PSU banks announce share-swap ratios ahead of April 1 merger

Following the footsteps of State Bank of India and Bank of Baroda, the boards of 10 public-sector banks on Thursday approved mergers and issued share-swap ratios to create four large banks in the economy.
The four anchor banks will be Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. The merger will be effective from April 1.
Last year, Bank of Baroda took over Vijaya Bank and Dena Bank. Before that, State Bank of India (SBI) had merged all its five associate banks with itself to enter the global top 50 banks’ list in terms of size. Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce to create the largest bank in the country after State Bank of India.

According to notifications to the stock exchanges, Delhi-based PNB will issue 1,150 shares for 1,000 shares of Oriental Bank of Commerce, and 121 shares for 1,000 shares of United Bank of India.
Mumbai-based Union Bank of India will take Andhra Bank and Corporation Bank. Union Bank of India will issue 325 shares for 1,000 shares of Andhra Bank, and 330 shares for 1,000 shares of Corporation Bank.
Bengaluru-based Canara Bank will issue 158 shares for 1,000 shares of Syndicate Bank.
Allahabad Bank said for every 1,000 shares (face value Rs 10) of Allahabad Bank, there would be 115 shares (face value Rs 10) of Indian Bank.
The Union Cabinet had approved the consolidation to build the mega banks “to create more efficient and bigger public sector banks in the challenging environment to meet the credit needs of a growing economy and to achieve operational efficiency by scale of business”. The amalgamation will lead to a wide geographical reach, technology adaption, and, more importantly, better utilisation of scarce capital.
A grievance redress system has been put in place, and a committee has been formed headed by a retired judge. If shareholders have any issue with the swap ratio — for example, if they feel they didn’t get enough time or if they need information — they can raise it. This is the board-approved swap ratio.
“After the committee receives all the grievances, it will have seven days to recommend changes, if needed, which will be the final swap ratio,” said a top official of a PSB to be merged.
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Corporation Bank Q3 net ptofit jumps on higher interest income


Public sector lender Corporation Bank on Friday said its consolidated net profit increased seven fold to Rs 420.83 crore in third quarter ended December 31, 2019 on higher interest income, albeit provisions for bad loans surged. The bank had posted a net profit of Rs 59.94 crore during the corresponding period a year ago.

Income increased to Rs 6,051.93 crore, from Rs 4,112.29 crore, the lender said in a regulatory filing.

On a standalone basis, the net profit increased to Rs 420.68 crore in third quarter ended December 31, 2019 from Rs 60.53 crore a year ago.

Notwithstanding that the bank's bad loan ratio has come down from the year-ago level, still it continues to remain elevated, the filing said.

In absolute terms, the gross NPAs stood at Rs 19,557.16 crore in the quarter under review, as against Rs 21,921.42 crore a year ago. Net NPAs were valued at Rs 6,321.81 crore, down from Rs 13,521.22 crore.

Despite fall in bad loan provisions, the bank kept aside a higher provision of Rs 1,300.35 crore for the quarter, compared with Rs 842.27 crore reserved for the year-ago quarter, the filing said.

During the quarter ended December 2019, the bank raised Basel III compliant tier II bonds amounting to Rs 1,000 crore, it added.

For the accounts covered under the provisions of Insolvency and Bankruptcy code (IBC), the bank has made a total provision of Rs 7,404.96 crore (100 per cent of gross NPAs) including additional provision of Rs 905 crore in said accounts as on December 31, 2019, the filing said.

For other accounts pending resolution, under the provisions of IBC, the bank is holding total provision of Rs 14,435.24 crore (96.35 per cent of gross NPAs), Corporation Bank said.

As per RBI norms, the bank has restructured and retained advances of Rs 632.05 crore as standard assets as on December 31, 2019 and made provision of Rs 31.60 crore as on December 31, 2019 in respect of such borrowers.

On migrating to the lower tax regime which was introduced by the government for the corporate sector in September, Corporation Bank said it is currently in the process of evaluating this option.

Provision coverage ratio of the bank at end of December 31, 2019 was 84.58 per cent as compared to 66.13 per cent as on December 31, 2018.
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Corporation Bank net profit rises 26%

State-owned Corporation Bank on Wednesday reported a rise of 26 per cent in its net profit to Rs 129.76 crore for the second quarter ended September 30, on the back of lower provisioning for bad loans. The bank had posted a net profit of Rs 103.01 crore in the corresponding quarter of 2018-19.

Its total income also rose to Rs 4,712.97 crore in the second quarter of 2019-20 from Rs 4,216.79 crore in the corresponding quarter of 2018-19, the bank said in a regulatory filing.

The lender's asset quality witnessed improvement as the gross non-performing assets (NPAs) fell to 15.43 per cent (Rs 20,822.83 crore) of the gross advances at the end of September 2019, compared with 17.46 per cent (Rs 21,714.16 crore) by the year-ago period.

Net NPAs or bad loans fell substantially to 5.59 per cent (Rs 6,751.20 crore), against 11.65 per cent (Rs 13,534.01 crore) a year ago.

This resulted into lesser provisioning for bad loans and contingencies for the quarter at Rs 789.45 crore from Rs 808.32 crore a year ago. Of this, provisioning for bad loans was Rs 658.09 crore, down from Rs 728.56 crore a year ago.

The bank said it carried a provision of Rs 28.32 crore as on September 30, which is 5 per cent of outstanding food credit availed by the Punjab government, as per the Reserve Bank of India.

Further, the bank said it continues to hold provisions additionally made as of March 31 in respect of eligible National Company Law Tribunal (NCLT) accounts, those under NPA category as well as for under standard assets accounts.

The bank has reversed deferred tax assets of Rs 119.36 crore, during the half year ended 30th September, 2019. On 20th September, 2019, vide Taxation Laws (Amendment) Ordinance 2019, the Government of India inserted Section 115BAA in the Income Tax Act 1961, which provides domestic companies a non-reversible option to pay corporate tax at reduced rates effective 1st April, 2019 subject to certain conditions," the lender said.

It also added that the bank is currently in the process of evaluating this option.

Corporation Bank continues to recognise the taxes on income for the quarter and the half year ended September 30, 2019, as per the earlier provision of tax laws.


Provision coverage ratio of the bank as of September 30 was 83.95 per cent, compared to 65.47 per cent a year ago.
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Corporation bank Q1 result, net profit up


Corporation Bank registered a net profit of ₹103.27 crore in the first quarter of 2019-20 as against a profit of ₹84.96 crore in the corresponding period of the previous fiscal, recording a growth of 21.55 per cent.

The gross NPA (non-performing asset) of the bank stood at 15.44 per cent (17.44 per cent), and net NPA at 5.69 per cent (11.46 per cent) during the period.

The amount of gross NPA came down to ₹20,913.07 crore (₹21,753.21 crore), and net NPA slipped to ₹6,907.51 crore (₹13,333.27 crore) during the first quarter of 2019-20.

The provisions (other than tax) and contingencies stood at ₹729.53 crore (₹1,611.93 crore). Of this, the provisions for NPAs stood at ₹715.98 crore (₹1,508.42 crore) during the quarter.

The bank registered a net interest income of ₹1,298.67 crore (₹1,564.21 crore) and the other income of ₹432.32 crore (₹787.33 crore) during the period.

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Four PSU Banks fined for violation of KYC norms by RBI

The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.75 crore on four public-sector banks, including PNB and UCO Bank, for non-compliance with KYC requirement and norms for opening of current accounts. While PNB, Allahabad Bank and UCO Bank have been fined Rs 50 lakh each, a Rs 25-lakh penalty has been imposed on Corporation Bank.



Giving details, the RBI said the penalty has been imposed for non-compliance with certain provisions of directions issued by it on know your customer norms or anti-money laundering standards and opening of current accounts. The action, however, is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers, the RBI added.




In a stock exchange filing on Tuesday, UCO Bank said, “We inform that the RBI in exercise of powers conferred under Section 47 (A) (1) (c) read with Section section 51 and 46 (4) (1) of the Banking Regulation Act, 1949, has imposed a penalty of Rs 5 million (Rs 50 lakh) on UCO Bank for non-compliance of RBI directives on ‘KYC norms/AML standards/CFT/obligation of banks and financial institutions under PMLA 2002’ and also on ‘opening of current accounts by banks — need for discipline’.”




Similarly, Allahabad Bank, in a stock exchange filing, said the RBI has imposed a penalty of Rs 50 lakh on the bank for non-compliance of the directions issued the by RBI on “KYC norms/AML standards” and “opening of current accounts”.
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Big bank theory: This two PSU Banks may merge into Oriental Banks of Commerce (OBC)

With a heavy mandate to push reforms, the BJP-led government may soon kick-start the next phase of consolidation in the public-sector banking space with an amalgamation of three lenders — Oriental Bank of Commerce (OBC), Indian Bank and Corporation Bank.

Banking sources told FE that OBC has sought the finance ministry’s approval to combine with Indian Bank and Corporation Bank. The ministry will consider OBC’s proposal and take a view soon, one of the sources said. However, there is no formal announcement from the finance ministry on the matter yet. Another source said the government may infuse `40,000-50,000 crore into public-sector banks (PSBs) this fiscal, having already provided `1,06,000 crore in FY19.

The merger, if implemented, will be part of the government's efforts to create a few but strong banks with much larger balance sheet to support the rising credit appetite of the fast-growing economy and enable optimum utilisation of resources.

The successful experience of merging State Bank of India with five of its subsidiaries and Bharatiya Mahila Bank, and the amalgamation of Bank of Baroda, Vijaya Bank and Dena bank have given the government confidence that more such consolidation exercises can be handled without any hiccups.

OBC — which was facing restrictions under the central bank's Prompt Corrective Action (PCA) framework until early February —recorded a net profit of Rs 201.5 crore in the March quarter from a net loss of Rs 1,650.22 crore a year earlier. Even sequentially, the profit surged 39%. However, Corporation Bank's losses zoomed to Rs 6,581.49 crore during the fourth quarter of FY19, against Rs 1,838.39 crore a year before.

Indian Bank saw a net loss of Rs 190 crore in the March quarter, against a net profit of Rs 132 crore in the same period last year. While the headquarters of OBC is in Gurugram, those of Corporation Bank and Indian Bank are in Mangalore and Chennai, respectively.

Earlier, there were reports of Punjab National Bank (PNB) amalgamating with OBC and some other smaller banks, such as Punjab & Sind Bank, Allahabad Bank and Andhra Bank. However, given that PNB is still not out of the woods, any such plan may wait until the bank's results for the first quarter of this fiscal are out. PNB recorded losses of Rs 4,750 crore in the March quarter, against a net loss of Rs 13,417 crore in the same quarter last fiscal when the Nirav Modi fraud came to light. It, however, had recorded a net profit of Rs 247 crore in the third quarter of FY19.

Upon amalgamation, the merged entity will have a combined deposits of `6.6 lakh crore and advances of Rs 4.8 lakh crore, said the sources. The net NPA ratio of OBC stood at 5.93%, while that of Corporation Bank and Indian Bank was 5.71% and 3.75%, respectively at the end of March.
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Corporation bank Q4 loss widens due to higher provisions

Corporation Bank Friday said its loss widened to Rs 6,581.49 crore during the fourth quarter ended March 31, mainly due to higher provisioning for bad loans.

The bank had reported loss of Rs 1,838.39 crore during January-March quarter of 2017-18.

