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 Indi

a (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.

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State Bank of India(SBI) Q3 FY24 Net profit falls 35%

 

State Bank of India (SBI) on Saturday reported a net profit of Rs 9,163 crore for Q3 quarter for FY24, which was 35 per cent less than Rs 14,205 crore clocked in the year-ago period.

The public lender though reported a standalone net profit of Rs 40,378 crores for the first nine months of FY24, which was 20.40 per cent up from Rs 33,538 crore in Q3 FY23

The bank said it has earned Rs 105,733.78 crore in interest income in Q3 FY24, which was up 22% from Rs 86,616.04 crore reported in the year-ago period. Of which, the bank paid Rs 66,918 crore in interests in the October-December quarter. The net interest income (NII) of the country's largest bank stood at Rs 39,815 crore, missing estimates of Rs 40,304 crore.

Whole Bank NIM for 9MFY24 decreased by 1 bp YoY to 3.28% while Domestic NIM for 9M FY24 decreased by 8 bps YoY to 3.41%.

The bank's gross non-performing asset (NPA) stood at 2.42%, down from 3.14% recorded in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.64 per cent compared to 0.77 per cent last year. Bank’s returns on assets (RoA) for Q3FY24 stood at 0.62% while for 9MFY24 the RoA and returns on equity (ROE) stood at 0.94% and 19.47% respectively.

Gross NPA ratio at 2.42% improved by 72 bps YoY. Net NPA ratio at 0.64% improved by 13 bps YoY. PCR (Incl. AUCA) stands at 91.49%. Provision Coverage Ratio (PCR) at 74.17% declined by 195 bps YoY. Slippage Ratio for 9MFY24 improved by 5 bps YoY and stands at 0.67%. Slippage Ratio for Q3FY24 increased by 17 bps YoY and stands at 0.58%. Credit Cost for Q3FY24 remained flat YoY at 0.21%.The bank's operating profit for Q3 stood at Rs 20,336 crore.

Credit growth at 14.38% YoY with Domestic Advances growing by 14.47% YoY. Corporate Advances and SME Advances cross Rs 10 lakh crore and Rs 4 lakh crores. respectively. Foreign Offices’ Advances grew by 13.90% YoY. Domestic Advances growth driven by SME Advances (19.24% YoY) followed by Agri Advances which grew by 18.12% YoY. Retail Personal Advances and Corporate loans registered YoY growth of 15.28% and 10.71%, respectively. Whole Bank Deposits grew at 13.02% YoY, out of which CASA Deposit grew by 4.48% YoY. CASA ratio stands at 41.18% as on December 31, 2023.

The decline was as expected by analysts. Kotak Institutional Equities expected operating profit growth to be decline sharply by 18.3 per cent Y-o-Y to Rs 20,613 crore from Rs 25,219.3 crore earned in Q3FY23. 

"We are building net interest margin (NIM) to decline around 7 basis points Q-o-Q/19 bps Y-o-Y, but do see a possibility of stable performance given the structure of loan book and neglibile need for deposits to fund this growth. Operating expenses would be higher due to wage revision related costs (final settlement impact)," Kotak Institutional Equities said in its results preview report.

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State Bank of India(SBI) Q2 Net profit rises 9.13%

State Bank of India (SBI), India's largest lender, on Saturday reported a 9.13% growth in consolidated net profit for the September quarter to ₹16,099.58 crore. It had reported a consolidated net profit of ₹14,752 crore in the year-ago period and ₹18,356 crore in the June quarter.

On a standalone basis, it posted a net profit of ₹14,330.02 crore as against ₹13,264.52 crore in the year-ago period. The net interest income (NII) grew at 12.3% year-on-year.

The bank reported a total income of over ₹1.12 lakh crore for the quarter under review, up from ₹88,733 crore in the year-ago period.

From an asset quality perspective, its gross non-performing assets ratio was at 2.55% as of September 30, an improvement from the 3.52% in the year-ago period and the 2.76% in the first quarter of the current fiscal.

Its overall capital adequacy stood at 14.28% as of September 30.

SBI Chairman Dinesh Khara said, "The outlook for domestic activity is brightening even as corporation de-leverage and post strong bottomlines. The growth is expected to gain momentum for the rest of the year. On external front, CAD is modest with sufficient forex buffers insulating the economy."

Kaitav Shah, Hd-BFSI, Anand Rathi Instl Eq said, "The numbers broadly seem to be in line with what has been the expectation. We just have to look at what kind of growth SBI did. I think they generally deliver in line with what the credit growth for the system has been? NII growth at ₹39,500 crore is very much in line with our expectation. We will just await what is happening at the pre-provisioning operating profit level to get a better view on or a sense on what the numbers have been. We were any which ways expecting a benign asset quality for this quarter."

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State Bank of India(SBI) launches ‘Nation First Transit Card’ for digital fare payments

The State Bank of India, country’s largest lender, has launched the ‘Nation First Transit Card’ facilitate the seamless and convenient customer commuting experience and ensure easy digital ticketing fare payments in metro, buses, water ferries, parking, etc., through a single card.

