BoB, PNB among 6 PSU banks with high NPAs

Non Performing asset (NPA) is a loan or advance for which the principal or interest payment has remained overdue for a period of 90 days or more. According to data from Trendlyne, SBI, Bank of Baroda, and PNB are among the 6 PSU banks that reported the highest NPAs in Q3 of FY24. Here's the list:

Bank of India(BoI)

The net NPA of Bank of India stood at 1.41% in Q3FY24, which is the highest among PSU Banks. The PE ratio of the stock is 9.66. Bank of India has a market cap of Rs 61,870 crore.

Union bank of India

Union Bank of India reported a net NPA of 1.08% in Q3FY24. The PE ratio of the stock is 7.74. The firm's market cap is at Rs 1,02,773 crore.

Punjab National Bank (PNB)

Punjab National Bank (PNB) reported a net NPA of 0.96% in Q3FY24. The PE ratio of the stock is at 17.76. Punjab National Bank's market cap is at Rs 1,35,490 crore.

Bank of Baroda(BoB)

The net NPA ratio of Bank of Baroda stood at 0.7% in the December quarter of FY24. The PE ratio of the stock is 7.3. It has a market cap of Rs 1,38,153 crore.

State Bank of India (SBI) 

The net NPA ratio of the State Bank of India (SBI) stood at 0.64% in Q3FY24. The PE ratio of the stock is 10.26. SBI has a market cap of Rs 6,65,731 crore.

Indian Overseas Bank(IOB)

Indian Overseas Bank reported a net NPA of 0.62% in the December quarter of FY24. The PE ratio of the stock is at 50.36, while its market cap is at Rs 1,26,457 crore.

Read More

Union Bank of India Q3 Profit rises 60%

State-owned lender Union Bank of India reported a 60 percent rise in standalone net profit at Rs 3,589.91 crore for the fiscal third quarter. The net profit is in line with Motilal Oswal’s estimate of Rs 3,558.2 crore .

On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.

On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.

This was on back of improved asset quality and increase in net interest income.

The bank's gross non-performing asset (NPA) stood at 4.83 percent, down from 6.38 percent in the September quarter and 7.93 percent in the year-period, the lender said on January 20.

The bank's net NPAs stood at 1.08 percent against 1.30 percent in the pervious quarter and 2.14 percent in Q3FY23.

In absolute terms, the gross NPA of the banks stood at Rs 43,261.88 crore in October-December quarter, as against Rs 54,012.76 crore in a quarter ago period and Rs 63,770.16 crore in a year ago period.

Similarly, net NPA of the lender eased to Rs 9,351.23 crore in a reporting quarter, from Rs 10,471.01 crore in a quarter ago period and Rs 16,195.11 crore in a year ago period.

The net interest income (NII) of the lender in the reported quarter rose just 6.26 percent on-year to Rs 9,168 crore. In July-September quarter, NII stood at Rs 9,126 crore.

The non-interest income of the bank increased 15.29 percent on-year to Rs 3,774 crore. On sequential basis, net non-interest income rose 2.14 percent.

In October-December quarter, net interest margins (NIM) of the bank 3.08 percent, which was down 13 basis points (Bps) on-year and 10 bps on quarter.

One basis point is one hundredth of percentage point.

In a business update earlier this month, the lender reported a 10.67 percent year-on-year (YoY) growth in business at Rs 20.68 lakh crore in the December quarter.

The bank's total advances experienced an 11.44 percent YoY increase, reaching Rs 8.96 lakh crore, while deposits saw a notable 10.09 percent jump to Rs 11.72 lakh crore during Q3FY24.

Retail, Agri and MSME (RAM) segments of the Bank increased by 13.85 percent on-year , where 12.60 percent growth in Retail, 17.88 percent growth in Agriculture and 10.51 percent growth in MSME advances is achieved on a yearly basis.

RAM advances as a percent of Domestic Advances stood at 56.28 percent.

Read More

Latest Bank merger news of PSU banks and PSU Insurance Company

 

A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.

