MUMBAI: Public sector unit (PSU) banks seem to have put the worst at the back of them. The combined loss of all state-owned lenders has shriveled 74 in line with cent to Rs 16,614 crore for the quarter ended June 2018 (Q1FY19) as in comparison to Rs 62,681 crore within the previous quarter of January-March (Q4FY18).
Private sector banks, too, saw an improved efficiency. The collective profit of personal lenders (aside from state-owned J&K Bank and small finance banks) used to be up at Rs 9,914 crore for Q1FY19 from Rs 7,393 crore for Q4FY18. The non-public sector’s improved efficiency is due to a turnaround in Axis Bank, which reported a net profit of Rs 701 crore for the first quarter of the current fiscal as against a loss of Rs 2,188 crore within the previous quarter.
TOI has done a comparison of consecutive quarters instead of year-on-year with April-June 2017 (Q1FY18) as numbers from the corresponding duration of the previous fiscal are not comparable with Q1FY19 since new rules on unhealthy loans got here into drive from February 2018.
PSU financial institution losses appear to have peaked in March 2018 after the Reserve Bank of India’s February 12 round that pressured banks to categorise all antisocial loans as non-performing property (NPAs). While some provisioning still stays, as is reflected in an ‘Iceberg Report’ by the credit score data bureau TransUnion Cibil, the share of ‘regular’ loans is in the end rising. Lenders have warned of some new power loans slipping into NPAs in the second one quarter, but some of this will be offset by the answer of a couple of huge cases within the bankruptcy court docket.
The different excellent news in results for the most recent quarter is that seven public sector banks have reported profits as against handiest two within the previous quarter. Bank of Baroda, with a final analysis of Rs 528 crore, reported the easiest profit amongst PSU banks, followed by Canara Bank (Rs 281 crore), Indian Bank (Rs 209 crore), Vijaya Bank (Rs 144 crore) and Union Bank (Rs 129 crore).
Of these, handiest Indian Bank and Vijaya Bank had reported a net profit previous. The different two banks to report a net profit are Bank of India (Rs 95 crore) and Corporation Bank (Rs 85 crore).
State Bank of India continued to have the easiest loss of Rs 4,876 crore, which used to be lower than the previous quarter’s Rs 7,718-crore loss. IDBI Bank’s loss halved to Rs 2,410 crore from Rs five,663 crore previous. Seven banks have gross NPAs of greater than 20 in line with cent in their general property, of which IDBI Bank’s have crossed 30 in line with cent — the first for any lender.
According to the TransUnion Cibil report, around Rs 1.72 lakh crore is the non-recognised portion of borrowers who have defaulted on no less than one mortgage. Of this, Rs 1 lakh crore pertains to borrowers who're significantly in default to different lenders. This Rs 1 lakh crore is the additional amount that is more likely to slip into NPAs.
Private sector banks, too, saw an improved efficiency. The collective profit of personal lenders (aside from state-owned J&K Bank and small finance banks) used to be up at Rs 9,914 crore for Q1FY19 from Rs 7,393 crore for Q4FY18. The non-public sector’s improved efficiency is due to a turnaround in Axis Bank, which reported a net profit of Rs 701 crore for the first quarter of the current fiscal as against a loss of Rs 2,188 crore within the previous quarter.
TOI has done a comparison of consecutive quarters instead of year-on-year with April-June 2017 (Q1FY18) as numbers from the corresponding duration of the previous fiscal are not comparable with Q1FY19 since new rules on unhealthy loans got here into drive from February 2018.
PSU financial institution losses appear to have peaked in March 2018 after the Reserve Bank of India’s February 12 round that pressured banks to categorise all antisocial loans as non-performing property (NPAs). While some provisioning still stays, as is reflected in an ‘Iceberg Report’ by the credit score data bureau TransUnion Cibil, the share of ‘regular’ loans is in the end rising. Lenders have warned of some new power loans slipping into NPAs in the second one quarter, but some of this will be offset by the answer of a couple of huge cases within the bankruptcy court docket.
The different excellent news in results for the most recent quarter is that seven public sector banks have reported profits as against handiest two within the previous quarter. Bank of Baroda, with a final analysis of Rs 528 crore, reported the easiest profit amongst PSU banks, followed by Canara Bank (Rs 281 crore), Indian Bank (Rs 209 crore), Vijaya Bank (Rs 144 crore) and Union Bank (Rs 129 crore).
Of these, handiest Indian Bank and Vijaya Bank had reported a net profit previous. The different two banks to report a net profit are Bank of India (Rs 95 crore) and Corporation Bank (Rs 85 crore).
State Bank of India continued to have the easiest loss of Rs 4,876 crore, which used to be lower than the previous quarter’s Rs 7,718-crore loss. IDBI Bank’s loss halved to Rs 2,410 crore from Rs five,663 crore previous. Seven banks have gross NPAs of greater than 20 in line with cent in their general property, of which IDBI Bank’s have crossed 30 in line with cent — the first for any lender.
According to the TransUnion Cibil report, around Rs 1.72 lakh crore is the non-recognised portion of borrowers who have defaulted on no less than one mortgage. Of this, Rs 1 lakh crore pertains to borrowers who're significantly in default to different lenders. This Rs 1 lakh crore is the additional amount that is more likely to slip into NPAs.
Q1 data shows worst may be over for PSU banks
![Q1 data shows worst may be over for PSU banks]()
Reviewed by Kailash
on
August 17, 2018
Rating:
