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Kotak Mahindra Bank’s Chief Financial Officer Jaimin Bhatt on July 22 said the bank witnessed slippages from segments such as tractor finance and unsecured retail loans in the first quarter of the current financial year.
“Slippages came from tractor finance and retail unsecured loan,” Bhatt said.
In the April-June quarter, the bank reported slippages of Rs 1,205 crore, which is 0.4 percent of the net advances. Of this, Rs 288 crore was upgraded within Q1FY24.
“Our balance sheet size is now at over Rs 5 lakh crore. Slippages of Rs 1,205 crore a tad higher than we usually see; these were from the retail & tractor portfolios. Expect margins to normalise over a period of time,” says Kotak Mahindra Bank management after Q1FY24 results
“Our average current account deposits increased by 9.2% YoY. Savings account deposits increased by 5.6% YoY. Saw 2,30,000 registrations by non-ICICI Bank account holders on instabiz till June 30,” says ICICI Bank management.
Expect FY24 NIM levels to be broadly in line with what we saw in FY23. Our NIMs averaged around 4.50% for FY23, and we expect to maintain that this year. Expect the deposit repricing pressure to go away in a quarter or so, says ICICI Bank management after reporting Q1FY24 results
ICICI Bank, which reported a 40 percent jump in profit on July 22, wrote off loans worth Rs 1,169 crore in the April-June quarter of the current financial year against Rs 1,158 crore in the year-ago period, the private lender said in its earnings report.
The bank's management said the write-offs were routine. “The write-offs in this quarter is routine and is line with our policy. We had write-offs of Rs 1,158 crores in Q1 of FY23,” said Sandeep Batra, Executive Director, ICICI Bank, during an interaction with media after the result announcement.
-- Kotak Mahindra Bank’s investment in government securities rose to Rs 94,038 crore in April-June from Rs 61,349 crore in the year-ago period.
-- In the previous quarter, it stood at Rs 89,853 crore.
-- The total investment in April-June rose around 39 percent on-year to Rs 1.24 lakh crore from Rs 89,183 crore in the year-ago period.
Jaipur-based AU Small Finance Bank on July 22 reported a 44 percent year-on-year (YoY) rise in net profit to Rs 387 crore in the first quarter of the current financial year, up from Rs 268 crore in the year-ago period.
The bank's asset quality saw a little improvement for the quarter. The lender's gross non-performing assets (GNPAs) stood at 1.76 percent compared with 1.96 percent in the corresponding quarter of the previous fiscal.
The net non-performing assets (NNPA) for the quarter stood at 0.55 percent compared with 0.56 percent in the year-ago quarter.
Strong net profit: The private lender reported a 50.62 percent year-on-year (YoY) rise in its consolidated profit at Rs 4,150.19 crore in the April-June quarter.
Net interest income: Kotak Mahindra Bank, in the reporting quarter, registered 32.72 percent growth in NII to Rs 6,234 crore.
Asset quality: The asset quality of the bank improved in the April-June quarter, with the GNPA ratio falling to 1.77 percent from 1.78 percent in the quarter-ago period, and 2.24 percent in the year-ago period.
Unsecured retail loans: Kotak Mahindra Bank recorded an increase in unsecured retail loans during the April-June quarter compared to the year-ago period, with credit card outstandings and microfinance loans surging aggressively.
Deposit: Average current deposits grew 8 percent to Rs 59,431 crore from Rs 55,081 crore in Q1 FY23. But there was a drop in average savings deposits to Rs 1.2 lakh crore from Rs 1.22 lakh crore in the year-ago period.
AU SFB reports Q1 FY earnings; net profit at Rs 386.9 crore,NII at Rs 1,246.2 crore.
Gross NPA at Rs 31,822.4 crore vs Rs 31,183 crore (QoQ); Net NPA flat at 0.48% (QoQ).
-- ICICI Bank reports Net Interest Margin (NIM) at 4.78% vs 4.90% (QoQ) & vs 4.01% (YoY)
-- Loan growth at 21.9% YoY & 4.5% QoQ
-- Provision coverage ratio at 82.4% vs 82.8% QoQ
-- Treasury gain at Rs 38 crore vs Rs 36 crore YoY
-- Recoveries and upgrades ex-writeoffs at Rs 3511 crore vs Rs 4283 crore QoQ
Private sector lender ICICI Bank on July 22 reported a net profit of Rs 9,648 crore for the first quarter of the current financial year, up 40 percent from the year-ago period and way ahead of market expectations of Rs 8,982 crore.
Analysts at Prabhudas Lilladher expected ICICI Bank's provisions to rise 17.3 percent on quarter and 66 percent on year to Rs 1,900 crore. Whereas Kotak Institutional Equities pegged the same at Rs 1,700.8 crore, up five percent QoQ (from Rs 1,619.8 crore) and 49 percent YoY (from Rs 1,143.8 crore).