The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.

Read More

Union Bank Of India Q2 Profit Jumps 90%

 

Union Bank of India's profit jumped 90% in the July–September quarter on account of a significant drawdown in provisions.

The public sector lender reported a net profit of Rs 3,511 crore in the second quarter of fiscal 2024 as compared with Rs 1,847 crore over the same period last year, according to an exchange filing on Friday. Analysts polled by Bloomberg pegged its standalone net profit at Rs 3,139 crore.

Sequentially, the bottom line rose 8.5%.

The net interest income increased 10% to Rs 9,126 crore from Rs 8,305 crore in the year-ago period. As on Sept. 30, the net interest margin stood at 3.18%, up 5 basis points from the quarter ended June.

The bank's domestic advances grew 9.2% year-on-year to Rs 8.2 lakh crore during the quarter, propped up by a strong pickup in education and gold loans. However, the absolute share of the two segments in the loan mix was low.

Domestic deposits increased 7.4% to Rs 11.2 lakh crore in the second quarter. As of Sept. 30, the current account and savings account ratio stood at 34.6%.

The bank met the priority sector lending requirements as prescribed by the Reserve Bank of India, under which all banks have to lend 40% of the adjusted net bank credit towards agriculture, micro enterprises and other economically disadvantaged sections.

The share of loans disbursed to women by the bank was exceedingly well above the 5% benchmark set by the RBI under its PSL norms, according to the investor presentation.

The bank's operating expenses rose nearly 12% to Rs 5,600 crore during the reporting period.

Union Bank of India's asset quality improved, with the gross non-performing assets ratio at 6.38% from 7.34% in the previous quarter. The net NPA ratio fell 28 bps to 1.3%, from 1.58% in the first quarter.

While fresh slippages during the quarter amounted to Rs 2,527 crore, accounts worth Rs 984 crore were upgraded. Loans worth Rs 6,018 crore were written off during the period.

Of the total provisions, the amount set aside for bad loans was Rs 1,691 crore during the quarter, nearly 40% lower than what was provided in the same quarter of the previous year.

The bank's provision coverage ratio stood at 92.03% as of Sept. 30. Its capital adequacy ratio was at 16.69%, with CET-1 ratio at 13.05% and tier-II at 2.12%. Out of Rs 10,100 crore approved by the board to be raised this financial year, the bank has already raised Rs 5,000 crore through equity.

Read More

Union Bank Of India Q1 Results: Profit more than Doubles, Provisions Drop

 

Union Bank of India on July 20 reported a more than 107 percent on-year rise in its standalone net profit to Rs 3,236.44 crore in the first quarter of the current financial year.

This is on the back of improvement in the asset quality, lower provisions and increase in net interest income.

In the similar period last year, the state-owned lender reported Rs 1,558.46 crore profit.

On a sequential basis, net profit rose 16.32 percent, Union Bank of India said in an exchange filing.

In the reporting quarter, the net interest income of the lender increased 16.59 percent on-year to Rs 8,840 crore. Similarly, on the sequential basis, it rose 7.14 percent.

While, the non-interest income of the bank rose 38.57 percent on-year in April-June quarter to Rs 3,903 crore. However, it fell sharply over 25 percent on-quarter.

The net interest margins of the bank increased to 3.13 percent in June quarter, which is up 13 basis points (Bps) on-year, and 15 bps on-quarter.

In the similar quarter last year, the state-owned lender reported net interest margins of 3.00 percent. One basis point is one hundredth of percentage point.

Net interest margins is a measure of difference between interest earned by the lender and interest it pays out to its lenders.

Asset quality

In April-June quarter, Union Bank of India reported an improvement in the asset quality, with gross non-performing asset (NPA) ratio improved by 288 bps and net NPA decreased by 173 bps compared to year ago period.

According to the press release, gross NPA of the bank fell to 7.34 percent as on June 30, as compared to 7.53 percent in the previous quarter, and 10.22 percent in a year ago period.

Similarly, net NPA of the bank decreased to 1.58 percent in April-June quarter, as against 1.70 percent quarter ago.

