9,000% dividend! Record payout from TMB

http://www.thehindubusinessline.com/industry-and-economy/banking/9000-dividend-record-payout-from-tmb/article5602547.ece

Tamilnad Mercantile Bank (TMB) has declared an interim dividend of 9,000 per cent. 

That’s actually Rs 900 per share of Rs 10 each, for the fiscal ending March 2014.

The board of this Tuticorin-headquartered bank took a decision to this effect at a meeting held on January 18.

Bank sources said this would translate into an outgo of Rs 25.6 crore (unchanged from last year).

The 9,000 per cent interim dividend is said to be the highest in the banking industry and this is the second year in a row that the bank has declared such a high dividend. It may be recalled that the bank’s board had approved a dividend of Rs 750 per share for 2008-09 and Rs 1,000 per share the following year, but could not make the payment as the annual general meetings for 2009-10 and 2010-11 were not held due to legal issues.

Bank sources said TMB’s shares continue to trade at between Rs 60,000 and Rs 65,000 a share in the informal market.

SIB expects to cross over Rs 1 lakh cr business this fiscal

http://www.thehindubusinessline.com/industry-and-economy/banking/sib-expects-to-cross-over-rs-1-lakh-cr-business-this-fiscal/article4587995.ece

Private sector lender South Indian Bank Limited would be in a position to cross over Rs 1 lakh crore business in the current fiscal, said a top bank official.

The Bank’s Managing Director and Chief Executive Officer Dr V A Joseph told PTI that total business for fiscal 2013 had crossed over Rs 76,000 crore as against the target of Rs 75,000 crore.

SIB expects to increase its branches up to 800 and 1000 ATMs this fiscal with a total business of Rs 1 lakh crore, he added.

Joseph said SIB had made good strides in performance in the past eight years despite all odds and the global economic downturn.

SIB was forced to skip the dividend for fiscal 2004-2005.

Net profit went up from Rs 50 crore in 2006 to Rs 402.66 crore in 2012 while payment of dividend increased from 18 per cent in 2006 to 60 per cent in 2012.

To a query on hike in dividend for fiscal 2013, he said under no circumstance would it be less than 60 per cent as the performance audit was not yet over.

He said net profits for fiscal 2013 was likely to be over Rs 500 crore, a record profit in the 85-year old history of SIB. The target for the fiscal was to increase the number of branches to 750 and 750 ATMs and a business turnover of Rs 75000 crore.

Joseph said that in the past eight years SIB had purchased property worth several crores of rupees in Delhi, Mumbai, Calcutta, Chennai, Bangalore and Kochi.

SBT net grows 31% on higher interest income

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-net-grows-31-on-higher-interest-income/article4354258.ece

State Bank of Travancore (SBT) posted a net profit of Rs 132 crore in the third quarter of the current fiscal.

This represented a 31 per cent jump over the net profit of Rs 101 crore in the corresponding quarter of the previous year.

Speaking to Business Line, P. Nandakumaran, Managing Director, SBT, attributed the good performance to an overall improvement in the operational scheme of things. It also marked reversal of a trend in which the cost of deposits had been weighing down the overall performance. The bank had managed the challenge on this front after NRI deposits, which accounted for 24 per cent, were set free last year. Adequate provisioning has been made not only for non-performing assets (Rs 245 crore this quarter) but also for restructured assets.

“Growth in advances resulting in a higher net interest income also aided in achieving a growth in the net profit,” Nandakumaran said.

The net interest income moved up from Rs 1,325 crore to Rs 1,511 crore, a year-on-year growth of 14.04 per cent.

Net interest margin (NIM) stood at 2.50 per cent (2.63 per cent).

The net operating income rose from Rs 1,799 crore to Rs 1,975 crore, a growth of 9.75 per cent.

The capital to risk weighted assets ratio (CRAR) stood at 11.40 per cent (under Basel II framework) against a regulatory minimum of nine per cent. Gross net performing assets (NPAs) grew to 3.04 per cent from 2.82 per cent while net NPAs stood at 1.83 per cent against 1.64 per cent.

Total business crossed Rs 1.45 lakh-crore mark and stood at Rs 1.46 lakh crore as at the end of December, 2012.

