Equitas Small Finance Bank’s PAT down 3% in Q3

Equitas Small Finance Bank on Friday reported a profit after tax (PAT) of Rs 108 crore for the third quarter, compared with Rs 111 crore in the year-ago period, registering a decline of 2.7%. Total income of the bank was slightly higher at Rs 1,035 crore, compared with Rs 1, 012 crore.

PN Vasudevan, MD & CEO, said: “The business environment is slowly but surely coming back to normal. The third wave of Covid is a matter of concern, but at this point in time, we see that normal life has not been impacted much due to this. Our flagship product, small business loans, remains resilient and affordable housing loans and new commercial vehicle loans are primed for growth in the coming quarters.”

Advances as of Q3 stood at Rs 19,687 crore and marked a growth of 13% y-o-y, while 81% of advances have been secured loans. The bank reported quarterly disbursement of Rs 2,861 crore.

On the liability front, deposits, excluding CD, were at Rs 17,884 crore. CASA stood at Rs 9,085 crore, accounting for 50.80% of total deposits.

Vasudevan said: “Deposits continue to perform well and during the quarter the bank has been able to significantly improve its retail focus and moderate the excess liquidity. An over 50%, the CASA ratio is something we would be focusing to retain going forward.”

As of December 31, 2021, the total CRAR was at 21.91%, with tier-I CRAR at 20.66% and tier II CRAR at 1.25%. Net interest income for the quarter was at Rs 541 crore as against Rs 484 crore. The NIM stood at 9.09%.

Gross NPA was at 4.39%, compared with 4.64% in Q2FY22 and 4.16% in Q3FY21. Net NPA stood at 2.38% in Q3FY22, compared with 2.37% in Q2FY22 and 1.71% in Q3FY21. The provision coverage ratio stood at 46.81%.

from Banking & Finance – The Financial Express https://ift.tt/3AIZuO4

Read more »

Shriram City PAT up 5% to Rs 293 crore; Q3 witnesses best ever disbursements

Shriram City Union Finance, part of the Shriram Group, on Friday reported standalone profit after tax (PAT) of Rs 293 crore in Q3FY22, close to 5% higher than Rs 280 crore in the same quarter last year. Total income stood at Rs 1,702 crore as against Rs 1,439 crore in the year-ago period, logging an increase of 18%.

Shriram City reported its best-ever disbursements at Rs 7,630 crore, up 23% y-o-y and 19% sequentially, while AUM rose 13% y-o-y to Rs 32,247 crore. Collection efficiency stood at 103% in the quarter. Asset quality continued to show improvement sequentially, with gross stage 3 levels at 6.61% (6.86% in Q2FY22), while restructured book stood at Rs 315 crore, representing less than 1% of AUM. The company has liquidity back-up of Rs 5,027 crore as of the end of Q3FY22.

YS Chakravarti, MD & CEO, Shriram City, said: “The last two quarters we have witnessed a strong revival in pent-up demand from the ‘Aam Aadmi’, who has been the hardest hit by the pandemic. MSMEs had faced stress in the last two years, but things are slowly turning around and businesses are on the road to recovery. The Union Budget 2022 is also likely to lay emphasis on rural and MSMEs schemes along with environment-friendly policies and that benefit will trickle in, in FY23.”

He said the company has partnered with EV manufacturers and has a focused strategy to grow that segment.

The company’s subsidiary, Shriram Housing Finance, had a stellar quarter, with AUM growing 47% driven by the widening distribution network in south India, and with affordable housing taking centre stage in the housing finance landscape. Shriram Housing Finance is well placed to capture the underpenetrated small ticket housing loan segment to grow its AUM to Rs 10,000 crore by FY24, he said.

The merger with Shriram Transport Finance Company is expected to be completed in 2022.

SME loans contributed 45% of the total AUM and 26% of the disbursement at Shriram City in Q3FY22. The company saw strong loan disbursements sequentially in two-wheeler loans, which contributed 29% of total disbursals. It has expanded its gold loans business in north India. Gold disbursals contributed 22%, while personal loans, showing a strong rise year-on-year, contributed 15% of the disbursements, said a company release.

from Banking & Finance – The Financial Express https://ift.tt/3GnLI4F

Read more »

Bad bank takes off, to get Rs 50,000cr of NPAs in FY22

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/3rc2cbK

Read more »

Kotak Mahindra Bank posts 15% rise in Q3 net profit to Rs 2,131 crore

Kotak Mahindra Bank on Friday reported a 15% year-on-year rise in its net profit for the quarter ended December at Rs 2,131 crore, on account of steady net interest income (NII) growth and write-back of provisions. On a consolidated basis, the bank’s bottomline rose 31% on year to Rs 3,403 crore.