In addition, individuals can also use this card for making retail and e-commerce payments.

“At SBI, we are constantly strive to make banking and everyday life simpler for our customers. The Nation First Transit Card powered by RuPay and National Common Mobility Card (NCMC) technology, is set to revolutionize the commuting experience and is aligned with the national vision of “One Nation One Card", Dinesh Kumar Khara, chairman, SBI said.

“We are proud to introduce a card that not only eases the lives of our customers but also contributes to the growth of our country," the SBI chairman added.

India’s largest lender said it is also implementing NCMC based ticketing solution in MMRC Metro Line 3 and Agra Metro, which is in the advanced stage of execution and will be available to the public very soon.

SBI entered NCMC programs with transit operators in 2019. As a part of these NCMC programs, SBI successfully launched the “City1 Card", “Nagpur Metro MAHA Card", “MUMBAI1 Card", “GoSmart Card" and “Singara Chennai Card" in Noida Metro, Nagpur Metro, MMRDA Metro Lines 2A & 7, Kanpur Metro and Chennai Metro respectively.

State Bank of India is the largest mortgage lender in the country. The home loan portfolio of the bank has crossed ₹6.53 lakh crore. As of June 2023, the bank has a deposit base of over ₹45.31 lakh crore with CASA ratio of 42.88 per cent and advances of more than ₹33 lakh crore. SBI commands a market share of 33.4% and 19.5% in home loans and auto loans respectively.

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State Bank of India(SBI) Q1 results Net profit all-time high, jumps 178%

State Bank of India (SBI) unveiled its Q1 results today reporting net profit in Q1FY24 zooms 178% to ₹16,884 crore from ₹6,068 crore, YoY. The largest state-run lender in the country net interest income in the quarter ended June 2023 rose 24.5% to ₹38,904 crore from ₹31,195.9 crore, YoY.

The SBI share price commenced at ₹594.90 each, nearly 1% higher on the BSE in anticipation of the Q1 results on Friday. However, it later fell to ₹585.95 at 1:30pm, showing a decrease from the previous day's closing price of ₹590.60.

SBI's net interest margin is 3.47%

SBI's net interest margin, a crucial measure of profitability, climbed to 3.47% from 3.23% compared to the previous year.

The bank witnessed a notable 13.9% rise in its gross loans compared to the previous year, coupled with a 12% increase in deposits, driven particularly by term deposits which offer more favourable returns.

Provisions and contingencies experienced a significant decline of 43% year-on-year, amounting to ₹2,501 crore. This figure marked a decrease from the ₹3,316 crore reported in the January-March period.

SBI's gross non-performing assets (NPA) ratio, a critical measure of asset quality, dropped to 2.76% from the previous quarter's 2.78% and a substantial reduction from 3.91% recorded a year ago. In contrast, the net NPA ratio saw a marginal increase to 0.71% from 0.67% in the preceding three months.

In the preceding quarter, ending March 2023, SBI reported a net profit of ₹16,694.5 crore, indicating an 83% rise from the ₹9,113.5 crore reported during the same period in the previous fiscal year. The net interest income (NII) for Q4FY23 increased by 29.5% YoY, reaching ₹40,392 crore from ₹31,197 crore. The domestic net interest margin (NIM) for Q4FY23 showed a YoY growth of 44 basis points to reach 3.84%. Furthermore, SBI's operating profit in the quarter surged by 24.87% YoY to ₹24,621 crore.

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State Bank of India (SBI) Q4 result: Net profit climbs 83%

 

State Bank of India (SBI) on May 18 reported a standalone profit of Rs 16,694.51 crore for the March quarter, up 83.18 percent from Rs 9,113.53 crore in the same quarter of the previous.

India's largest lender's net interest income came in at Rs 40,392.50 crore, rising 29.5 percent from Rs 31,197 crore in the corresponding quarter of the previous year.

State Bank of India was expected to post a 68 percent rise in profit over the last year, according to a Moneycontrol poll of brokerages. Whereas net interest income (NII) was expected to increase 25.8 percent.

The board of the bank recommended a dividend of Rs 11.30 per equity share for FY23. It will be paid on June 14, 2023, the bank said.

The lender said bank’s return on assets (ROA) and return on equity (ROE) for the financial year 2o23 stood at 0.96 percent and 19.43 percent, respectively. ROA at 1.23 percent for the quarter improved by 49 bps YoY.

Domestic net interest margin (NIM) for Q4FY23 increased by 44 basis points YoY to 3.84 percent.

SBI said its Gross NPA ratio was at 2.78 percent down by 119 bps YoY. Net NPA ratio was at 0.67 percent, down by 35 bps YoY. Provision Coverage Ratio (PCR) was at 76.39 percent, improving by 135 bps YoY. Slippage Ratio for FY23 improved by 34 bps YoY and stood at 0.65 percent, while Slippage Ratio for Q4FY23 was at 0.41 percent.