State Bank of Mysore Q3 profits up 39.50%

http://www.thehindubusinessline.com/industry-and-economy/banking/state-bank-of-mysore-q3-profits-up-3950/article4353943.ece

State Bank of Mysore’s (SBM) profits rose 39.50 per cent to Rs 154.77 crore in the third quarter of the current fiscal.

The bank’s total income was up 13.19 per cent to Rs 1,616 crore. EPS stood at Rs 33.07 compared with Rs 23.70 recorded last year.

SBM’s asset quality improved with percentage of gross non-performing assets (NPA) to gross advances at 3.99 per cent (3.67 per cent). Gross NPA for Q3 stood at Rs 1,772.36 (Rs 1,396.70 crore) and percentage of net NPA to net advances stood at 1.95 per cent (1.73 per cent). Return on asset (ROA) annualised stood at 0.98 per cent (0.80 per cent).

The bank’s net interest income increased 11.35 per cent to Rs 461 crore (Rs 414 crore). Net interest margin (NIM) was higher at 3.27 per cent from 3.23 per cent.

SBI net profit jumps 30% to Rs 3,658 cr

http://www.thehindubusinessline.com/industry-and-economy/banking/sbi-net-profit-jumps-30-to-rs-3658-cr/article4080667.ece

State Bank of India reported a 30 per cent increase in net profit at Rs 3,658 crore in the July-September quarter as against Rs 2,810 crore in the year-ago period.

Though the bank reported healthy profitability, its stock was down 3.59 per cent or Rs 80.55 at Rs 2,163 at about 1.30 pm on the BSE. The stock dragged the BSE Sensex down nearly 125 points in afternoon trade today.

Bad loans continued to be a concern with gross NPAs at Rs 49,202 crore (as at September-end 2012) against Rs 33,946 crore as at September-end 2011.

The SBI stock came under pressure after its Q2 numbers showed that its operating profit was marginally down in the second quarter of this year compared to the corresponding quarter last year though the income earned registered significant growth.

Both its gross and net NPAs in the second quarter of this fiscal were higher than in the same quarter last year.

According to SBI’s unaudited results for the second quarter this year, it had earned a total income of Rs 32,953.47 crore compared to Rs 29,394.32 crore in the same quarter last year. The total expenditure was Rs 25,599.82 crore (Rs 21,920.01 crore) in the second quarter of last year. Its operating profit before provisions and contingencies was Rs 7,353.65 crore compared with Rs 7,474.31 crore in Q 2 last fiscal.

SBM & SBH - Q2 Results

State Bank of Mysore Q2 profit up 8.7%

State Bank of Mysore recorded an 8.68 per cent increase in profit to Rs 145.35 crore in the second quarter (Q2) of this fiscal (2012-13).

The bank’s revenues rose to Rs 1,609.55 crore, a 19.20 per cent increase over the same period last year. EPS stood at Rs 31.06 against Rs 16.62 recorded last year.

The bank’s asset quality slipped with the percentage of gross NPA (non-performing assets) to gross advances rising to 4.33 per cent (3.72 per cent).

Gross NPA in Q2 stood at Rs 1,780.31 (Rs 1,334.38 crore) and percentage of net NPA to net advances, at 1.92 per cent (1.82 per cent).

State Bank of Hyderabad Q2 net drops 8% as operating expenses rise

State Bank of Hyderabad’s net profit for the quarter ended September 30 fell 8 per cent, mostly on account of an increase in operating expenditure.

Its net profit for the quarter was Rs 213.43 crore, down from Rs 232.04 crore in the year-ago period.

The bank’s total business expanded by 14.41 per cent to touch Rs 1,85,616 crore (Rs 1,62,241 crore) . The ratio of gross NPA and net NPA to advances stood at 3.30 per cent and 1.42 per cent respectively.

SBH will be adding another 150 branches this fiscal to its existing 1,490 branches.