The total income of Corporation Bank during the fourth quarter of 2018-19 stood at Rs 4,187.65 crore down from Rs 4,642.45 crore in the same period of the previous fiscal, the lender said in a regulatory filing.

The bank, however has reported reduction in non-performing assets (NPAs).

The gross NPA as a percentage of total advances was 15.35 per cent compared to 17.35 per cent during fourth quarter of 2017-18.

The bank has made a provision of Rs 8,505.87 crore for NPAs almost double from Rs 4,441.29 crore in the year-ago quarter.


Corporation Bank's net loss stood at Rs 6,325.29 crore during the year 2018-19, as against Rs 4,049.93 crore in the preceding fiscal.
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2 more PSU banks out of RBI’s PCA watch; one private bank also finds its way out

The RBI Tuesday lifted lending curbs on two more public sector banks (PSBs), Allahabad Bank and Corporation Bank, by removing them from its weak-bank watch list. Private sector Dhanlaxmi Bank too has been taken out of the Prompt Corrective Action (PCA) Framework. Earlier on January 31, Bank of India, Bank of Maharashtra and Oriental Bank of Commerce were taken out of the PCA Framework. In a statement, the RBI said the Board for Financial Supervision (BFS) reviewed the performance of banks under PCA and noted that the government has infused fresh capital on February 21 into various banks including some of the banks currently under the PCA framework.

Of these banks, Allahabad Bank and Corporation Bank had received Rs 6,896 crore and Rs 9,086 crore, respectively. Capital infusion, the RBI said, has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with. "Accordingly, based on the principles adopted by the BFS in its earlier meeting dated January 31, 2019, it was decided in the meeting held on February 26, 2019 that Allahabad Bank and Corporation Bank be taken out of the PCA Framework subject to certain conditions and continuous monitoring," RBI said.

The gross non-performing assets of Corporation Bank stood at 17.36 per cent of the gross advances at the end of December quarter of this fiscal, up from 15.92 per cent in the same period of previous fiscal. For Allahabad Bank, the gross NPA rose to 17.81 per cent from 14.38 per cent a year ago. RBI further it has also been decided to take Dhanlaxmi Bank out of the PCA Framework, subject to certain conditions and continuous monitoring, as the bank is found to be not breaching any of the Risk Thresholds of the PCA Framework.


Dhanlaxmi Bank's gross non-performing assets (NPAs) rose to 8.11 per cent of the total advances, from 6.96 per cent at the end of the third quarter of 2017-18. RBI also it will continuously monitor the performance of the banks under various parameters," the central bank said. Five public sector banks -- United Bank of India, UCO Bank, Central Bank of India, Indian Overseas Bank and Dena Bank -- are still remain under PCA framework, which imposes lending restrictions and prevents them from expanding, among other curbs.

The PCA framework was one of the contentious issue between the government and the RBI. The government wanted the central bank to align the PCA framework to the global norms. The PCA framework kicks in when banks breach any of the three key regulatory trigger points -- namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA). Globally, PCA kicks in only when banks slip on a single parameter of capital adequacy ratio, and the government and some of the independent directors of the RBI board, like S Gurumurthy, are in favour of this practice being adopted for the domestic banking sector as well.
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Corporation Bank swings into the black with profit in Q3


Corporation Bank has swung into the black with a profit of Rs 60.53 crore in December quarter 2018, as provisioning for bad loans saw a sharp decline, the lender said Monday. The bank had posted a net loss of Rs 1,240.49 crore in October-December 2017-18.

Total income of the lender came down to Rs 4,112.32 crore in the latest quarter as against Rs 4,841.37 crore in the same period of 2017-18, it said in a regulatory filing.

The bank said its provisioning for non-performing assets (NPAs) or bad loans was reduced to Rs 842.28 crore for the latest quarter as against Rs 2,494.71 crore in the same period a year ago.



However, the bank's assets worsened with gross NPAs growing to 17.36 per cent of gross advances as at December-end 2018, against 15.92 per cent by December 2017.


