The bank saw Rs 1062 crore worth of new additions to bad loans in the third quarter. The lender had reported slippages of Rs 800 crore in the first and Rs 1000 crore in the second quarter of current financial year.
The lender said that most of the slippages came from four accounts, of which two were non-banking finance companies (NBFCs).
Axis Bank, Kotak Mahindra Bank expect higher slippages, Bandhan Bank looks to ramp up home loan portfolio
Confident of achieving the guided loan growth of 18% for FY18, said VG Mathew, MD & CEO, South Indian Bank.
The slippage ratio is also on a downward trend and expect it to range between 1-1.5% in 1-2 years, said N Kamakodi, MD CEO, City Union Bank.
“Non-performing assets (NPA) resolution ordinance of central government and the prompt correction action initiated by Reserve Bank of India (RBI) are in right direction and are going to help the banks to attempt this NPA menace in its right perspective”, Mahabaleshwar MS, MD & CEO, Karnataka Bank told CNBC-TV18.
Ground work to resolve the nonperforming loans‘ (NPL) issue has been completed but couple of more quarters need to go by before results start showing says, State Bank of India‘s MD-Corp Banking Group B Sriram sharing his outlook on performance in the coming quarters with CNBC-TV18.
In the first 9 months of the current fiscal, the state-owned term lender mobilised about Rs 400 crore out of Rs 1,000 crore set for the entire fiscal.
Hinting at the fact that another lending rate cut may not come very soon, Ananthasubramanian said that all banks have brought huge cuts to the MCLR (marginal costs of funds based lending rates) after demonetisation already and these cover all the benefits the RBI passed onto the banks.
The public lender's net loss for the December quarter improved to Rs 130 crore from Rs 424.70 crore in the year-ago period.
Concerns of investors have not entirely abated after Axis Bank‘s December quarter numbers. The stock has been under pressure since it reported higher-than-expected slippages in the second quarter.
Speaking to CNBC-TV18, Vishwavir Ahuja, RBL Bank‘s Managing Director and Chief Executive Officer, said unexpectedly high loan growth in the third quarter had put it on track to meet its annual guidance of 30-35 percent.
Net interest income during the quarter grew by 4.1 percent to Rs 4,333.73 crore compared with Rs 4162.06 crore in year-ago period, with loan growth of 10 percent at Rs 3.47 lakh crore as of December 2016.
Speaking to CNBC-TV18, Nilesh Parikh, Associate Director at financial services firm Edelweiss Securities, says he expects strong numbers from Yes Bank in the third quarter.
Due to the recent ban on Rs 500 and Rs 1000 currency notes to curb counterfieting and crack down on black money, Agarwalla says MSMEs' business will be severly hurt and could lead to slippages.
Country's largest lender State Bank of India (SBI) is likely to show a 30.5 percent degrowth in second quarter profit Rs 2,697 crore compared with year-ago period.
Public sector lender Bank of India has reported profit in July-September quarter for the first time since Q2FY16 on account of other income and fall in slippages despite higher provisions. Profit stood at Rs 126.8 crore for the quarter against loss of Rs 1,126.2 crore in same period last fiscal.
Worst seems to be over for Canara Bank in terms of stress on books and profitability will be better during the second half of the year, says MD & CEO Rakesh Sharma.
In an interview to CNBC-TV18, N Krishnamachari, MD of State Bank of Mysore spoke about the results and his outlook for the company.
Over the last six quarters, not much improvement was seen on the operating side, said Jairam Sridharan, CFO of Axis adding that there now is more uncertainty over eventual numbers of slippages.
Country's third largest private sector lender Axis Bank is expected to report a 14.6 percent degrowth in second quarter profit at Rs 1,636.7 crore compared with year-ago period, according to analysts polled by CNBC-TV18. Provisions will be closely watched for profit growth.
SBI's margins have been impacted due to slippages but are expected to improve with growth in advances, says Chairman Arundhati Bhattacharya.
Slippages for the Q1 were Rs 3,464 crore, which are mostly from the iron & steel and textile industries, says Animesh Chauhan, MD & CEO of OBC. Total slippages from the restructured books stood at near Rs 1,500 crore.
Asset quality more or less looked stable, though it weakened a bit on sequential basis. Gross NPA increased to 6.94 percent from 6.5 percent and net NPA to 4.05 percent from 3.8 percent.