Bank deposits up 10%, credit rises 6% in first half

http://www.business-standard.com/india/news/bank-deposits10-credit-rises-6-in-first-half/489453/

Credit (loans) growth slowed in the first half of the financial year while deposits swelled, widening the gap between growth in bank deposits and outstanding loans. According to a Reserve Bank of India data, bank deposits grew 10 per cent or Rs 6 lakh crore. Loans grew six per cent or Rs 2.73 lakh crore.

Deposits had grown 9.7 per cent and credit seven per cent during the same period in the last financial year.

RBI had indicated deposits would grow 16 per cent and credit 17 per cent by the end of the current financial year.

According to bankers and experts, the central bank is likely to rework the projections in the next credit policy review on October 30.

However, some bankers said loans would pick up in the second half of the financial year thanks to the upcoming festival season. To take advantage of the festive season, most banks, including the State Bank of India and ICICI Bank, have lowered lending rates to attract customers.

Krishna Kumar, managing director of SBI, had recently said the retail segment would grow 18-20 per cent but might not be able to compensate for the slow growth in corporate credit.

“We saw doubling of applicants (per day) for home loans. There is good growth in auto loan segments, too,” said Kumar, adding the SBI was receiving 800-1,000 auto loan applications every day.

ICRA concerned over Q1 numbers of Dhanlaxmi Bank

http://www.thehindubusinessline.com/industry-and-economy/banking/article3840111.ece

The “uncertainty” caused by the resignation of one of the statutory auditors of Dhanlaxmi Bank and “concerns over the reported numbers” of financial performance of the first quarter, has led rating agency ICRA to place the bank on ‘rating watch with negative implications’.

“Any material changes in the reported financial numbers may have a negative impact on the credit profile of the bank,” ICRA says.

The bank reported a net loss of Rs 12 crore for the April-June quarter of 2012-13, over a net loss of Rs 86.51 crore in the previous quarter.

ICRA notes that the costs were 1.4 times the income in May, when it had revised the rating of the bank. The “reported capital adequacy” at the end of June stood at 10.36 per cent, it said.

On the BSE today, the Dhanlaxmi Bank shares closed at Rs 45.10.

State Bank of Patiala net up 87% - Q1

http://www.thehindubusinessline.com/industry-and-economy/banking/article3750317.ece

State Bank of Patiala (SBP) has reported a 87 per cent increase in net profit for the first quarter ended June 30, 2012 at Rs 224 crore (Rs 120 crore).

Total income for the quarter under review increased 30 per cent to Rs 2,539 crore (Rs 1,958 crore).

The bank has made a provision of 27 crore during the first quarter towards non-performing assets (NPAs).

SBI net jumps 137% to Rs 3,751.6 cr

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http://www.financialexpress.com

Despite a general slowdown in the economy, State Bank of India has posted a 137 per cent jump in net profit at Rs 3,751.56 crore in the April-June quarter against Rs 1,583.55 crore in the corresponding year-ago period. 

In the reporting quarter, India’s biggest bank posted a 17 per cent increase in total income at Rs 32,415.49 crore (Rs 27,731.67 crore), according to a filing made by the bank with the BSE.

The bank's net non-performing assets (NPAs) rose to 2.22 per cent of total loan book at the end of June, against 1.61 per cent a year ago, reflecting the impact of slowing economy.

Dhanlaxmi Bank posts Rs 12-cr net loss

Dhanlaxmi Bank today reported a net loss of Rs 11.81 crore for the quarter ended June 30, 2012.

However, the bank had posted a profit of Rs 3.4 crore in the same quarter last year.

Total income during the quarter stood at Rs 365.08 crore, down from Rs 370.50 crore in the year-ago period, the bank said in a filing to the BSE.

Shares of the bank were trading at Rs 52.25 apiece on the BSE, up 0.67 per cent from their previous close.

Muted business growth, pressure on net interest margins

http://www.thehindubusinessline.com/industry-and-economy/banking/article3731292.ece

Quarterly GDP growth slided all through the four quarters of 2011-12 to touch a nine-year low of 5.3 per cent in the January-March quarter. The growth concerns prompted the RBI to reduce the benchmark repo rate by 50 basis points in its Annual Policy statement on April 17, 2012.