In value terms, gross NPAs were at Rs 21,921.42 crore as against Rs 21,817.96 crore earlier. Net NPAs surged to 11.47 per cent (Rs 13,521.22 crore) from 10.73 per cent (Rs 13,853.90 crore).

The bank said it is maintaining higher provision in terms of NCLT (list 1 and 2 of RBI) and is holding a total provision of Rs 6,412.45 crore against outstanding amount of Rs 9,075.69 crore (or 70.66 per cent) on these accounts as on December 31, 2018.

Provision coverage ratio of the bank as at December-end 2018 is 66.13 per cent, Corporation Bank said.


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Govt mulls additional capital infusion in five PSU banks

The government is considering additional capital infusion of up to Rs 30,000 crore in public sector banks as they have been unable to raise required funds from the markets, sources said.


As part of the capital infusion plan announced by the Finance Ministry in October 2017, the government envisaged that public sector banks (PSBs) would raise Rs 58,000 crore from the stock markets by March 2019 to meet Basel III norms.

However, due to subdued market conditions, banks have been unable to raise enough funds from the markets so far.

In addition, non-performing assets of many banks have seen a spurt in the first two quarters of this fiscal, putting stress on their bottomlines.

However, the banks have got a breather in respect of Capital Conservation Buffer (CCB), a part of Basel III norms. The RBI, at its last board meeting, deferred the requirement to meet the CCB target by one year, leaving about Rs 37,000 crore in the hands of banks.

Despite this relaxation, PSBs need more funds to meet global capital norms called Basel III as the RBI has retained the capital to risk weighted assets ratio (CRAR) at 9 percent, sources said, adding, the shortfall could be around Rs 30,000 crore.

However, sources said the matter is being considered by the government and the final decision is expected in the next few weeks.

The government had decided to take a massive step to capitalise PSBs in a front-loaded manner, with a view to support credit growth. This entailed mobilisation of capital to the tune of about Rs 2,11,000 crore over the next two years -- through budgetary provisions of Rs 18,139 crore, recapitalisation bonds of Rs 1,35,000 crore, and the balance through raising of capital by banks from the market while diluting government equity estimated at Rs 58,000 crore.


As per this plan, the remaining capital infusion is about Rs 42,000 crore.

Earlier this year, the government pumped in Rs 11,336 crore into five PSBs -- PNB, Allahabad Bank, Indian Overseas Bank, Andhra Bank and Corporation Bank -- to improve their financial health.

PNB, hit by the Nirav Modi scam, got the highest amount of Rs 2,816 crore, while Allahabad Bank received Rs 1,790 crore. Andhra Bank got capital support of Rs 2,019 crore, Indian Overseas Bank Rs 2,157 crore and Corporation Bank Rs 2,555 crore.
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New MD & CEO of Corporation Bank


P V Bharathi has been appointed as managing director and chief executive officer of the Corporation Bank, according to an order issued by the Personnel Ministry on December 24.

Bharathi is at present Executive Director, Canara Bank.

She will take over the charge on or after February 1, 2019 and remain in the post till March 31, 2020 - the date of her superannuation, the order said.


In another order, the ministry said Birupaksha Mishra and Balakrishna Alse S have been appointed as executive director in the Corporation Bank and the Oriental Bank of Commerce, respectively.

Mishra is General Manager, Central Bank of India. Balakrishna is GM, Corporation Bank.

K Ramachandran has been appointed as executive director of the Allahabad Bank. He is at present General Manager, Corporation Bank.


Ramachandaran will hold the office up to the date of his superannuation which is June 30, 2021.

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These banks will be major beneficiaries of Modi govt’s capital infusion

Banks such as the Punjab National Bank, Corporation Bank, Bank of Maharashtra, Allahabad Bank and Bank of India may be major beneficiaries of the government’s enhanced capital infusion plan.
The Modi government has moved to provide additional capital to weak banks after failing to make headway with the Reserve Bank of India over the relaxation of restrictions placed on these banks under the Prompt Corrective Action (PCA) norms.

