Page 5 - Banking Finance December 2021

BANK UPDATE

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News

Bank of India profit zooms The non-interest income covering fees, close to 26% of Kotak's overall loan
commission, profit from sale of invest- book after the bank cut home loans
100% on low provisions ments and recoveries from written-off rate to 6.5%. Loans sourced digitally

Bank of India's net profit zoomed 99.89 accounts went up by 58.71 per cent doubled from the June quarter.
per cent year-on-year (YoY) to Rs 1,051 YoY to Rs 2,136 crore. It declined se- ICICI Bank posted a 19% growth in its
crore for the second quarter of quentially from Rs 2,320 crore a domestic loan portfolio from the Sep-
Q2FY22 on improvement in non-inter- Q1FY21. tember quarter of the previous fiscal.
est income and fall in the provisions for Its provisions for NPAs declined to Rs
bad loans.
241 crore in Q2 from Rs 2,134 crore in India ready for next orbit
The public sector bank had posted a the year-ago period and Rs 873 crore
net profit of Rs 526 crore in the year- in Q1FY22. The provision coverage ra- of growth
ago quarter. Sequentially, net profit tio was stable at 87.81 per cent in Sep- India is ready to move into the next
was 45.97 per cent from Rs 720 crore tember against 87.91 per cent a year orbit of growth with the hugely suc-
a year ago. ago and 86.17 per cent in June 2021. cessful implementation of the COVID-
However, its net interest income (NII), 19 vaccination program, State Bank of
the interest earnings minus expense, Private sector banks' prof- India (SBI) Chairman Dinesh Kumar
Khara said.
fell 14.32 per cent in the reporting its jump on faster credit
quarter to Rs 3,523 crore in Q2FY22. The credit growth in the economy was
growth quite muted for almost two years, he
In a post results media call, Managing
Director and Chief Executive A K Das Earnings of private sector banks said, expressing hope that the capac-
said the growth in advance was muted jumped 25% from a year ago during the ity utilisation will improve, and help
impacting the interest income. Its ad- fiscal second quarter on faster credit revive investment demand in the cor-
vances rose just 2.7 per cent YoY to Rs growth and as they set aside less porate sector," Khara said at the India
418,895 crore by September 2021, less money to cover potential loan losses. Pavilion at EXPO2020 Dubai.
than over 6 per cent growth of the Loan growth was strong for most banks "The government has done a wonder-
Indian banking system. The bank has on a sequential basis, led by retail loans ful job by continuing its focus on infra-
guided for 6-7 per cent rise in advances and those against properties. Kotak structure investment, which has gone
in FY22 on the back of pick-up in de- Mahindra Bank surprised investors with a long way in terms of giving a push to
mand and credit outreach programme. a 14.7% growth in the loan book in the the core sectors of the economy. And
Its deposits rose by 0.89 per cent YoY September quarter from a year ago with private corporate sectors coming
to Rs 6,12,961 crore in September and 8% sequentially, led by its mort- with the investment, the economy will
2021. Its stock closed 3.48 per cent up gage book. Home loans, along with certainly move to the next orbit of
at Rs 62.5 per share on BSE. loans against property, now constitute development," he added.

BANKING FINANCE | DECEMBER | 2021 | 5