When a branch of a bank incurs loss ,or when there is rise in Bad debts ,Branch head is fired but when a bank incurs loss or faces erosion in profit, are anyone of top officials punished?
When a branch is unable to achieve the set target he is accused of less efficient and less skilled but when entire bank fail to achieve the target , it is said due to global recession. Why?
And when many banks suffer in profit or incurs loss or when majority of banks show exorbitant rise in Gross Non Performing Assets , Are ministers who guide and dictate bankers are punished or even subjected to torture as bank officials are subjected to ?
SBI net profit falls 35% on higher provisions
MUMBAI, NOV 13:
State Bank of India’s second quarter net profit slumped 35 per cent as the country's largest lender made higher provisions to hedge against the now familiar script of rising bad loans.
In the July to September period, the bank posted a net profit of Rs 2,375 crore against Rs 3,658 crore in the previous year period.
The bank set aside Rs 2,645 crore during the quarter as a cover against potential bad loans. In the same period last year, the bank had set aside Rs 1,837 crore.
Net interest income, the difference between interest earned and expended, rose 12 per cent to Rs 12,251 crore.
Bad loan amounts up 30%
The amount of the bank’s non-performing loans rose by 30 per cent to Rs 64,206 crore (Rs 49,202 crore, a year ago). Gross NPA as a percentage of total advances rose to 5.64 per cent from 5.15 per cent, a year ago.
In the three month period ended September 2013, accounts worth Rs 3,315 slipped into NPA.
Andhra Bank Q2 net profit slumps 78.3 pct to Rs 70.65 cr
Andhra Bank today reported a massive 78.3 per cent decline in net profit at Rs 70.65 crore for the second quarter ended September 30 due to higher provisioning for non-performing assets.
The city-headquartered public sector bank's net profit for the same quarter last year stood at Rs 325.63 crore.
In a BSE filing, Andhra Bank said its total income rose by 11.73 per cent to Rs 3,817.57 crore during the reported quarter as against Rs 3,416.55 crore in the July-September quarter of 2012-13.
The bank had to make a Rs 502 crore payment towards provisions and contingencies during the quarter under review, of which provisioning for NPAs during the quarter stood at Rs 200 crore. The total provisioning and contingencies stood at Rs 140 crore during the corresponding quarter last fiscal.
The Andhra Bank reported net non-performing assets for the July-September quarter at Rs 3,477 crore (3.54 per cent) as against Rs 1,831 crore (2.16 per cent) in the corresponding quarter last year.
Rising bad debt takes a toll on bank earnings in September quarter
Central Bank surprises analysts with Rs.1,501 crore loss; Corporation Bank reports 96% drop in profit for September quarter=Livemint
Punjab and Sind Bank’s profit dropped 63% to Rs.43 crore from Rs.117 crore in the year-ago period. Its gross NPAs worsened to 4.12% in the September quarter from 2.17% in the year-ago period. Provisions rose to Rs.187 crore against Rs.65 crore earlier.
Punjab and Sind Bank shares ended at Rs.46.80 on BSE, down 3.7%, while the benchmark Sensex fell 0.85% to 20,490.96 points and the Bankex declined 1.42% to 12,265.59. Vijaya Bank ended Monday at Rs.42.15, down 0.71%. Corporation Bank lost 0.07% to end trading at Rs.299.60.
Corp Bank flounders in tough quarter despite business growth
Punjab and Sind Bank’s profit dropped 63% to Rs.43 crore from Rs.117 crore in the year-ago period. Its gross NPAs worsened to 4.12% in the September quarter from 2.17% in the year-ago period. Provisions rose to Rs.187 crore against Rs.65 crore earlier.
Punjab and Sind Bank shares ended at Rs.46.80 on BSE, down 3.7%, while the benchmark Sensex fell 0.85% to 20,490.96 points and the Bankex declined 1.42% to 12,265.59. Vijaya Bank ended Monday at Rs.42.15, down 0.71%. Corporation Bank lost 0.07% to end trading at Rs.299.60.
