Canara Bank and IndusInd Bank – Quarterly Results

Canara Bank and IndusInd Bank – Quarterly Results

Canara Bank reported 2.53% increase in total revenues at Rs.23,289 crore for the Jun-21 quarter. Net profits were up 158% at Rs.1,235 crore due to higher other income and lower loan loss provisions. Tepid interest income and investment income were compensated by higher other income in the quarter.

Canara Bank Quarterly Results

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income

₹ 23,289

₹ 22,714

2.53%

₹ 23,774

-2.04%

Net Profit

₹ 1,235

₹ 479

157.90%

₹ 1,196

3.24%

Diluted EPS

₹ 7.50

₹ 3.29

 

₹ 7.26

 

Net Margins

5.30%

2.11%

 

5.03%

 

Gross NPA Ratio

8.52%

8.87%

 

8.94%

 

Net NPA Ratio

3.46%

3.95%

 

3.82%

 

Capital Adequacy

13.46%

12.85%

 

13.27%

 

 

Retail banking revenues were higher by 5% while treasury income was higher by 10% in the Jun-21 quarter but corporate banking revenues were down. Fortunately, other income was up 39.7% at Rs.6,233 crore. Provisions for NPAs in the Jun-21 quarter were 34% lower at Rs.2,340 crore. Gross NPAs tapered by 42 bps to 8.52%, but still high in absolute terms.

PAT margins were 5.30%  in Jun-21 quarter against 2.11% in Jun-20 quarter and 5.03% in Mar-21 quarter. Capital adequacy is a little uncomfortable at about 13.46%. Any aggressive expansion of the loan book will need additional capital buffers.

IndusInd Bank reported 7.84% higher revenues at Rs.9,363 crore in Jun-21 quarter. However, net profits doubled to Rs.1,016 crore due to lower provisioning for loan losses. Net interest income was up 8% while NIMs were healthy at 4.06%. IndusInd had a total customer base of 2.9 crore as of Jun-21.

IndusInd Bank Quarterly Results

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income

₹ 9,362.76

₹ 8,682.17

7.84%

₹ 9,199.71

1.77%

Net Profit

₹ 1,016.11

₹ 510.39

99.09%

₹ 926.22

9.71%

Diluted EPS

₹ 13.11

₹ 7.36

 

₹ 12.09

 

Net Margins

10.58%

5.88%

 

10.07%

 

Gross NPA Ratio

2.88%

2.53%

 

2.67%

 

Net NPA Ratio

0.84%

0.86%

 

0.69%

 

Capital Adequacy

17.57%

15.16%

 

17.38%

 

 

While treasury income and corporate banking revenues were flat in Jun-21 quarter, retail banking revenues were up 22% at Rs.5,686 crore. Deposits grew 26% with CASA deposits growing 33% yoy. IndusInd had higher cost to income ratio of 40.38% while liquidity coverage ratio was healthy at 146%.

Gross NPAs at 2.88% was 21 bps higher yoy but the panic of Mar-20 is well and truly behind. The bank reported healthy ROA of 1.17%, even as capital adequacy was relatively comfortable at above 17%. 

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