During October-December, Kotak Mahindra Bank’s NII (the difference between interest earned and expended) grew 12% on year to Rs 4,334 crore. The bank’s net interest margin grew to 4.62% in the reporting quarter from 4.36% a year ago.

Total advances stood at Rs 2.52 lakh crore as of December-end, up 18% on year and 8% on a sequential basis. Home loans and loans against property accounted for 25% of the bank’s total customer assets and grew 38% on a yearly basis, while corporate banking advances rose 8% on year to Rs 68,095 crore.

Further, the bank’s deposits rose 15% on year to Rs 3.05 lakh crore as on December 31. The bank’s low-cost current account and savings account ratio stood at 59.9% as of December-end, higher than 58.9% a year ago.

On the asset quality front, Kotak Mahindra Bank’s gross non-performing asset ratio (GNPA) improved to 2.71% as of December-end from 3.27% a year ago and 3.19% last quarter. Net non-performing asset ratio stood at 0.79% as on December 31, lower than 1.24% a year ago and 1.06% as of September-end. The bank saw fresh slippages of Rs 750 crore and recoveries and upgrades of Rs 1,086 crore in the reporting quarter.

During October-December, Kotak Mahindra Bank wrote back Covid-19 provisions amounting to Rs 131 crore as against Rs 424 crore of provisions made during the previous year. The lender continues to hold Rs 1,000 crore of more Covid-19 related provisions on its book and as of December-end, its total provisions including specific, standard and Covid-19 provisions stood at Rs 7,269 crore. The bank’s capital adequacy ratio stood at 23.3% as of December-end, of which tier-I capital stood at 22.4%.

from Banking & Finance – The Financial Express https://ift.tt/3HdEQaW

Read more »

Banks to transfer 15 accounts worth Rs 50,000 crore to NARCL in FY22

The two arms of India’s bad bank – National Asset Reconstruction Company (NARCL) and India Debt Resolution Company (IDRCL) – have received all the requisite approvals, including from the Reserve Bank of India (RBI), State Bank of India (SBI) chairman Dinesh Khara said on Friday. The banking sector will transfer 15 assets worth Rs 50,000 crore to NARCL in FY22, he said.

NARCL will acquire and aggregate the identified non-performing asset (NPA) accounts from the banks, while the IDRCL, under an exclusive arrangement, will handle the debt resolution process. “This exclusive arrangement will be as per the scope defined in the debt management agreement being executed between the two entities. The arrangement will be on the principal-agent basis and final approval and ownership for the resolution will lie with NARCL as the principal,” Khara said.

A total of 38 accounts aggregating to Rs 82,845 crore have been identified for transfer to NARCL. Transfers will happen in a phased manner, with a Rs 50,000-crore tranche getting transferred in the first phase. NARCL will try to identify and acquire assets on a 15:85 cash-cum-security receipts (SR) structure, with government-backed SRs being issued in favour of transferring lenders.

After the Budget for FY22 formulated the dual structure for the bad bank and banks set up the institution, the process got delayed as the RBI expressed its reservations about the structure. Earlier this month, banks put forward a proposal for a revised structure involving a principal-agent relationship between NARCL and IDRCL.

Public sector banks have taken a majority stake in NARCL, while IDRCL will majorly be owned by private banks.

“IDRCL is expected to bring in superior resolution techniques, preserve the value and showcase the brownfield assets and attract domestic as well as foreign investors and also AIFs (alternative investment funds),” Khara said, adding, “This will maximise value for all stakeholders. It is also expected to free the bandwidth as well as capital for lending bankers, which can be put to more gainful use.”

Both the companies have their respective boards in place, Khara said. SBI chief general manager from the stressed assets vertical Padmakumar Nair will be the chief executive for NARCL and SBI Mutual Fund’s EVP for AIFs Manish Makharia will head IDRCL.

While banks had initially identified assets worth Rs 2 lakh crore on the basis of the Rs 500-crore cut-off for resolution by the bad bank, a few accounts from the original universe have been resolved over the past one year. The remaining set of unresolved accounts for which joint lenders’ forum has met and taken a decision to transfer to NARCL involves a total exposure of Rs 83,000 crore. For these remaining accounts, the process of transfer is still on in a phased manner and will be completed over the next year.