Corp Bank flounders in tough quarter despite business growth
MANGALORE: A tough quarter despite increase in business reflects the growth story of city based Corporation Bank. The net profit of the bank for the second quarter ending September 30 decreased to Rs 15.48 crore as against Rs 405.71 crore for the second quarter of the previous fiscal. This is mainly due to increase in provision to the tune of Rs 368.79 crore over second quarter of last fiscal, chairman and managing director S R Bansal said.
Giving numbers for the second quarter after the board meeting here on Monday, Bansal said the loss is mainly due to "extraordinary requirement" towards investment depreciation and higher provision towards non-performing assets. The operating profit for the second quarter too has dipped to Rs 664.31 crore as against Rs 685.75 crore during the second quarter in last fiscal and the bank has laid out a road map to come out of this downslide, he said.
The steps mooted include increase mobilisation of current account, savings account, ensuring quality credit disbursal, concentrating on customer acquisition with focus on next generation bankers, opening more branches and looking at delivery channels to reach out to the customers, and focus on asset quality. The last spoken parameter includes recovery of NPAs, and monitoring exisiting portfolios to ensure there are no more slippages, he said.
Giving numbers for the second quarter after the board meeting here on Monday, Bansal said the loss is mainly due to "extraordinary requirement" towards investment depreciation and higher provision towards non-performing assets. The operating profit for the second quarter too has dipped to Rs 664.31 crore as against Rs 685.75 crore during the second quarter in last fiscal and the bank has laid out a road map to come out of this downslide, he said.
The steps mooted include increase mobilisation of current account, savings account, ensuring quality credit disbursal, concentrating on customer acquisition with focus on next generation bankers, opening more branches and looking at delivery channels to reach out to the customers, and focus on asset quality. The last spoken parameter includes recovery of NPAs, and monitoring exisiting portfolios to ensure there are no more slippages, he said.
Central Bank of India posts Rs 1,509 cr net loss
PNB, UCO, Indian Bank see rise in NPAs
PNB reports 53% drop in second quarter profit; Indian Bank’s profit falls 38%; UCO Bank profit up nearly fourfold
New Delhi: State-run banks that reported earning on Friday showed a sharp deterioration in asset quality. While Punjab National Bank (PNB) and Indian Bank reported a sharp fall in profit, UCO Bank saw its profit jump.
PNB reported a 53% drop in fiscal second quarter profit as it had to set aside more money to cover bad loans. Net profit dropped to Rs.505.49 crore in the three months ended 30 September from Rs.1,065.58 crore in the year-ago period, the bank said on Friday.
Net interest income grew 10.1% to Rs.4,015 crore from Rs.3,647 crore. Other income fell marginally to Rs.899.3 crore from Rs.907.2 crore.
Total provisions rose 38% in the quarter to Rs.2,029.35 crore, mainly on account of higher provisioning for standard restructured advances and depreciation of investments.
Gross non-performing assets (NPA) increased to 5.14% of total loans in the quarter from 4.66% in the year earlier with fresh slippages at Rs.2,009 crore and restructuring of around Rs.2,700 crore in the quarter.
K.R. Kamath, chairman and managing director, said things should start getting better from the third quarter. “The economy is showing signs of improvement with the steps taken by the government and Reserve Bank of India,” he said. Asset quality and credit growth should improve because of this, he said. “NPA problems should be behind us now.”
PNB’s asset quality performance is similar to that of other state-owned banks, given the prevailing macro environment, Vaibhav Agrawal, an analyst at Angel Broking, said in a note.
“The bank witnessed continued asset quality weakness, as both gross addition to NPAs and incremental restructuring remained elevated,” he said.
While advances grew by only 6%, deposit growth was flat at 1.2%. Terming the consolidation phase over, Kamath said the bank will look to expand its credit and deposit base in the coming quarters and will target a 15% growth in deposits and advances for the full year.
Net interest margin (NIM)—a key measure of profitability of banks, narrowed to 3.47% from 3.5%. Margins may continue to remain under pressure as the bank, while announcing an increase in deposit rates by up to 50 basis points across various maturities on Friday, said it will not immediately increase its base lending rate.
“We need money from deposits to fund our credit growth. Increase in deposit rates may impact margins,” he said. “We have been maintaining an NIM of 3.55% for a few years now. It may be time to work on a lower NIM so that we do not miss out on the opportunities in the market,” he added.
