DA increased for bankers & bank pensioners from August-2022

The Dearness Allowance of Bank employees announced quarterly based on All India Consumer Price Index Numbers (AICPIN) and effective from February, May, August and November months of every year.

Bank employee Dearness Allowance in salary is a calculation of allowance paid to employees based on their work scale to compensate for the inflation, and this is calculated from a percentage of basic salary to mitigate the inflation on people.

As per current updates, the new total Dearness Allowance for Bank employees is 36.8% which calculated on the basis of Bank employee basic salary, wherein this quarter, the DA for public sector bank employees do hold an expecting increase by 3.76% Dearness Allowance in their salary from Aug 22 to October 2022 which increase their total salary.

Let’s check the Dearness Allowance for workmen and officer employees in public sector banks and some private banks are considered as per the below DA rate.

The allowance added in the salary is apart from basic salary and it is calculated on a defined percentage, where every bank has their pay grade defined for employees based on their location and type of work they are assigned.

Thus this increases the basic salary and the Dearness Allowance is a percentage from basic salary, and anyone who has got a higher basic salary will surely have a higher slab of Dearness Allowance, which does give them a good total NET salary.

This part of the salary is always increased and in Banks, it is estimated to have an increase in DA for every one year based on their performance, and we can update the new DA rates of bank employees for the next quarter from November 2022 after announcing price index numbers from July to Sep 2022.

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IDFC First Bank Q1 Result | Profit at Rs 474.33 crore

 

IDFC First Bank on July 30 announced its highest-ever standalone profit of Rs 474.33 crore for the quarter ended June 2022, against a loss of Rs 630 crore in corresponding period of the previous fiscal. The increase in core operating income and fall in provisions aided the profitability, with the sequential growth in profit at 38 percent.

Net interest income, the difference between interest earned and interest expended, grew by 26 percent to Rs 2,751.1 crore for the June FY23 quarter, against Rs 2,184.8 crore recorded in year-ago period, with 39 bps YoY improvement in net interest margin at 5.89 percent for the quarter, the bank said in its BSE filing. But there was 38 bps decline in net interest margin on a sequential basis.

"We have seen a steady growth of over 20 percent YoY, both on the lending side as well as the deposits side in Q1FY23. Our return on assets has nearly touched 1 percent and we expect it to rise from here," said V Vaidyanathan, Managing Director and CEO.

The bank reported provisions and contingencies for the quarter at Rs 308 crore, declining 83.55 percent year-on-year and the sequential fall in the same was 16.6 percent.

IDFC First Bank said it is well on track to meet the asset quality and credit cost guidance. Based on the improved portfolio performance indicators, the bank is confident to achieve its credit cost guidance for FY23 at around 1.5 percent on funded assets.

On the asset quality front, gross non-performing assets as a percentage of gross advances improved to 3.36 percent, down by 34 bps sequentially and net NPAs declined to 1.3 percent in Q1FY23, from 1.53 percent in Q4FY22.

Excluding legacy infrastructure loans (which will be run down in due course), the gross and net NPA would have been 2.39 percent and 0.80 percent respectively, said the bank, adding the overall restructured book reduced to 1.3 percent as on June 2022 of the funded assets, as against 1.8 percent as on March 2022.

Other income (non-interest income) increased by 1.56 percent YoY to Rs 855.67 crore for the quarter ended June 2022.

The bank said it had treasury loss of Rs 44 crore in Q1FY23 on account of increase in market yields. The bank conservatively manages its treasury positions as a result of which the treasury losses were minimal despite sharp increase in bond yields during the quarter.

Pre-provision operating profit fell by 5.13 percent YoY to Rs 943.82 crore during the quarter as operating expenses grew by 31 percent to Rs 2,663 crore during the same period.

Core operating profit (excluding trading gains) rose by 64 percent YoY to Rs 987 crore for the quarter Q1FY23, and sequentially, it grew by 18 percent, IDFC First Bank said.

The bank further said core operating income (NII + fee and other income excluding trading gains) increased by 39 percent YoY to Rs 3,650 crore in June FY23 quarter aided by strong NII and fee income growth. Sequentially, the growth was 4 percent.

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Indian Bank Q1 net profit rise 4%

 

State-run Indian Bank has posted a 4 per cent increase in net profit for the first quarter of the financial year 2022-23 to Rs 1,311 crore as compared with Rs 1,259 crore during the same period during the last financial year.

