Canara Bank reported a 49% drop in net profit for the first quarter ended June 2008 at Rs 122.68 crore, down from Rs 240.55 crore in the corresponding quarter in the previous year.
The bank’s total income increased to Rs 4,099.05 crore from Rs 3,760.07 crore during the same period.
AC Mahajan, chairman and managing director, said, “Our interest earned has gone up to Rs 3730.54 crore from Rs 3379.97 crore, our total income has gone up from Rs 3,760.07 crore to Rs 4099.05 crore.” The reported net profit was after making a provision of Rs 581 crore, a press release issued by the bank said. Operating profit of the bank surged by 15% to Rs 704 crore from Rs 612 crore. The bank, who’s global business as on June 2008 stood at Rs 2,66,242 crore, up 12% from Rs 2,37,866 crore. A growth of 9.2% and 16.1% was reported on deposits and advances respectively, with the bank’s customer base increasing by 2.66 million since June 2007.
Indian Bank posts Rs 217.62 cr net
Indian Bank posted a 2.64% growth in net profit to Rs 217.62 crore for the period ended June 30, 2008 from Rs 212.03 crore during the same quarter last year. MS Sundara Rajan, chairman and managing director, Indian Bank said, “Despite high inflation, increased credit offtake and provision for tax, and mark-to-market, the bank could post a modest growth in net profit to Rs 217.62 crore in the first quarter.” The operating profit, however, has grown by 32.42% to Rs 436.63 crore (Rs 329.73 crore), he added.
Earlier, announcing the first quarter performance, he said the total income has grown 26.75% to Rs 1,744.99 crore (Rs 1,376.74 crore). While the interest income went up 25.65% to Rs 1,501.78 crore (Rs 1,195.20 crore), the net interest income grew 11.74% to Rs 539.53 crore, he said.
According to him, the overall business grew to Rs 106,691 crore, up 32.80% from Rs 80,341 crore. Total deposits grew 25% to Rs 62,215 crore (Rs 49,812 crore), gross advances were higher at Rs 44,476 crore, up 45.68% from Rs 30,529 crore. The net NPA level declined to 0.17% (0.28%). The bank has recovered Rs 113.88 crore.
UCO Bank to take a hit of Rs 130 cr
UCO Bank will take a hit of Rs 130 crore, following loss in treasury operations in the first quarter of the current financial year, a bank official said on Monday. Net profit of the bank in the first quarter would be lower by Rs 130 crore due to provisioning for depreciation for incurring mark-to-market loss, UCO Bank chairman and managing director SK Goel said on the sidelines of Ficci Banking Conclave. In the corresponding period last fiscal, Goel said there was no treasury loss. However, he added recovery was good and slippages were under control. Cash recovery during the first quarter was Rs 180 crore.
ING Vysya Bank Q1 rises 60%
First quarter profit of ING Vysya Bank for the fiscal 2009 rose 60% at Rs 40.63 crore, from Rs 25.32 crore recorded a year ago. The bank’s total income for the Q1 FY09 was Rs 606.26 crore, up 24.4% from Rs 487.34 crore earned during the corresponding period a year ago. During the quarter, the bank’s net interest income stood at Rs 157.97 crore. The bank said that it increased provision and contingencies’ allocation to Rs 41.43 crore, from Rs 15.89 crore for the year-ago quarter, owing to “higher risk costs and depreciation in the bank’s investment portfolio.” Deposits at the end of the quarter were Rs 20,381 crore, of which low cost deposits were at Rs 6,056 crore, the bank said. Advances were up 22% compared to the first quarter of FY08, at Rs 14,433 crore. ING Vysya’s capital adequacy ratio at the end of the fist quarter of FY09 stood at 10.38%.
LIC Housing Finance Q1 net up by 124%
The net profit of LIC Housing Finance (LICHF) company for the quarter ended June 2008 was Rs 104.66 crore from Rs 46.69 crore a year ago, a rise of 124%. The net interest margins of the company for the period stood at 2.7% from 2.3% a year ago. The company’s total interest income from housing loans was Rs 593 crore from Rs 442 crore a year ago, registering growth of 34%. Interest expenses for the period were Rs 443 crore. The company recorded a growth of 55% in loan sanctions and 24% in loan disbursements during the first quarter ended June 2008. Outstanding mortgage portfolio was Rs 22,757 crore from Rs 18,185 crore a year back, showing a growth of over 25%. The gross NPAs and the net NPAs stood at 2.22% & 1.15% respectively.
Bank Am net declines 41% to $3.41 bn
Bank of America Corp, the biggest US consumer bank and home lender, said second-quarter profit fell less than analysts estimated and predicted the purchase of Countrywide Financial Corp will add to earnings this year.
Bank Am said net income declined 41% to $3.41 billion, or 72 cent a share, from $5.76 billion, or $1.28, a year earlier. That beat the 54-cent average estimate of analysts surveyed by Bloomberg.
Four of the nation’s five biggest banks have now reported better-than-estimated results, sparking a rally in financial shares that lifted Bank of America 48% in three days last week. Chief executive officer Kenneth Lewis completed the $2.5 billion purchase of Countrywide on July 1, betting that the bargain price and a rebound in home sales will make up for the current record wave of mortgage defaults.