Khara explained that while acquiring assets, NARCL will receive inputs on valuation and related matters from IDRCL. Thereafter, banks will need to hold a Swiss challenge auction. “Once all that process is over, NARCL will be giving the quote to the banking system. That is when the asset gets transferred from the banking system to NARCL,” Khara said. The assets will then be passed on to IDRCL, and it, in turn, will start the process for resolution.

from Banking & Finance – The Financial Express https://ift.tt/3u8bXJG

Read more »

RBI imposes restrictions on Indian Mercantile Cooperative Bank Ltd, Lucknow; withdrawals capped at Rs 1 lakh

In a statement, RBI said the Lucknow-based co-operative bank will not, without its prior approval, grant or renew any loans and advances, or make any investment.

from Banking/Finance-Industry-Economic Times https://ift.tt/340kJ1M

Read more »

Sensex tanks 581 points as Federal Reserve signals rate hike

A statement by Jerome Powell, chairman of the US central bank, the Federal Reserve, roiled markets around the world after he clearly indicated on Wednesday evening that the Fed would hike rates in March, ending a nearly two-year old market support programme through near-zero interest rate and buying of bonds from markets.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/33XG2B4

Read more »

Changes you need to make in your financial plan once you become a new parent

It is easy to increase your budget by cutting down your investments and savings, but that is not the best way to do it. Cutting down your investments and saving can jeopardize your financial future.

from Banking/Finance-Industry-Economic Times https://ift.tt/3IFYlcO

Read more »

ToneTag and Elocity partner to bring sound-based payment technology for EV sector

from The HinduBusinessLine - Money & Banking https://ift.tt/3rWj70N

Read more »

Future Enterprises to sell 25 per cent stake in general insurance JV to Generali for ₹1,253 cr

from The HinduBusinessLine - Money & Banking https://ift.tt/3IJAV62

Read more »

Future to sell 25% of Future Generali to JV partner Generali Group for Rs 1,252 crore

“Future Enterprises progresses on its plans to monetise its investment in its insurance joint ventures with Generali, agrees to sell 25% equity in the general insurance JV,” Future Enterprises Ltd said in a filing to the stock exchanges.

from Banking/Finance-Industry-Economic Times https://ift.tt/35st6DI

Read more »

Future Enterprises to sell 25% stake in general insurance JV to partner Generali for ₹1,253 cr

from The HinduBusinessLine - Money & Banking https://ift.tt/3HaHq1x

Read more »

As broadband quality improves, LinkedIn shuts down Lite version

from The HinduBusinessLine - Money & Banking https://ift.tt/3r2Xrks

Read more »

Future Enterprises to sell 25 pc stake in general insurance JV to partner Generali for Rs 1,253 Cr

"FEL has agreed to sell a 25 per cent stake in its General Insurance Joint Venture, FGIICL, to its Joint Venture partner Generali for a cash consideration of Rs 1,252.96 crore, plus an additional consideration that is linked to the date of the closing of the transaction," the regulatory filing by the Future Group firm said.

from Banking/Finance-Industry-Economic Times https://ift.tt/3AxMVoA

Read more »

Need of the hour: Social media an absolute must for banks

The need to have a physical presence across the length and breadth of the country has been long felt by public sector banks, especially to fulfill their role in the country’s economic development. This was the driving force for the establishment of State Bank of India which was followed later by nationalisation of the banks. The 20,000-plus branches of SBI as well as other banks in the country have undoubtedly provided the much-needed impetus for rural development and easy access to banking services to millions of people in the country.

Today, with the increasing momentum for digital banking and other digital financial services, customers have an array of options to choose from. So the big question is how do banks build and maintain relationships with customers, specially when they are not expected to visit the branches as often as the previous generation did?

Social media is the most important channel which could provide the much-required conduit for building customer relationship for banks. As individual customers, most of us are familiar with the use of social media as a mode of communication as well as for relationship building. However, using social media for business or banking is still a novel phenomenon. The huge potential for offering customer solutions, creating brand awareness, expanding customer base and building ongoing personal connect are some of the invaluable advantages that social media strategy could offer for the banks. With fintech companies being able to offer innovative digital value propositions and their ability to develop a better understanding of customer buying processes by engaging with them through social media platforms, traditional banks are beginning to realise the urgency for rethinking their customer relationship strategies. The new format of building connections with customers and being able to address their queries swiftly by following them on social media, stronger and long-lasting relationships are now feasible.