Total income of the bank during the April-June quarter of 2022-23 also increased by 3 per cent to Rs 11,898 crore from Rs 11,553 crore in the year ago period. The bank’s operating profit for June 2022 was seen up by 4 per cent at Rs 3,575 crore from Rs 3,435 crore in June 2021.

The gross non-performing assets decreased by 156 basis points (bps) to 8.13 per cent of the gross advances as of June 2022, from 9.69 per cent during the same time last year. Its net non-performing assets also reduced by 135 bps to 2.12 per cent from 3.47 per cent in June 2021. Non-performing asset provision coverage ratio improved by 608 bps to 88.08 per cent during the first quarter of 2022-23 from 82 per cent in Q1 of 2021-22.

During the period under review, the net interest income increased by 13 per cent to Rs 4,534 crore from Rs 3,995 crore during the same time last financial year. Non-Interest income (excluding treasury income) grew by 37.67 per cent to Rs 1,736 crore in June 2022 from Rs 1,261 crore during the same quarter last financial year.

Deposit increased by 8 per cent year on year and reached to Rs 5,84,251 crore in April to June quarter of 2022. CASA also grew by 8 per cent. Advances increased by 9 per cent to Rs 4,25,203 crore during the quarter, from Rs 3,89,626 crore in June 2021.

“The core operations of the bank have contributed to this growth. This is because our retail credit has gone up by 14 per cent, housing loan by 11 per cent, auto loan by 22 per cent, personal loan by 32 per cent and gold loan by 42 per cent. Along with this CASA has grown by 8 per cent. So the result is increase in NII and other income,” said

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Bank of Baroda(BoB) Q1 Result, Profit spikes 79%

  

Public sector lender Bank of Baroda on July 30 reported a massive 79.4 percent year-on-year growth in standalone profit at Rs 2,168 crore for the quarter ended June 2022, despite fall in other income and pre-provision operating profit. The significant decline in bad loans provisions aided the bottom line.

Net interest income during the June quarter grew by 12 percent to Rs 8,838.4 crore compared to year-ago period, with credit growth at 18 percent and 10.9 percent YoY increase in global deposits.

"Global advances increased by 18 percent YoY to Rs 8.39 lakh crore with domestic advances growth of 15.7 percent YoY at Rs 6.95 lakh crore, while global deposits rose by 10.9 percent YoY to Rs 10.32 lakh crore with domestic deposits growing 8.5 percent to Rs 9.09 lakh crore," Bank of Baroda said in its BSE filing.

The bank further said the net interest margin at 3.02 percent for the June quarter contracted 6 bps QoQ and 2 bps YoY.

"Global advances increased by 18 percent YoY to Rs 8.39 lakh crore with domestic advances growth of 15.7 percent YoY at Rs 6.95 lakh crore, while global deposits rose by 10.9 percent YoY to Rs 10.32 lakh crore with domestic deposits growing 8.5 percent to Rs 9.09 lakh crore," Bank of Baroda said in its BSE filing.

The bank further said the net interest margin at 3.02 percent for the June quarter contracted 6 bps QoQ and 2 bps YoY.

Total provisions and contingencies fell sharply by 58 percent YoY to Rs 1,684.80 crore for the quarter ended June 2022 and the sequential decline was 55 percent, while bad loans provisions dropped by 39 percent YoY to Rs 1,560 crore for the quarter.

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Punjab National Bank Q1 net profit falls 70%

 

State-owned Punjab National Bank on Thursday reported a 70 per cent decline in standalone net profit to Rs 308.44 crore in the June quarter, mainly due to higher provisioning for bad loans and decline in interest income.

The bank had posted a net profit of Rs 1,023.46 crore in the year-ago period.Total income in the first quarter of the current fiscal fell to Rs 21,294 crore. In the year-ago period, it was at Rs 22,515 crore, according to a regulatory filing.

The lender's interest income fell to Rs 18,757 crore from Rs 18,921 crore in the same quarter a year ago.

The gross Non Performing Assets (NPAs) declined to 11.2 per cent of the gross advances by June 2022 from 14.33 per cent a year ago. It was at 11.78 per cent as of March 2022.

