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12 August 2018 largely driven by the complete absorption of MTM losses, as it made investment depreciation provisions of INR71b. Asset quality improved, aided by moderation in fresh slippages and resolution of two NCLT cases. The size of watch-list including SMA-1 & 2, thus, declined to INR246.3b (1.3% of loans; INR289.9b in 4QFY18). aided by asset recovery of INR19.3b via interest income, even as the loan portfolio declined 3% QoQ (~12% QoQ decline in overseas portfolio). Core PPoP grew 12% YoY to INR113b, while the margin improved 44bp YoY to 2.8%. of 14% YoY, while the corporate/mid-corporate segment reported a sequential decline. Management guided for 12% loan CAGR till FY20E. as SBIN recognized INR9.02b of gratuity liability (pending INR18.05b to be provided by 3QFY19) and also made wage provisions of ~INR10b.
SBIN reported loss of Rs48.8bn as bank opted to recognize entire MTM loss of Rs58.9bn on its investment book over amortizing it over 3 quarters. However the bank did amortize provision for gratuity with balance liability of Rs27bn to be spread over next 2 quarters. Domestic loan growth stable at ~7.2% yoy to Rs17.2tn with share of pure retail (mainly mortgages) rising to ~28% against 26% last year. With 11 PSU banks under PCA, SBI...
Punjab National Bank is India's first Swadeshi Bank which commenced operations on 12th April, 1895 from Lahore. Punjab National Bank had a network of 6,983 branches, 9,668 ATM's and 8,044 business correspondents as on Mar-18. The deposits and net...
ff The Bank expects improvement in asset quality led by decline in gross NPA ratio to 6% and net NPA ratio to <3% by FY19-end from current levels of 7.4% and 3.8%, respectively. Maintaining that the worst of NPA recognition is over, the Management expects a substantial...
30 July 2018 BOB reported net profit of INR5.3b (highest in past six quarters) led by lower than expected credit cost. NII grew by 29% YoY on the back of 12% YoY loan growth and 14bp QoQ margin expansion to 2.65%. Total income grew 12% YoY which coupled with controlled opex enabled PPoP growth of 13% YoY at INR30b. Domestic advances grew at robust 19.8% YoY whereas global advances grew by 10% YoY. Domestic loan growth was driven by retail growth of 34% YoY (43% YoY growth in home loans) while domestic corporate portfolio also reported 23% YoY growth. Deposits growth was muted at 2% YoY while CASA ratio stood at 40.8% (Average daily CASA ratio stood at 39.34%). CET-1 ratio stood at 9.27% v/s 9.23% in 4QFY18.
ICICI Securities Ltd | Retail Equity Research PAT came in at | 528 crore vs. loss of ~| 3100 crore in Q4FY18. This was mainly led by strong NII growth of 28.7% YoY to | 4381 crore and lower credit cost of | 2166 crore. Such strong traction in NII was also due to interest reversals and, thus, may not sustain ahead Loans increased 9.77% YoY to | 414517 crore led by domestic loans, which increased 19.84% YoY to | 326400 crore. Contribution of overseas business came down to 20.89% from 22.33% last quarter...
Maintain BUY with a TP of Rs 185 (1.3x Mar-20 ABV of Rs 142). BOBs 1Q show rekindled our faith in its recovery story, ever so slightly. Though slippages (~Rs 47.3bn, 4.5% annu.) were relatively elevated, higher reductions (3x YoY) kept GNPAs under control. Lower provisioning (down ~18% YoY) and tight cost control (up merely 9% YoY) pushed net earnings to a 7-quarter high. The sustained uptick in margins (up 14bps QoQ to 2.65%) was heartening.
BOB reported a steady quarter with earnings of INR 5.3bn driven by healthy recoveries and lower slippages. Specific credit cost declined substantially to 1.8% (annualised), which was the lowest since 3QFY17. Fresh slippages declined to INR 28.6bn (2.8% annualised) and 85% came from the watchlist, which now stands at INR 86bn ( down -INR 14bn QoQ). Non-NPL stress (Watchlist + NFB exposures to NPLs) on BoB's loan book is now at 2.8%. Management remains upbeat on NPL recoveries, with recoveries on two large steel accounts expected to flow through in upcoming quarters. We remain constructive on BoB, given its strong stress recognition (PCR of ~60%), reduction in unprovided residual stress and strong incremental...