Finance Minister Arun Jaitley Thursday announced that the government will infuse an additional Rs 41,000 crore of capital into state-run banks, over and above the budgeted amount of Rs 65,000 crore in the fiscal year 2018-19.
With only part of the infusion done so far, more than Rs 83,000 crore of capital will be infused in some state-run banks by the next quarter.
Apart from PNB, the other banks are among the 11 that are under the RBI’s PCA framework. The PNB, hit by the massive Rs 14,000 crore Nirav Modi fraud, has key parameters such as capital adequacy ratio under severe pressure forcing the government to infuse capital to prevent the lender from being pushed into the PCA framework.

Infusion to aid weak banks

The capital is aimed at meeting regulatory capital norms, providing capital to better performing PCA banks to ensure that their key metrics like net NPAs and capital adequacy ratio are well above the regulatory norms so as to facilitate their exit from the framework and to ensure that other banks don’t slip into it, Jaitley said.
Secretary, financial services, Rajiv Kumar said the aim is to help at least four to five banks move out of the PCA framework.
The government contends that the removal of lending restrictions will help in improving the credit flow to important sectors of the economy including the politically important constituency of micro, small and medium enterprises.
The relaxation of the PCA framework has been a major point of difference between the government and the RBI. In its 19 November meeting, the government had argued that the RBI’s PCA framework is far stricter than the global norms.

For instance, RBI takes into account net NPAs as well as negative returns on assets besides capital adequacy to determine if a bank should be placed under the PCA framework, unlike other countries that only look at capital adequacy.
The RBI, however, had defended its stance arguing that restrictions on lending are helping the weak banks strengthen their balance sheet. The matter was eventually referred to the board of financial supervision headed by the governor.
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Corporation Bank reports profit in Q2


Corporation Bank registered a net profit of ₹103.01 crore in the second quarter of 2018-19 as against a loss of ₹1,035.2 crore in the corresponding period of 2017-18.


The bank’s unaudited (reviewed) financial results for the second quarter, which was submitted to the stock exchanges, put the provisions (other than tax and contingencies) at ₹808.32 crore (₹2668.81 crore). Of this, the provisions for non-performing assets (NPAs) were at ₹728.56 crore (₹2535.95 crore) during the period.
Provision coverage ratio of the bank was at 65.47 per cent as on September 30.
The gross NPA increased to ₹21,714.16 crore during the second quarter of 2018-19 from ₹20,684.87 crore in the corresponding period of the previous fiscal. The net NPA stood at ₹13,534.01 crore (₹13,082.59 crore).
In percentage terms, the gross NPA stood at 17.46 per cent (15.28 per cent), and net NPA at 11.65 per cent (10.24 per cent) during the second quarter.
The net interest income of the bank stood at ₹1,457.60 crore during the quarter against ₹1,239.04 crore. The other income came down to ₹246.23 crore (₹718.10 crore).

The bank recorded a net profit of ₹187.97 crore in the first six months of the fiscal 2018-19 as against a loss of ₹975.05 crore in the corresponding period of the previous fiscal.


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Three PSU bank show signs of revival under RBI's PCA watch

The tussle between the Reserve Bank of India (RBI) and the government has reached a level where finding a middle ground looks difficult, if not impossible.
The Centre took the unprecedented call of invoking Section 7 of the RBI Act, 1934 for the first time in history to direct the RBI on issues that are plaguing the Indian economy. One of them is to ease RBI's tight norms on prompt corrective action (PCA) against 12 banks.
RBI and the centre's differences are in relation to the apex bank's handling of weak public sector banks, tight liquidity in the market and resolving bad loans in the power sector. Some reports even claimed that RBI Governor Urjit Patel was considering resigning if the situation worsened.