The transmission of the reduction in policy rates to the deposit and lending rates, however, was asymmetric. While modal base rate of commercial banks declined by 25 bps, the modal deposit rate declined by only 2 bps in the June quarter.

The stickiness in deposit rates reflects interplay of factors such as tight liquidity and high inflation in Q1 of 2012-13.

It may be noted that growth in both deposits and advances for the banking system at 13.4 per cent and 16.5 per cent in Q1 has been below the RBI’s indicative projection of 16 per cent and 17 per cent, respectively, for 2012-13.

Read the full story and view chart:

SBH profit up 18% - Q1 results

http://www.thehindubusinessline.com/industry-and-economy/banking/article3723450.ece

Growth in net interest income has helped push up the net profit of State Bank of Hyderabad by 18 per cent to Rs 335.17 crore in the first quarter of the current fiscal, from Rs 283.94 crore during the comparative quarter of last year.

The net interest income stood at Rs 962.60 crore (Rs 713.49 crore) for the quarter under review, up 34.91 per cent. The bank also made higher made provisioning for non-performing asset to increase the provision-coverage ratio to 66 per cent. 

The Hyderabad-based bank’s total business expanded by 14.64 per cent to touch Rs 1,82,092 crore as on June 30, 2012. Deposits have touched Rs 1,03,909 crore, logging a year-on-year growth of 12.20 per cent. Advances have increased by 18.06 per cent to Rs 78,183 crore.

Federal Bank net up 30% at Rs 190 cr

http://www.thehindubusinessline.com/industry-and-economy/banking/article3717317.ece

Private sector lender Federal Bank reported a 30 per cent growth in its net profit to Rs 190 crore in the April-June period as compared with Rs 146 crore in the year-ago period.

The net interest income (difference between interest earned and interest expended) grew 7 per cent to Rs 492 crore (Rs 460 crore).

Net NPAs declined to 0.62 per cent from 0.74 per cent in Q1FY12. The net interest margins stood at 3.42 per cent. The CASA ratio was at 28.35 per cent.

Total advances increased by 19 per cent to Rs 38,043 crore with gold loans rising by 99 per cent at Rs 4,256 crore, while the total deposits were up by 18 per cent at Rs 50,558 crore.

State Bank of Travancore - Q1 Results - Profit rises 30%

http://www.thehindubusinessline.com/industry-and-economy/banking/article3708277.ece

State Bank of Travancore has registered a 30 per cent increase in net profit to Rs 181.44 crore in the first quarter of this fiscal compared with Rs 139.25 crore in the corresponding previous-year quarter.

Addressing newspersons here on Tuesday, Mr P. Nanda Kumaran, Managing Director, said that the total business has touched Rs 1,31,131 crore as at end-June 2012. The deposit base grew 14.62 per cent (annualised) to Rs 74,082 crore from Rs 71,470 crore as on March 2012.

The net operating income improved by 10.35 per cent to Rs 669.50 crore, and net interest income by 7.50 per cent to Rs 490.40 crore.

Total non-interest income increased to Rs 179.10 crore, as against Rs 150.51 crore in the corresponding period in the previous year. NRI deposits rose by Rs 2,373 crore during April-June. 

Gross advances rose by 7.25 per cent to Rs 57,049 crore from Rs 56,034 crore as on March 2012. Gross NPAs stood at 2.85 per cent (2.18 per cent in June 2011) and net NPAs, at 1.60 per cent (1.19 per cent).

He said that the bank opened 41 new branches during the financial year, taking the total number of branches to 920. It is now focusing on opening the 1,000th branch in the current year.

Gold loan kiosks have started functioning at many branches. And the gold loan portfolio of the bank, at Rs 7,300 crore, accounts for 14 per cent of the total advances, he said.

Muthoot Finance net rises 29% at Rs 246 cr

http://www.thehindubusinessline.com/industry-and-economy/banking/article3703847.ece

Muthoot Finance on Monday reported 29 per cent growth in net profit at Rs 246 crore during the first quarter ended June 30.

Total income grew by 41 per cent at Rs 1,294 crore, retail loan assets under management decreased by Rs 1,337 crore to Rs 23,336 crore, a decline of five per cent.