In absolute terms, the gross NPAs or bad loans stood at Rs 90,167.10 crore at the end of the first quarter of FY23 compared to Rs 1,04,075.56 crore a year earlier.

The net NPA too declined to 4.26 as against 5.84 per cent in the same period of the previous year.

However, provisions for bad loans increased to Rs 4,814 crore in the April-June FY23 as against Rs 3,248 crore in the year-ago period.

As on June this year, the Provisioning Coverage Ratio stood at 83.04 per cent as compared to 80.26 per cent at the end of June 2021.

"Covid-19 pandemic has adversely impacted the economic activity across the globe, including the Indian economy for more than two years. The bank's results, operations and asset quality, however, have not been much affected because of the pandemic," it said.

In the latest June quarter, the bank's operating profit fell to Rs 5,379.21 crore.

On a consolidated basis, the bank reported a net profit of Rs 281.73 crore in the quarter ended June as against Rs 1,168.33 crore a year ago.

The consolidated financial result of the bank comprises five subsidiaries and 15 associates.

The capital adequacy ratio of the bank declined to 14.62 per cent at the end of June compared to 15.19 per cent in the year-ago period.

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ICICI Bank Q1 Results: Net profit up 50% YoY

 

India’s second biggest private sector lender ICICI Bank, on Saturday, reported that it has recorded a 50 per cent year-on-year (YoY) rise in profit after tax (PAT) at Rs 6,905 crore as against Rs 4,616 crore in the same quarter last year.

The lender, in a public release, also stated that its net interest income (NII) rose 21 per cent YoY to Rs 13,210 crore and its net interest margin (NIM) for the April-June period was at 4.92 per cent. In comparison, the bank’s NII stood at Rs 10,936 crore in the same quarter last year.

The bank’s total income during the Q1 FY23 also improved to Rs 28,336.74 crore, from Rs 24,379.27 crore in Q1 FY22. Its interest income climbed to Rs 23,671.54 crore during the same quarter in FY23 from Rs 20,383.41 crore in the year-ago period.

ICICI Bank also revealed that its gross non-performing assets (NPAs) dropped to 3.41 per cent of the gross advances at the end of Q1 FY23 from 5.15 per cent at the end of Q1 FY22.

The bank’s net NPAs or bad loans slipped to 0.70 per cent from 1.16 per cent, while its provisions for bad loans and contingencies also halved to Rs 1,143.82 crore in the April-June period of 2023, as against Rs 2,851 .69 crore in the year-ago quarter.

Provisions, excluding tax provision, plunged 60 per cent YoY to Rs 1,144 crore from Rs 2,852 crore. Provisions for Q1 FY23 included a contingency provision of Rs 1,050 crore made on a prudent basis.

Moreover, the bank also stated that its non-interest income, excluding treasury income, rose 25 per cent YoY to Rs 4,629 crore from Rs 3,706 crore. The bank also reported a treasury gain of Rs 36 crore for Q1 FY23 as against a gain of Rs 290 crore in Q1 FY22.

ICICI Bank’s gross NPA additions stood at Rs 5,825 crore. Recoveries and upgrades of NPAs, excluding write-offs and sale, was at Rs 5,443 crore as against Rs 4,693 crore in Q4 FY22.

Meanwhile, on a consolidated basis, ICICI Bank saw a 55 per cent jump in PAT at Rs 7,385 crore from Rs 4,763 crore YoY.

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Union Bank of India Q1 net profit rises 32% YoY

 

Public-sector lender Union Bank of India’s net profit grew 32 per cent year-on-year (YoY) to Rs 1,558 crore in the quarter ended June (Q1FY23) on the back of a rise in its net interest income (NII).

The Mumbai-based lender had posted a net profit of Rs 1,181 crore during the same period last year (Q1FY22).

Sequentially, its net profit rose 8.19 per cent from Rs 1,440 crore in Q4FY22.

Its net interest income (NII) was up 8.11 per cent in Q1FY23 to Rs 7,582 crore from Rs 7,013 crore in Q1FY22. It increased 12 per cent sequentially from Rs 6,769 crore in the March 2022 quarter.

Its net interest margin (NIM) declined to 3 per cent in Q1FY23 from 3.08 per cent a year ago. However, it improved from 2.75 per cent in March 2022.

A Manimekhalai, managing director, said with the uptick in credit growth, the NIM was expected to improve to 3.1 per cent by March 2023.