Till now 12 banks are under the purview of PCA framework. 11 are public sector banks (PSB) and one is a private bank. In 2014, United Bank of India became the first bank to be added to the PCA list. Two more were added in 2015 and eight other under-performing banks in 2017. Recently Allahabad Bank was added to the list in January 2018. Seven out of 12 banks have shown improvement after coming under the RBI's PCA list. In that mainly 3 banks Bank of India(BOI),Corporation bank and OBC bank have seen better to revival from PCA.
Here's how these 12 banks under the PCA list have fared:
Performers :
Corporation Bank
Corporation Bank came under the purview of PCA framework in December, 2017. Corporation Bank has displayed improved performance under the PCA plan. It posted a profit of Rs 84.96 crores in Q1 FY19. Return on assets was at 0.17 per cent, indicating future profit potential. Capital Adequacy Ratio (CAR) as per Basel III norms stood at 8.46 per cent. However it lacked on the non-performing asset front as its NPA saw rise of 0.73 per cent and stood at 11.46 per cent.
Bank of India
PCA framework was implemented on Bank of India in December, 2017. Since then the bank has been able stage a turnaround posting better quarterly results. Profit after tax for June quarter was Rs 95.11 crores, an improvement from the preceding quarter when it posted a loss of Rs 3,969.27 crores. Net NPA stood at 8.45 per cent which has seen a drop of 1.84 per cent since the implementation of PCA. CAR as per Basel III norms stood at 11.43 per cent. Return on assets (ROA) which stood at 0.06 per cent, also displayed growth after being negative for two consecutive quarters (-2.36 in Q4 FY17 and -1.36 in Q3 FY17), indicating increased profitability potential in future.
Allahabad Bank
Allahabad Bank was introduced under the PCA framework in January, 2018. Since then Allahabad bank has shown slight improvement. Its net loss has decreased by 45.6 per cent, net NPA has fallen by 1.81 per cent, and return on assets (ROA) has improved by 44.19 per cent. But, ROA is still negative at -3.22 in the June quarter. CAR as per Basel III norms has reduced to 6.88 per cent.
Oriental Bank of Commerce
The bank was added to the PCA queue in October 2017. Oriental Bank has performed better than most PSBs banks in the PCA framework. It was able to post a profit of Rs 101.74 crores in Q2 FY19 which represents an increase by over 125 per cent since Q1 FY19. Its net NPA stood at just over 10 per cent and CAR as per Basel III norms was at 10.35 per cent. The best part of its performance was that it was able to turnaround its ROA after being in the negative for 7 continuous quarters. As of Q2 FY19, its ROA stood at 0.16 per cent.