Chennai-based Indian Bank’s net profit fell 38% to Rs.306 crore from Rs.496.6 crore in the corresponding year- ago period.
Gross NPAs increased sharply to 3.76% from 2.06%.
UCO Bank said net profit jumped almost fourfold in the September quarter to Rs.400.20 crore from a year earlier as the bank’s net interest income increased 54.9% and it focused on retail banking.
Total interest earned by the bank increased by 5.9% to Rs.4,444.07 crore during the period, while interest paid on advances declined 9.6% toRs.2,874.68 crore. Net interest income for the period was Rs.1569.39 crore.
Total deposits increased by 16% to Rs.1,88,778.60 crore and total advances were up by 14% to Rs.1,35,232.98 crore. Revenue from retail banking increased 48.67% to Rs.1553.83 crore, while that from corporate banking fell 13% to Rs.1990.65 crore.
Kolkata-based UCO Bank’s total bad loans or gross NPAs rose 25% toRs.5,887.86 crore. Net NPA increased 21% to Rs.3,468.01 crore. Total provisions increased 27% to Rs.758.68 crore.
Shares of PNB fell 4.21% to Rs.522.05 on BSE; Indian Bank’s stock fell 3.57% to Rs.96 and UCO Bank gained 5.28% at Rs.74.75.
Manish Basu in Kolkata contributed to this report.
Dena bank Q2 net falls sharply, J&K Bank net rises
Dena Bank posts a 55.2% drop Q2 profit on a sharp rise in provisions to take care of the bank’s bad debts
Mumbai: Public sector Dena Bank on Saturday reported a 55.2% drop in second quarter profit on a sharp rise in provisions to take care of the bank’s bad debts.
Profit for the second quarter ended September was at Rs.107.38 crore as against Rs.239.64 crore in the year-ago period. Provisions jumped 221% toRs.335.19 crore as bad debts rose to 3% of the bank’s advances from 1.97% earlier.
Meanwhile, private sector Jammu and Kashmir Bank Ltd said its second quarter net profit rose 12.29% to Rs.302.66 crore. Bad debts as a percentage of advances were at 1.69% against 1.59% a year ago. Provisions rose toRs.557 crore in the second quarter against Rs.328 crore in the year ago perio
United Bank of India books loss of 489 crore in Q2
New Delhi: United Bank of India today reported a loss of Rs. 489.47 crore for the July-September quarter of 2013-14 fiscal on account of rise in non-performing assets.
The Kolkata-based state-owned lender had earned a net profit of Rs.144.63 crore for the same period of 2012-13.
However, the total income increased to Rs. 2,876.77 crore, from Rs.2,532.39 crore in the year-ago period.
The provision and contingencies of the bank rose nearly four-fold toRs. 987.35 crore as compared to Rs. 258.59 crore in the same period a year ago, United Bank of India said in a filing to the BSE.
During the first half of the current fiscal, the bank's loss was Rs.444.74 crore, as against profit of Rs. 318.52 crore in H1, 2012-13.
The total income rose to Rs. 5,745.58 crore in the first six months fromRs. 5,031.41 crore in the year-ago period.
As of September 30, 2013, gross non-performing assets (NPAs) of the bank was 7.52 per cent of gross advances, as against 3.88 per cent year a year ago. Its net non-performing assets rose to 5.39 per cent from 1.95 per cent.
The Kolkata-based state-owned lender had earned a net profit of Rs.144.63 crore for the same period of 2012-13.
However, the total income increased to Rs. 2,876.77 crore, from Rs.2,532.39 crore in the year-ago period.
The provision and contingencies of the bank rose nearly four-fold toRs. 987.35 crore as compared to Rs. 258.59 crore in the same period a year ago, United Bank of India said in a filing to the BSE.
During the first half of the current fiscal, the bank's loss was Rs.444.74 crore, as against profit of Rs. 318.52 crore in H1, 2012-13.
The total income rose to Rs. 5,745.58 crore in the first six months fromRs. 5,031.41 crore in the year-ago period.
As of September 30, 2013, gross non-performing assets (NPAs) of the bank was 7.52 per cent of gross advances, as against 3.88 per cent year a year ago. Its net non-performing assets rose to 5.39 per cent from 1.95 per cent.
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