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State Bank of India (SBI) Q1 results: Net profit dips 6.7%

Beating the street estimates by a huge margins, the State Bank of India (SBI) has reported year-on-year (YoY) dip of 6.7 per cent in net profit to Rs.6,068 crore in Q1FY23 against Rs.6.504 core in Q1FY22. India's largest commercial bank has reported rise in its net interest income (NII) from Rs.27,638 crore in Q1FY22 to ₹31,196 crore in Q1FY23, logging near 12.87 per cent rise on YoY basis. SBI shared these q1 earnings while announcing its Q1FY23 results on Saturday.

While announcing the Q1 results for the financial year 2022-23, SBI has reported Operating Profit for Q1FY23 at Rs.12,753 crores as against Rs. 18,975 crores in Q1FY22, impacted by MTM Losses on investment book.

The MTM hit also had an adverse impact on bank’s ROA and ROE, which stand at 0.48 per cent and 10.09 per cent respectively.

On asset quality front, SBI reported Gross NPA ratio down by 141 bps YoY at 3.91 per cent, while Net NPA ratio down by 77 bps YoY at 1.00 per cent. Provision Coverage Ratio (PCR) improved by 719 bps YoY at 75.05 per cent. PCR (Including AUCA) stands at 90.14 per cent.

Slippage Ratio of SBI for Q1FY23 stands at 1.38 per cent, which is 1.09 per cent better in YoY terms. Credit Cost of the public sector bank for Q1FY23 stands at 0.61 per cent, around 18 bps better than its Credit Cost for Q1FY22.

SBI has reported YoY credit growth to the tune of 14.93 per cent. Its Domestic Advances grew at 13.66 per cent YoY and Foreign Offices’ Advances grew by 22.39 per cent YoY.

SBI's Domestic Advances growth is mainly driven by the Retail Personal Advances (18.58 per cent YoY), out of which Home Loan grew by 13.77 per cent YoY. Corporate Loan book of the PSU bank grew by 10.57 per cent. SME and Agri loans have also registered YoY growth of 10.01 per cent and 9.82 per cent respectively.

“Bank’s Balance Sheet size crosses Rs.50 lakh crores," adding, “Capital Adequacy Ratio (CAR) as at the end of Q1FY23 stands at 13.43 per cent," said SBI while announcing its Q1 results on Saturday.

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SBI net profit rises 41% in Q4 ,misses estimate

 

State Bank  of India on May 13 reported a 41 percent year-on-year rise in net profit at Rs 9,113.5 crore for the quarter ended March 2022 (Q4FY22), which was below Street's estimate of Rs 9,927.6 crore.

SBI's net profit for Q4FY22 was its highest ever but it still underwhelmed the Street as expectations were on the higher side. The bank's shares slipped a little over 1 percent in response to the quarterly results.

The net profit growth was on the back of a 15.3 percent growth in net interest income which stood at Rs 31,198 crore. This too was lower marginally versus analysts' expectations of Rs 31,570 crore.

Non-interest income disappointed, slipping 27 percent year-on-year. But on a sequential basis, non-interest income jumped 37 percent while NII growth was a mere 1.6 percent.

The lender's operating profit was flat year-on-year and showed modest growth of 6.4 percent sequentially. This could be attributed to an increase in operating costs for the bank. The lender expects to reduce some of its costs in the coming quarter, chairman Dinesh Khara said in a press meet post the release of the results.

Notwithstanding the modest operating metrics, the bank's loan book grew at a decent 11 percent. Khara said that the loan book growth is broad based with both retail and corporate showing strong growth. "We should continue to see the loan growth we have seen in the past both in retail and corporate," he said. SBI's retail loan book growth continued to outpace that of its corporate loan book. Retail loans showed a growth of 15.11 percent, driven by home loans while corporate loans showed a growth of 6.3 percent from the year-ago period.

Even as the bank reported an improvement in loan growth, SBI's strong point was its asset quality in Q4FY22.

The lender continued to see sequential improvement in asset quality as the gross non-performing assets ratio declined to 3.97 percent from 4.5 percent in the previous quarter. Similarly, the bank's net NPA ratio fell to 1.02 percent in the reported quarter from 1.34 percent in the previous quarter.

What's more is that fresh slippages were just Rs 2,845 crore for the quarter, down by 12.4 percent from the year-ago period. The bank had guided for the slippage ratio to be brought down to 2 percent and Khara indicated that this would be achieved easily.

When asked about the bank's exposure to troubled accounts such as Future Group, Khara said that all stressed exposures have been adequately provided for. He refrained from detailing the extent of SBI's exposure to troubled accounts.

SBI's restructured loan accounts were roughly Rs 30,000 crore or 1.1 percent of its total loan book. The book is fully provided for, the bank said.

Given the reduced stress, the bank's provisions for the quarter fell 67 percent year-on-year, another boost for profits.

The lender's board also recommended a dividend of Rs 7.1 per share for the financial year ended March 31, 2022.

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