In absolute terms, gross NPA stood at Rs 60,104 crore, down 19.32 percent on-year, and net NPA stood at Rs 12,138 crore, down 45.79 percent, as per press release.

Provision coverage ratio of the bank also increased by 611 bps to 90.86 percent in the reporting quarter.

The total provisions of the bank in first quarter of the current financial year rose marginally by 1.38 percent on-year to Rs 3,943 crore.

Advances & Deposit

The global and domestic advances of the state-owned lender increased 12.33 percent and 11.77 percent on-year, respectively in June quarter.

According to the press release, global advances stood at Rs 8.19 lakh crore and domestic advances stood at 7.94 lakh crore in April-June.

Deposits rose 13.63 percent 0n-year to Rs 11.28 lakh crore.

However, retail term deposit less than Rs 2 crore fell 0.58 percent on-year to Rs 4.36 lakh crore. On sequential basis, it fell 0.43 percent.

Financial inclusion schemes

During the quarter ending June 30, Union Bank of India done new enrollment of 4.63 lakhs Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Similarly, accounts opened by banks under Pradhan Mantri Jan Dhan Yojana (PMJDY) increased 14.06 percent on-year to 2.84 Crores accounts under the Scheme with balance of Rs. 9,002 crore during the quarter ending June 30.

In the corresponding quarter last year, the figure was 2.49 crores account with balance of Rs 7,827 crore.

Under Union Nari Shakti Scheme for Women Entrepreneurs, the bank sanctioned 6,538 applications for Rs 617 crore during Q1 FY24.

In the reporting quarter, the bank sanctioned Rs 10,939 crore towards renewable energy sector and Rs 260 crore towards Union Green Mills.

Read More

Union Bank of India's Q4 net rises 93.3% on healthy growth in NII

Public sector lender Union Bank of India's net profit rose by 93.3 per cent year-on-year (YoY) to Rs 2,782 crore for the quarter ended March 2023 (Q4FY23) on healthy growth in Net Interest Income (NII) and non-interest income.

Sequentially, the profit rose from Rs 2,244 crore in Q3FY23.

For FY23, the bank's net profit grew 61.18 per cent to Rs 8,433 crore against Rs 5,232 crore in FY22.

The board of directors has recommended a dividend of Rs 3.0 per share (Rs 10 each) for FY23, subject to shareholders' approval, the Mumbai-based lender informed BSE.

Its capital adequacy ratio stood at 16.04 per cent with Common Equity Tier of 12.36 per cent at the end of March.

Union Bank’s NII, interest revenues minus interest expenses, grew by 21.9 per cent YoY to Rs 8,251 crore in Q4FY23 as against Rs 6,769 crore for Q4FY22. The net interest margin improved to 2.98 per cent in Q4FY23 from 2.75 per cent in Q4FY22.  

The non-interest income rose by 62.48 per cent YoY to Rs 5,269 crore in Q4FY23, the bank said a statement.

Its advances grew by 13.05 per cent YoY basis to Rs 8.09 trillion in FY23. Out of it, RAM advances – Retail, Agriculture and MSME (RAM)- increased at a higher pace of 14.94 per cent to Rs 4.36 trillion at the end of March 2023.

Total deposits increased by 8.26 per cent YoY to Rs 11.17 trillion. The share of low-cost deposits — current account and saving accounts (CASA) — stood at 35.62 per cent at the end of March 2023, down marginally from 36.54 per cent a year ago.

The asset quality profile improved with gross non-performing assets declining to 7.53 per cent in March from 11.11 per cent in the same month in 2022. The net NPAs also declined 1.7 per cent in March 2023 from 3.68 per cent a year ago. 

The provision coverage ratio improved to 90.34 per cent in March 2023 from 83.61 per cent a year ago.

Read More

Union Bank of India Q1 net profit rises 32% YoY

 

Public-sector lender Union Bank of India’s net profit grew 32 per cent year-on-year (YoY) to Rs 1,558 crore in the quarter ended June (Q1FY23) on the back of a rise in its net interest income (NII).

