulars	Quarter Ended On			Year Ended On
	31-03-20	31-03-19	Growth %	31-03-20	31-03-19	Growth %
Net Profit	301.23	381.51	ê21.04%	1,542.78	1,243.89	é24.03%
Operating Profit	959.31	754.75	é27.10%	3,204.69	2,763.10	é15.98%
Total Income	4,107.95	3444.04	é19.28%	15,142.16	12,770.05	é18.58%
Net Interest Income	1,216.02	1096.53	é10.90%	4,648.90	4,176.35	é11.31%
Other Income	711.11	411.72	é72.72%	1,931.41	1,351.02	é42.96%

OPERATING REVIEW

Total Business

The total business of the Bank reached ₹ 2,76,443.30 Cr as on 31^st March 2020 from ₹ 2,46,783.61 Cr as on 31^st March 2019 registering a growth of 12.02%.

Credit Growth

Gross Advances reached ₹ 1,24,153.18 Cr as on 31^st March 2020 from ₹ 1,11,829.27 Cr as on 31^st March 2019 registering a growth of 11.02%. Retail advances grew by 19.39% to reach ₹ 37,877.97 Cr as on 31^st March 2020 from ₹ 31,726.99 Cr as on 31^st March 2019. Gold loans registered a robust growth 28.68% to reach ₹ 9,301.00 Cr as on 31^st March 2020. Housing Loans went up by 18.42% to reach ₹ 18,229.34 Cr. Agri advances registered a growth of 12.50% to reach ₹ 12,874.26 Cr as on 31^st March 2020 from ₹ 11,444.00 Cr as on 31^st March 2019. Business Banking advances grew by 10.93% to reach ₹ 10,609.75 Cr.

Deposit Growth

Deposits recorded a growth of 12.85% to reach ₹ 1,52,290.09 Cr as on 31^st March 2020 from ₹ 1,34,954.34 Cr as on 31^st March 2019. The CASA deposits reached ₹ 45,450.24 Cr as on 31^st March 2020. The NRE deposits of the Bank posted a growth of 14.20% during the year to reach ₹ 57,223.13 Cr as on 31^st March 2020.

Operating Profit & Net Profit

The Bank delivered an annual operating profit of ₹ 3,204.69 Cr as on 31^st March 2020 against ₹ 2,763.10 Cr as on 31^st March 2019 registering a growth of 15.98%. Quarterly operating profit rose to ₹ 959.31 Cr from ₹ 754.75 Cr registering a growth of  27.10%. The annual net profit reached an all-time high of ₹ 1,542.78 Cr.

Margins

Annual Net Interest Income increased to ₹ 4,648.90 Cr from ₹ 4,176.35 Cr registering a growth of 11.31% as on 31^st March 2020 while the quarterly Net Interest Income increased to ₹ 1,216.02 Cr from ₹ 1,096.53 Cr as on 31^st March 2020. Net Interest Margin stood at 3.05% for FY20 while the quarterly Net Interest Margin stood at 3.04%.

Asset Quality

The Gross NPA of the Bank as on 31^st March 2020 stood at ₹ 3,530.83 Cr. Gross NPA as a percentage to Gross Advances is 2.84% coming down by 8 bps as on 31^st March 2020. The Net NPA stood at ₹ 1,607.17 Cr and this as a percentage to Net Advances is 1.31% coming down by 17 bps as on 31^st March 2020. The Provision Coverage Ratio (including technical write-offs) stood at 72.48% as on 31^st March 2020.

Capital Adequacy & Net worth

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 14.35% as on 31^st March 2020. The Net Worth of the Bank was at ₹ 14,517.61 Cr as on 31^st March 2020.

Major Partnership

Tie up with MoneyGram to expand Account Deposit capabilities to millions of customers in India

Footprint

The Bank has 1263 branches, 1937 ATMs/ Recyclers as on 31^st March 2020. The Bank also has its Representative Offices at Abu Dhabi and Dubai and an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City).

Q4FY20 Vs Q4FY19

·         Total Deposits increased to ₹ 1,52,290.09 from ₹ 1,34,954.34 Cr registering a growth of 12.85%

·         NRE deposits increased by 14.20 % to reach ₹ 57,223.13 Cr

·         Gross Advances increased from ₹ 1,11,829.27 Cr to ₹ 1,24,153.18 Cr registering a growth of 11.02%

·         Gold Loans recorded a staggering growth of 28.68% to reach ₹ 9,301.00 Cr

·         Retail Advances grew by 19.39% to reach ₹ 37,877.97 Cr

·         Agri advances reached ₹ 12,874.26 Cr registering a growth of 12.50%

·         Housing loans registered a growth of 18.42% to reach ₹ 18,229.34 Cr

·         Business Banking advances grew by 10.93% to reach ₹ 10,609.75 Cr

Major Financial Indicators (Standalone Nos.)

                                                                                                                                                                        (₹ in Cr)

Business Figures	Year Ended On
	31-03-2020	31-03-2019	Growth %)
Total Deposits	1,52,290.09	1,34,954.34	é12.85%
CASA	46,450.24	43,387.67	é07.06%
Gross Advances	1,24,153.18	1,11,829.27	é11.02%
Retail Advances	37,877.97	31,726.99	é19.39%
Agri Advances	12,874.26	11,444.00	é12.50%
Business Banking Advances	10,609.75	9,564.06	é10.93%
Gross NPA (%)	2.84	2.92	ê8 bps
Net NPA (%)	1.31	1.48	ê17 bps
Capital
Equity Capital	398.53	397.01
Net Worth	14,517.61	13,273.04	é09.38%
Capital Adequacy (%)	14.35	14.14
Tier I (%)	13.29	13.38
Tier II (%)	1.06	0.76