From contests to financial education related content in the form of blogs and videos, some of the banks are moving away from their serious image to acquiring an easily accessible persona. Banks have used the social media platform for rewarding and recognising colleagues and customers who are making impactful changes in the communities specially during the pandemic. Such initiatives would create a positive image for the bank and help in spreading a good feeling within the community they serve. Further, social media presence would enable banks to tap into new data sources and provide insights for how to engage with their customers according to their location, age, gender or other characteristics and make targeted marketing possible. Instead of presenting the dry facts of their products, banks could present human interest stories and case studies which will pave the way for building trust and emotional connect.

Banks could create loyalty programmes and create brand ambassadors who could popularise their offerings on social media. It is not just the potential of social media to enable the customisation of the offerings for individuals, banks could also focus on specific interest groups such as seniors, women or farmers who have their identities on social media platform. Adding to the enormous data that banks already possess, further data through transactions on social media could open up new possibilities not only for product options but also for servicing options as well. While social media is an important channel for building the trust quotient, it is necessary to ensure that customer experience is seamless, whichever channel is used.

The writer is chairperson, Global Talent Track, a corporate training solutions company

from Banking & Finance – The Financial Express https://ift.tt/3Hkode5

Read more »

Nagpur: 7 cheated of ₹4.68 crore by cryptocurrency fraudsters

from The HinduBusinessLine - Money & Banking https://ift.tt/3fVxs8r

Read more »

Banks' plea seeking time for borrowers to comply with new loan recast plan rejected

In August 2021, the regulator had extended the deadline for stressed companies to meet the parameters related to operational performance to October 2022.

from Banking/Finance-Industry-Economic Times https://ift.tt/3rOZub2

Read more »

Bankers reject Religare's debt rejig proposal

The plan proposed by Religare Finvest management needed an infusion of Rs 700 crore of fresh loans from lenders over a period of two and a half years. Bankers are reluctant because the account is classified as a non performing asset (NPA).

from Banking/Finance-Industry-Economic Times https://ift.tt/3rNHbTz

Read more »

Mauritius-based PEs on taxman's radar, at least 7 get notices

If the income tax (I-T) department has good reasons to believe that a fund's 'place of effective management' (or POEM in tax parlance) is somewhere else-where the key decision makers are located -and not Mauritius, many funds could find themselves exposed to large tax demands.

from Banking/Finance-Industry-Economic Times https://ift.tt/3G2HMpN

Read more »

Government approves PMC Bank amalgamation plan

“The scheme of amalgamation envisages takeover of the assets and liabilities of PMC Bank, including deposits, by the USFBL in terms of the provisions of the scheme,” the Reserve Bank of India said citing the government's sanction on the amalgamation plan.

from Banking/Finance-Industry-Economic Times https://ift.tt/3IBtzBD

Read more »

Monetary penalties on UCBs: Fix the responsibility on erring officers, says Satish Marathe, RBI Director

from The HinduBusinessLine - Money & Banking https://ift.tt/3FZ0VZq

Read more »

Microloan securitisation volume see recovery in 9MFY22: ICRA

from The HinduBusinessLine - Money & Banking https://ift.tt/3u1j8TU

Read more »

MODIFI acquires Seawise Capital’s trade finance and SaaS business in India

from The HinduBusinessLine - Money & Banking https://ift.tt/3KGYLBl

Read more »

Hero Fincorp to raise Rs 2,000 cr for growth

Hero Fincorp has initiated a valuation exercise before the equity funding round will be finalised. The final contributions of the existing and new investors could change based on the valuation report, according to people cited.

from Banking/Finance-Industry-Economic Times https://ift.tt/3H1zBLt

Read more »

Why central banks oppose crypto but explore own digital currencies

Digital payments like UPI are electronic instructions that authorise intermediaries such as banks to facilitate transactions. Even if they are ‘cashless’ modes of payment, they involve transfer of fiat money. Now imagine a UPI-like system where digital currency issued by a central bank is transacted instead of bank balances. The need for interbank settlement disappears and you can pay someone securely, without third-party risks. What if money itself could be ‘digital’?