The Mumbai-based lender had posted a net profit of Rs 1,181 crore during the same period last year (Q1FY22).

Sequentially, its net profit rose 8.19 per cent from Rs 1,440 crore in Q4FY22.

Its net interest income (NII) was up 8.11 per cent in Q1FY23 to Rs 7,582 crore from Rs 7,013 crore in Q1FY22. It increased 12 per cent sequentially from Rs 6,769 crore in the March 2022 quarter.

Its net interest margin (NIM) declined to 3 per cent in Q1FY23 from 3.08 per cent a year ago. However, it improved from 2.75 per cent in March 2022.

A Manimekhalai, managing director, said with the uptick in credit growth, the NIM was expected to improve to 3.1 per cent by March 2023.

Its non-interest income rose by just 1.36 per cent to Rs 2,817 crore in Q1FY23 from Rs 2,779 crore in Q1FY22.

It fell sequentially from Rs 3,243 crore in Q4FY22.

The asset quality profile improved with gross non-performing assets (GNPAs) declining at 10.22 per cent in June 2022 from 13.6 per cent in the year-ago quarter and 11.11 per cent in March 2022.

Net NPAs dipped to 3.31 per cent from 4.69 per cent a year ago and 3.68 per cent in March 2022.

The emphasis will be on recoveries (Rs 15,000 crore) and the bank is looking to reduce GNPAs below 9 per cent and net NPAs below 3 per cent by March 2023, she said.

The provision coverage ratio rose to 84.75 per cent for the quarter under review from 81.43 per cent a year ago and 83.61 per cent in March 2022.

The bank’s loan book grew 12.95 per cent YoY to Rs 7.28 trillion in June 2022 from Rs 6.45 trillion a year ago. Credit is expected to grow 12-13 per cent in FY23 with strong offtake from companies and the retail segment.

Deposits grew 9.27 per cent YoY to Rs 9.92 trillion in June 2022. The share of low-cost deposits -- current accounts and savings accounts (CASA) -- declined to 36.19 per cent in June 2022 from 36.39 per cent a year ago and 36.54 per cent in March 2022. The bank is looking to increase it to 37.8 per cent by March 2023.

The bank’s capital adequacy ratio (CAR) stood at 14.42 per cent in June 2022, up from 13.32 per cent in June 2021.

The bank is planning to raise up to Rs 3,500 crore of equity capital through qualified institutional placement (QIP) in the third quarter of FY23, subject to market conditions.

Read More

Union Bank of India Q4 Results: Firm reports 8% rise in net profit, proposes 19% dividend

  

State-owned Union Bank of India reported an 8.3% year-on-year (YoY) rise in net profit for the quarter ended March 31 backed by robust net interest income.

The net profit for the quarter stood at Rs 1,440 crore against Rs 1,330 crore in the year-ago period.

Net interest margin (NIM), a key profitability ratio, improved 37 basis points to 2.75% in the reporting quarter. Net interest income rose 25.3% at Rs 6,769 crore.

"We endeavour to maintain NIM at around 3%," managing director Rajkiran Rai said.The lender's operating profit rose 11.3% to 5530 crore. Total provision was 12.4% higher at Rs 4,081 crore.

Its asset quality improved with the gross non-performing assets ratio falling to 11.11% at the end of March as compared with 13.74% a year back. The net NPA ratio improved to 3.68% against 4.62%. The capital adequacy ratio stood at 14.52%.

The bank's advances grew 9.6% year-on-year to Rs 7.16 lakh crore while deposits rose 11.75% to Rs 10.3 lakh crore.

"Our guidance is to grow advances by 10-12% this year," Rai said. He said that a 50-100 basis point rise in rates would not impact long-term credit demand although corporates may look for alternate sources for short-term loans.

The bank has Rs 2700 crore exposure to the Future Group and Rs 2492 crore exposure to Srei. Rai said the risks are covered by 58% provision and 86% provision respectively.

Read More