Bank of Maharashtra
Bank of Maharashtra came under the PCA purview in June, 2017. Only once in the last six quarters has it been profitable, that too a mere Rs 27 crores in September 2018. CAR as per Basel III norms stood at 9.87 per cent which is a reduction of 1.21 per cent since June 2017. Net NPA witnessed a fall of 1.87 per cent. ROA has made a comeback at 0.07 per cent, which was earlier consistently in negative for straight 10 quarters.
Dhanlaxmi Bank
Dhanlaxmi Bank was introduced under the PCA framework in November 2015. It is the only private sector bank under the purview of RBI's PCA. Since then, its losses have reduced. In FY18 it posted a loss of Rs 24.87 crores which was Rs 241.47 crores in FY15. Its ROA has worsened in FY18 to 0.20 per cent. The bank has adequate CAR of 13.87 per cent as of FY18. The only good thing about Dhanlaxmi Bank is that it has fewer net NPAs as compared to other banks in the PCA list. Its net NPAs stood at only 2.92 per cent as of September 2018.
UCO Bank
PCA framework was implemented on UCO bank in May, 2017 by the RBI. Since then its performance has been more or less the same. Its net loss stood at Rs 633.88 crores in Q1 FY19. Its net NPAs have increased, instead of decreasing, to 12.74 per cent, with CAR at 9.18 per cent. ROA stood weak at -1.1 per cent. ROA of UCO bank has been in the negative since the last 11 quarters.
Under-performers :
Dena Bank
Dena Bank came under the PCA purview in May, 2017. Since then it has consistently underperformed. As per the latest filings available it posted a net loss of Rs 416.7 crores in Q2 FY19.Its net NPAs which stood at 11.7 per cent in Q2 FY19 are also increasing. NPAs have risen by close to 0.5 per cent since it has come under PCA. ROA of Dena Bank is -1.44 per cent. ROA has been negative since the last 3 quarters. CAR stood high a 10.1 per cent for Q2 FY19.
Central Bank of India
Central Bank of India was brought under the PCA framework in June, 2017. It has been a loss making PSU bank since December 2015. As per the June 2018 quarterly result, it posted a loss of Rs 1,522.24 crores. Net NPA is 10.58 per cent and ROA stood at -1.85. ROA has remained negative since the last 11 quarters. Its CAR as per Basel III norms stood at 8.05 per cent.
Indian Overseas Bank
Indian Overseas Bank was added to the PCA queue in August, 2015. It was the second bank that came under the purview of PCA. Since then, its NPAs have been on the higher side. Its net NPA stood tall at 14.34 per cent in Q2 FY19. Its NPAs have been above 13 per cent since the last 10 quarters and it has suffered losses in the last 13 quarters. As of September 2018 its net loss stood at Rs 487.26 crores. ROA, which is a measure of profitability, is also negative for the last 13 quarters and stood at -0.71 per cent in Q2 FY19. CAR as per Basel III norms stood at 9.16 per cent.
United Bank of India
United Bank of India was the first bank to be added to the PCA list in February 2014. Since then it has not been able to improve its performance. Its net NPA which stood at 15.17 per cent in Q2 FY19 is highest among the PSBs. United Bank of India had a negative ROA of 1.08 per cent and CAR of 10.96 per cent in Q1 FY19.

IDBI Bank
RBI added IDBI bank to PCA list in May, 2017. IDBI Bank has probably been the worst in the lot of underperformers. Its net loss has been mounting since December 2017. Net loss for the Q1 FY19 stood at Rs 2,409.89 crores. Non-Performing assets are also consistently rising since the introduction of the PCA framework. IDBI's net NPA stood at a staggering 18.76 per cent. CAR as per Basel III norms stood at 8.18 per cent.
Earlier, in March 2018 Credit Suisse said Punjab National Bank and Andhra Bank could be next additions in the PCA purview.
The PCA framework is implemented if a commercial bank's performance falls below a specified mark. The PCA framework specifies the trigger points or the parameters at which the RBI will intervene with corrective action.
The parameters and their levels, at which corrective action kicks-in are:
  1.  Capital to Risk weighted Asset Ratio (CRAR) below 9 per cent.
  2.  Net Non-Performing Assets (NPA) above 10 per cent.
  3. Return on Assets (RoA) below 0.25 per cent.
  4. Leverage ratio
Some of the structured and discretionary actions that could be implemented by the Reserve Bank against banks under PCA are restrictions on distributing dividends, remitting profits and certain deposits. Besides, there are restrictions on the expansion of branch network, and the lenders need to maintain higher provisions, along with caps on management compensation and directors' fees. The corrective action gets tougher if the financials worsen.

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Corporation bank Q1 profit rises to 41%


Corporation Bank standalone net profit rises 41.25% in the June 2018 quarter

Total Operating Income decline 5.21% to Rs 4190.59 crore.


Net profit of Corporation Bank rose 41.25% to Rs 84.96 crore in the quarter ended June 2018 as against Rs 60.15 crore during the previous quarter ended June 2017. 

Total Operating Income declined 5.21% to Rs 4190.59 crore in the quarter ended June 2018 as against Rs 4420.90 crore during the previous quarter ended June 2017.
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