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/3ICfWCu

Read more »

PSU Bad bank, ARC reforms are awaited as NPA threat looms

Even as the wait goes on for the National Asset Reconstruction Company (NARC), or 'bad bank', which was announced in the previous Union Budget and proposed reforms for the private asset reconstruction companies (ARCs) to take off, the dead weight of old accounts continues to languish on the banks' books.

from Banking/Finance-Industry-Economic Times https://ift.tt/3fRfNyt

Read more »

Fullerton India and Paytm tie up to provide lending products

from The HinduBusinessLine - Money & Banking https://ift.tt/3nUh5gJ

Read more »

FSS-assisted model through 'Smart Cash' to reach 1000 villages by March

India has about 200,000 villages with a population of more than 2000 people. The company is focused on targeting this demographic through an assisted model that consists of business champions who are present in 100 villages and smart cash kiosks that are present in 10 villages.

from Banking/Finance-Industry-Economic Times https://ift.tt/3FP2oBC

Read more »

Uncertainty over privatisation of PSBs, general insurance company

from The HinduBusinessLine - Money & Banking https://ift.tt/3AqHU0R

Read more »

JM Financial Asset Reconstruction Company allowed to substitute Bank of India as petitioner

BSE-listed National Steel & Agro owes about Rs 1,600 crore to its lenders. On Friday, the Mumbai bench of the National Company Law Tribunal, presided over by Justice Pradeep Narhari Deshmukh, allowed the substitution of JM Financial ARC, to whom the lenders have assigned their debt as petitioner in an oral order and have posted the hearing of the matter to March 9.

from Banking/Finance-Industry-Economic Times https://ift.tt/3u8H9J1

Read more »

PSU bad bank, reforms for asset rejig cos hang fire

Banks have come out of the bad loan mess through provisions made from profits and new capital. However, the deadweight of these old accounts continues to be on their books as the National Asset Reconstruction Company (NARC) or ‘bad bank’ announced in last year’s Budget is yet to take off and some proposed reforms for private asset reconstruction companies (ARCs) are still pending.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/3tQdBj5

Read more »

Digital payment sector wants MDR to be back

The Payments Council of India (PCI), the industry body for the digital payments ecosystem in the country, has written to the government urging it to roll back the zero MDR regime for UPI and Rupay debit cards transactions.

from Banking/Finance-Industry-Economic Times https://ift.tt/3GTBERK

Read more »

HDFC Cap announces initial close of $1.88 b of affordable housing fund

from The HinduBusinessLine - Money & Banking https://ift.tt/3404e5B

Read more »

HDFC Capital achieves initial close of $1.8-billion fund for affordable housing financing

from The HinduBusinessLine - Money & Banking https://ift.tt/3AoeMYj

Read more »

NCLAT directs NCLT to decide over SREI's plea against rights issue of Trinity Alternative Investment

A two-member NCLAT bench, while disposing of SREI Infrastructure Finance Ltd (SIFL) petition observed that the National Company Law Tribunal (NCLT) has ordered a status quo and is yet to pass any order over the plea filed by the non-banking financial company.

from Banking/Finance-Industry-Economic Times https://ift.tt/3fPKKDh

Read more »

ICICI Bank Q3 profit rises 25%

Private-sector lender ICICI Bank on Saturday reported a 25.4% year-on-year (y-o-y) rise in standalone net profit to Rs 6,193.81 crore in the December quarter of FY22 on the back of a 23.4% y-o-y rise in net interest income (NII) to Rs 12,236 crore. The net interest margin (NIM) – a key measure of profitability – stood at 3.96%, down four basis points (bps) from 4% in the previous quarter. 

ICICI Bank’s total advances increased 16% y-o-y to Rs 8.14 lakh crore. The retail loan portfolio grew 19% y-o-y and constituted 61.3% of the total loan portfolio as on December 31, 2021. The domestic wholesale banking portfolio grew 13% y-o-y. Total deposits increased 16% y-o-y to Rs 10.17  lakh crore and the bank’s average current account savings account (CASA) ratio stood at 44.9%, up from 41.8% a year ago. Term deposits increased 12% to Rs 5.37 lakh crore. 

The bank’s management said it does not see the ongoing third wave of the pandemic as a threat. Sandeep Batra, executive director at the bank, said as things stand, the third wave may have created local disruptions. “We do not anticipate, at this point of time, any significant economic disruptions to the portfolio that we have. Anyway, from our perspective, we have a Covid provision which is about Rs 6,400 crore, which we have not released during the quarter. We will just wait for the third wave to probably subside,” Batra said.

