Page 6 - Banking Finance September 2021

BANK UPDATE

loans of banks have declined by Rs Bank of Baroda reports June quarter compared to Rs 510 crore.
61,180 crore to Rs 8.34 lakh crore at Its standalone profit more than doubled
the end of March 31, 2021, as result huge profit to Rs 974.95 crore, aided by lower provi-
of various steps taken by the govern- State-owned Bank of Baroda (BoB) sions and higher other income.
ment, Minister of State for Finance reported a standalone profit of Rs Net interest income was up 8 per cent
Bhagwat K Karad said. 1,208.63 crore during the quarter YoY to Rs 3,564 crore, from Rs 3,309
ended June 2021, helped by decline in
Scheduled commercial banks (SCBs) crore in Q1FY21. Net interest margin
were carrying NPAs worth Rs 8.96 lakh bad loans provisioning. The bank had was at 4.06 per cent, from 4.28 per
posted a net loss of Rs 864 crore in the
crore on their balance sheet at the end cent for Q1FY21, due to lower credit
same quarter a year ago.
of March 2020. offtake and surplus liquidity placed
Total income moderated marginally to under repo with the RBI. Other income
Primarily as a result of transparent
Rs 20,022.42 crore from Rs 20,312.44 was up 18 per cent YoY to Rs 1,788
recognition of stressed assets as NPAs,
crore in the same quarter a year ago, crore and the total income rose 11 per
gross NPAs of SCBs, as per RBI data on
BoB said in a regulatory filing. cent to Rs 5,352 crore.
global operations, rose from Rs
3,23,464 crore as on 31.3.2015, to Rs The bank's asset quality improved with Provisions and contingencies were
the gross non-performing assets (NPAs) down 18.4 per cent YoY to Rs 1,844
10,36,187 crore on 31.3.2018.
falling to 8.86 per cent of the gross crore against Rs 2,258.88 crore. In the
advances as on June 30, 2021, from March quarter, it had provided Rs
IDBI recovers Rs.733 crore 9.39 per cent by the end-June 2020. 1,865.69 crore. It holds standard con-
dues However, net NPA ratio rose to 3.03 tingent provisions of Rs 2,050 crore.
IDBI Bank said that it has recovered Rs per cent from 2.83 per cent as on June Asset quality weakened as gross NPAs
733 crore of dues pertaining to King- 30, 2020, the bank said. rose to 2.88 per cent, up 21 basis
fisher Airlines, which helped the lender As a result, total provisions and contin- points from the March quarter and 35
report a 318% jump in net profit for gencies for the quarter eased to Rs bps from Q1FY21. Net NPAs rose 15
the quarter ended June 2021. 4,111.99 crore from Rs 5,628 crore a bps to 0.84 per cent over Q4.
year ago.
Announcing the first-quarter results, AIBEA urges to exempt
Rakesh Sharma, MD & CEO, said that Provisioning Coverage Ratio including
the bank recovered Rs 278 crore by floating provision stood at 83.14 per PSUs/commercial banks
way of principal and Rs 455 crore by cent as on June 30, 2021. A penalty of Ahead of the LokSabha taking up the
way of interest income aggregating to Rs 41.75 lakh has been imposed on the Deposit Insurance Bill for passage, the
Rs 733 crore in June 2021. bank by Reserve Bank of India for the All India Bank Employees' Association
quarter ended June 30, 2021, it said.
Earlier reported that the Debt Recov- (AIBEA) has urged Finance Minister
ery Tribunal on behalf of SBI-led con- As per the Reserve Bank of India (RBI) NirmalaSitharaman to exempt from its
circular, the bank has opted to provide purview public sector banks and/or
sortium of banks sold shares worth Rs
792 belonging to Vijay Mallya that the liability for frauds over a period of commercial banks, which are covered
were confiscated by the Enforcement four quarters, it said. under Section 45 of the Banking Regu-
Directorate. This was after the consor- Accordingly, the carry forward provision lation Act.
tium of lenders to Kingfisher Airlines as on June 30, 2021 is Rs 349.45 crore Commercial banks pay about Rs.
recovered Rs 5,824 crore and Rs 1,357 which is to be amortised in the subse- 12,000 crore of premium to the De-
crore in two different occasions by sell- quent quarters by the bank, it said. posit Insurance and Credit Guarantee
ing Mallya's shares, which was a signifi- Induslnd Bank's net profit Corporation (DICGC), which is an un-
cant chunk of their total claim of Rs warranted expenditure as it would
9,900 crore from Mallya. doubles otherwise have gone to the banks'

IDBI Bank reported a net profit of Rs Private sector lender Ind-usInd Bank's profit, CH Venkatachalam, general sec-
603 crore for the quarter ended June consolidated net profit almost doubled retary, AIBEA, said in a letter to the
2021. year-on-year (YoY) to Rs 1,016 crore in the Finance Minister.

6 | 2021 | SEPTEMBER | BANKING FINANCE