The RBI restrictions in March this year with regard to the maximum loan that could be given against the value of the gold jewellery pledged did create concern, he said.

Results of various Banks - Q1 - list 2

Bank of Baroda net profit up 10% in Q1

Bank of Baroda posted a measly 10 per cent growth in first-quarter net profit as the bank set aside more money to cover bad loans. For the April to June period, the bank net profit rose to about Rs 1,139 crore from Rs 1,033 crore, a year ago.

IOB Q1 net up 13.5% at Rs 233.43 cr

Indian Overseas Bank (IOB) today reported a 13.5 per cent increase in net profit at Rs 233.43 crore for the first quarter ended June 30, 2012. The public sector bank’s net profit was Rs 205.58 crore during the same period last fiscal.

Allahabad Bank net up 23% on core operations

Backed by growth in core operations and improved recovery, Allahabad Bank posted a 23 per cent rise in net profit during the first quarter of this fiscal. Net interest income grew 11 per cent to Rs 1,306 crore.

Corporation Bank posts 5% growth in first quarter net profit

Corporation Bank’s net profit nudged up marginally by five per cent in the first quarter as it set aside higher amount to cover bad loans. For the April to June quarter, the public sector bank’s net profit rose to about Rs 370 crore from Rs 351 crore in the corresponding period a year-ago.

Results of various Banks - Q1

PNB net rises 12.7% in Q1

Punjab National Bank today reported a 12.7 per cent increase in net profit for the quarter ended June 30 at Rs 1,246 crore (Rs 1,105 crore).

ICICI Bank standalone net profit up 36% in Q1

ICICI Bank has reported a 36 per cent rise in net profit to Rs 1,815 crore on a standalone basis for the first quarter of FY13.

Central Bank of India net profit up 20%

Central Bank of India’s first-quarter net profit grew by about one-fifth as the bank earned a higher interest on its advances. For the April to June quarter, the bank’s net profit grew to about Rs 336 crore from Rs 281 crore, a year ago.

Bank of India profit rises 71% to Rs 887 cr

Lower provisioning helped Bank of India report a 71 per cent jump in the April-June period net profit at Rs 887 crore as compared with Rs 517.5 crore in the year ago period.

Vijaya Bank Q1 net up 54% on lower provisioning, higher interest income

Lower provisioning for NPAs and higher net interest income lifted Vijaya Bank’s first quarter net profit by 54 per cent to Rs 111.36 crore.

SBM - Q1 Result

State Bank of Mysore posted 38 per cent lower net profit for the April-June quarter at Rs 39.79 crore (against Rs 64.28 crore a year ago), mainly due to higher provisioning. 

Total income rose 33 per cent over last year to Rs 1,566.7 crore (Rs 1,176.26 crore). 

Operating profit was Rs 298.57 crore (Rs 255 crore). Interest income grew 22 per cent to Rs 1435 crore. 

In a stock exchange filing, the bank said it had made an NPA provisioning of Rs 196.9 crore during the quarter, which was well above the Rs 100 crore it provided for a year ago. 

Gross NPA was at 4.67 per cent (Rs 2.83 per cent) and net NPA 2.43 per cent (1.42 per cent).

SBBJ - Q1 - Results

State Bank of Bikaner and Jaipur (SBBJ), the associate bank of State bank of India, reported a 31 per cent growth in net profit to Rs 168 crore in April-June period for FY2012-13 due to higher interest income and from other income. Net profit in the year-ago period was at Rs 128 crore.

Net Interest Income (difference between interest earned and interest expended) rose by 33 per cent to Rs 656 crore from Rs 493 crore in Q1FY’12.

Other income during the quarter increased by 63 per cent to Rs 154 crore (Rs 94 crore in Q1FY12) due to higher government commission. Operating profit jumped by 61 per cent to Rs 469 crore (Rs 291 crore).

Net Interest Margins increased by 48 basis points to 3.90 per cent from 3.42 per cent in Q1FY’12.

SBBJ’s advances and deposits during the quarter grew by 21 per cent and 20 per cent respectively.

Net non performing assets (NPAs) increased by 2.31 per cent from 1.21 per cent in the same quarter last year.