Provisions fell 27% y-o-y to Rs 2,007 crore. The total fund based outstanding to all borrower accounts undergoing resolution under various regulatory schemes stood at Rs 9,684 crore, or 1.2% of total advances as on December 31, 2021, a similar level compared to September 30, 2021. The bank held provisions amounting to Rs 2,436 crore against these borrowers under resolution, as of December 31, 2021.

Additions to gross non-performing assets (NPA) fell to Rs 4,018 crore in the December quarter from Rs 5,578 crore in the September quarter. Retail slippages were at Rs 3,853 crore and that for corporate and small and medium enterprises (SMEs) stood at Rs 165 crore. ICICI Bank’s gross NPA ratio at the end of December stood at 4.13%, 69 bps lower than 4.82% at the end of September, while the net NPA ratio decreased 14 bps sequentially to 0.85%. 

Batra said the bank made recoveries worth Rs 4,200 crore in Q3. “Amongst this Rs 4,200 crore, most of the recoveries have been from the retail side. We had about Rs 3,700 crore of recoveries from retail and about Rs 482 crore from the corporate and SME book,” he said.

The bank’s total capital adequacy as on December 31, 2021 was 19.79% and the tier-1 capital adequacy was 18.81%, compared to the minimum regulatory requirements of 11.7% and 9.7%, respectively. ICICI Bank shares on the BSE closed at Rs 804.60 on Friday, down 0.66% from their previous close.

from Banking & Finance – The Financial Express https://ift.tt/33IufGv

Read more »

Q3 Result: YES Bank PAT rises 77% to Rs 266 cr on back of lower provisions

Private sector lender YES Bank on Saturday reported a 77% year-on-year increase in its net profit at Rs 266 crore during the October-December (Q3 and 18% sequentially, primarily on the back of lower provisions. The private lender’s advances, however, grew at a tepid pace of 4% on a y-o-y basis.

For the quarter ended December, YES Bank’s gross advances stood at Rs 1.76 lakh crore, up mere 2% on quarter and 3.8% on year. Retail advances formed 57% of the bank’s loan portfolio while corporate loans accounted for the remaining 43%. The growth in advances is lower than industry average of 7.1% y-o-y and lower than the bank’s earlier guidance of over 15% on-year growth in advances for the current fiscal.

Speaking at the post earnings conference, YES Bank managing director and chief executive office Prashant Kumar said the lower credit growth was because of the bank’s strategy of “debulking” of the large corporate loan as well as ample system liquidity for corporates. Because of the same, the bank will deliver 10% y-o-y credit growth in the current fiscal, he said.

Owing to a muted growth in advances, YES Bank’s net interest income (NII) — difference between interest earned and interest expended — fell 31% on year to Rs 1,764 crore. On a sequential basis, the NII was higher 17%. Net interest margin (NIM), on the hand, stood at 2.4% in Q3, lower than 3.4% last year.

On the liabilities side, YES Bank reported a strong 26% on year growth with total deposits standing at Rs 1.84 lakh crore as on December-end. The low-cost current account and savings account ratio (CASA) also improved to 30.4% as on December-end from 29.4% last quarter.

Further, YES Bank’s Q3 bottom line was boosted majorly by a fall in provisions. For the quarter ended December, the lender’s total provisions fell 82% on a yearly basis and 0.7% on a quarterly basis to Rs 375 crore. The provision coverage ratio stood at 79.3% as on December-end.

The bank’s asset quality improved in the reporting quarter with gross non-performing asset ratio (GNPA) falling to 14.47% as on December end as against 15% and 15.4% as on September-end and corresponding period last year, respectively. The net NPA ratio, too, improved to 5.3% as on December 31 from 5.5% as on September-end. Fresh slippages during the reporting quarter were at Rs 978 crore, lower than Rs 1,783 crore in July-September.

“We expect asset quality to continue to improve in the coming times. The process to form the ARC (asset reconstruction company) and complete the transfer of negative stress book (NPAs) is on track and we expect to complete this exercise by March 2022 or latest in the fist quarter of the next financial year,” Kumar told reporters.

He added that the bank has shortlisted four potential foreign investors for investment in ARC and that all parties are presently engaged in the due diligence process following which bank will decide on the winning investor.

from Banking & Finance – The Financial Express https://ift.tt/3qQsBvg

Read more »