Allahabad Bank expects to make profit from this FY
The Kolkata headquartered Allahabad Bank expects to turn around from the beginning of this FY 19. The MD and CEO of the bank S S Mallikarjun said that considering some indicators the bank has achieved good performance in the just ended FY. Some of the indicators are CASA growth (second best in the country), cost of deposit, operating profit, net interest margin and growth of retail credit. Although the bank posted a net loss of Rs. 3834 in the Q4 (last quarters of FY19) it expected to come out of PCA (Prompt Corrective Action) soon.
The bank has targeted to have loan growth of 9% in the present fiscal. But there are some challenges.
One is a considerable portion of deposits is disbursed to NBFCs. But after the IL&FS episode and when more NBFCs are expected to default on loans, the banks will have to be more cautious to give loans to NBFCs. This means scope of disbursing loans will be restricted in the present fiscal. But Mallikarjun told BE that it was true that we had to consider the rating of the NBFCs before disbursing loans to them. But we have enough scope to disburse loans. There is not dearth of liquidity in the bank and at the same time demand for loan is not limited. The bank is also going to raise Rs. 1200 crore in this FY20 through Qualified Institutional Placement (QIP).
SBI reports profit in Q4
The largest bank of the country, State Bank of India (SBI) reported a net profit of Rs. 838 crore in the last quarter of FY 19. In the same period of FY18 the bank had a net loss of Rs. 6,547 crore. The bank has reported improvement in many heads like fee income including loan processing charges, commission on government business, letter of credit, bank guarantee and remittance and collection. The total collection on these heads was up by 2%.
For the full year ended last March, SBI reported a net profit of Rs. 862 crore against a net loss of Rs. 6,547 crore in FY 18. The bank reported a net decline of Rs. 15,015 crore in gross NPAs against a net increase of Rs. 24,286 crore in a year ago period. Rajnish Kumar, chairman of the bank reportedly said that the balance sheet of the bank had been fully repaired. The impact of the shadow of the past would not be there on the earnings of the bank.
Syndicate Bank reports Net Profit of Rs. 128 crore in Q4 FY
Syndicate Bank has reported a profit of Rs. 128 crore in the Q4 of last FY19. In the last quarter of FY18, the bank posted a loss of Rs. 2195 crore. This improvement had been possible due to lower provision and improvement in income. Some of the indicators of the bank show that CASA grew by 36.77%. The Net Interest Income (NII) has improved by 16% to Rs. 1952 Crore in Q4 FY 19. Gross NPA ratio stood at 11.37%. Net NPA ratio stood at 6.16% as on 31.03.2019 improved from 6.75% as on 31.12.2018. Provision Coverage ratio has improved to 66.43%v as on March 2019. The Operating Profit for Q4 FY19 stood at Rs. 1057 crore. The Bank reportedly said that it had restructured 4,340 MSME accounts and treated them as standard assets amounting to Rs. 137.87crore during the Q4.