Its non-interest income rose by just 1.36 per cent to Rs 2,817 crore in Q1FY23 from Rs 2,779 crore in Q1FY22.

It fell sequentially from Rs 3,243 crore in Q4FY22.

The asset quality profile improved with gross non-performing assets (GNPAs) declining at 10.22 per cent in June 2022 from 13.6 per cent in the year-ago quarter and 11.11 per cent in March 2022.

Net NPAs dipped to 3.31 per cent from 4.69 per cent a year ago and 3.68 per cent in March 2022.

The emphasis will be on recoveries (Rs 15,000 crore) and the bank is looking to reduce GNPAs below 9 per cent and net NPAs below 3 per cent by March 2023, she said.

The provision coverage ratio rose to 84.75 per cent for the quarter under review from 81.43 per cent a year ago and 83.61 per cent in March 2022.

The bank’s loan book grew 12.95 per cent YoY to Rs 7.28 trillion in June 2022 from Rs 6.45 trillion a year ago. Credit is expected to grow 12-13 per cent in FY23 with strong offtake from companies and the retail segment.

Deposits grew 9.27 per cent YoY to Rs 9.92 trillion in June 2022. The share of low-cost deposits -- current accounts and savings accounts (CASA) -- declined to 36.19 per cent in June 2022 from 36.39 per cent a year ago and 36.54 per cent in March 2022. The bank is looking to increase it to 37.8 per cent by March 2023.

The bank’s capital adequacy ratio (CAR) stood at 14.42 per cent in June 2022, up from 13.32 per cent in June 2021.

The bank is planning to raise up to Rs 3,500 crore of equity capital through qualified institutional placement (QIP) in the third quarter of FY23, subject to market conditions.

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Canara Bank Q1 net profit up 71.8% YoY on higher interest income

Canara Bank’s net profit grew by 71.8 per cent year on year (YoY) to Rs 2,022 crore in the quarter ended June (Q1FY23) on the back of a rise in its net interest income (NII) and other income.

The Bengaluru-based public sector lender had posted a net profit of Rs 1,177 crore during the same period last year (Q1FY22). Sequentially, its net profit rose 21.4 per cent from Rs 1,666 crore in Q4FY22.

Its net interest income (NII) was up 10.15 per cent in Q1FY23 to Rs 6,785 crore from Rs 6,160 crore in Q1FY22. However, it was down 3.14 per cent sequentially, from Rs 7,005 crore in the March 2022 quarter. Its NIM improved to 2.78 per cent in Q1FY23 from 2.71 per cent a year ago. However, it fell from 2.82 per cent in March 2022.

The bank said in a filing with the BSE that its NIM was expected to be about 3.0 per cent in the current financial year.

Its non-interest income rose 24.55 per cent YoY to Rs 5,175 crore in Q1FY23, from Rs 4,155 crore in Q1FY22. It also rose sequentially from Rs 4,462 crore in Q4FY22.

Despite hardening of bond yields, the treasury income, which is part of other income, rose by 46.17 per cent YoY to Rs 1,849 crore in Q1Fy23 from Rs 1,265 crore in Q1Fy22. Sequentially, the treasury income was up 32.64 per cent from Rs 1,394 crore in March 2022.

The bank’s asset quality profile improved with gross non-performing assets (GNPAs) at 6.98 per cent till June 2022 from 8.5 per cent in the year-ago quarter. Net NPAs dipped to 2.48 per cent from 3.46 per cent a year ago.

NPA provisions rose to Rs 2,673 crore in Q1FY23 from Rs 2,334 crore in Q1FY22. The provision coverage ratio rose to 84.51 per cent for the quarter under review from 81.18 per cent a year ago.

The bank’s loan book grew 14.47 per cent YoY, on par with the rate at which the banking system’s loan book expanded (14.4 per cent YoY) in June 2022. The outstanding advances stood at Rs 7.83 trillion as of June 2022.

The deposits grew by 9.42 per cent YoY to Rs 11.18 trillion in June 2022. The credit-to-deposit ratio was 70.09 per cent at the end of June 2022 up from 67 per cent a year ago.

The bank’s total capital adequacy ratio (CAR) stood at 14.91 per cent in June 2022, up from 13.36 per cent in June 2021.

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