Banking Stocks struggling Post Third Quarterly Result


Feb 13 2017 04:33 PM ,   Dynamiclevels Daily Outlook  , No Comments


Bank StocksSBI posted its third quarter consolidated result on 10th Feb 2017 where bank’s net profit registered a growth of 70% in comparison to last year same quarter result. In standalone company registered a growth of 134.01%. However, Bank’s Net NPA increased by 46.71% and Gross NPA jumped by 41.76% YoY.  

Similarly, most of the PSU Banks has posted higher NPA’s in third quarter, which is signaling poor asset quality in Banks. Demonetization might have created a positive impact for banks as the money supply has gone up in the banking system. Pressure on banking segment with regards to asset quality is still a big question mark.

PSU Bank has an average Net NPA of 7.98%, IOB has NPA of 14.32%, Bank of Maharashtra has net NPA of 10.67% and United Bank Net NPA is 10.62%.

 

Overall Health of PSU Banks Post Q3 Result

 

Company Quarter Net Interest Margin % Net Interest Margin Net Profit Net Profit % YoY EPS % Gross NPA % Net NPA Provisions
SBI Dec’16 14,752 8.42 2610.000 134.01% 3.36 7.23% 4.24% 8943
Vijaya Bank Dec’16 906 22.88 230.280 337.71% 2.31 6.98% 4.74% 417
Indian Bank Dec’16 1,247 12.22 373.480 782.89% 7.78 7.69% 4.76% 540
Bank of Baroda Dec’16 3,134 15.86 252.670 1.1 11.40% 5.43% 2080
Syndicate Bank Dec’16 1,391 -8.23 93.560 1.03 8.69% 5.63% 785
Canara Bank Dec’16 2,414 8.41 321.880 278.82% 5.93 9.97% 6.72% 1485
Punjab & Sind Dec’16 511 -8.63 77.510 10.22% 1.94 9.40% 6.84% 176
Union Bank Dec’16 2,137 7.02 104.000 32.42% 1.51 11.70% 6.95% 1670
Andhra Bank Dec’16 1,218 -10.54 56.700 64.54% 0.83 11.88% 6.98% 829
Bank of India Dec’16 2,863 5.71 101.720 0.96 13.38% 7.09% 2303
Corporation Bk Dec’16 1,230 22.13 159.020 1.39 11.26% 7.64% 934
State Bk Travan Dec’16 602 -3.11 -67.760 -9.53 12.22% 8.03% 442
State B Bikaner Dec’16 685 -21.16 57.840 -71.94% 8.26 11.19% 8.26% 427
Central Bank Dec’16 1,506 -13.67 -605.700 -3.2 14.14% 8.54% 1486
UCO Bank Dec’16 976 -13.49 -437.090 -2.9 17.18% 8.99% 1326
PNB Dec’16 3,731 -9.44 207.180 306.16% 0.97 13.70% 9.09% 2936
State Bk Mysore Dec’16 550 8.53 -20.250 -4.22 14.46% 9.22% 385
Dena Bank Dec’16 666 17.55 35.310 0.45 14.79% 9.52% 484
IDBI Bank Dec’16 850 -45.33 -2254.960 -10.95 15.16% 9.61% 3206
Oriental Bank Dec’16 1,082 -17.36 -130.010 -3.76 13.80% 9.68% 1327
United Bank Dec’16 361 -40.64 64.100 277.06% 0.48 15.98% 10.62% 589
Bank of Mah Dec’16 702 -27.72 -182.510 -1.56 15.08% 10.67% 585
IOB Dec’16 1,335 -0.97 -554.440 -2.26 22.42% 14.32% 1406

In the above table SBI, Vijaya Bank and Indian Bank has shown good jump in Net interest margin and their Net Profit percentage has also shown a good jump in all three banks.    

Overall Health of Private sector Banks after Q3 Result

 

Company Quarter Net Interest Margin % Net Interest Margin Net Profit Net Profit % YoY EPS % Gross NPA % Net NPA Provisions
Yes Bank Dec’16 1,508 30.29 882.63 31% 20.89 0.85% 0.29% 115
HDFC Bank Dec’16 8,309 17.55 3865.33 15% 15.2 1.05% 0.32% 716
IndusInd Bank Dec’16 1,578 34.51 750.64 29% 12.57 0.94% 0.39% 217
DCB Bank Dec’16 209 30.55 51.30 25% 1.8 1.55% 0.74% 31
Kotak Mahindra Dec’16 2,050 16.09 879.76 39% 4.79 2.42% 1.07% 192
Federal Bank Dec’16 791 30.77 205.65 26% 1.2 2.77% 1.58% 159
Karur Vysya Dec’16 518 15.49 115.76 -24% 1.9 2.66% 1.68% 94
City Union Bank Dec’16 307 21.41 126.62 12% 2.12 2.98% 1.72% 92
Lakshmi Vilas Dec’16 191 14.09 78.38 70% 4.37 2.78% 1.82% 48
Axis Bank Dec’16 4,334 4.12 579.57 -73% 2.42 5.22% 2.18% 3,796
South Ind Bk Dec’16 418 2.66 111.38 10% 0.82 3.98% 2.52% 207
IDFC Bank Dec’16 521 34.81 191.26 -21% 0.56 7.03% 2.57% 232
Karnataka Bank Dec’16 377 23.47 68.52 -29% 3.22 4.30% 2.99% 101
ICICI Bank Dec’16 5,363 -1.64 2441.82 -19% 4.2 7.91% 4.35% 2,713
JK Bank Dec’16 583 -13.46 -498.47 -10.28 11.84% 5.99% 726

 

Private Banks has an average 2.03% Net NPA, Yes Bank has lowest NPA of 0.29% and has registered a growth in net profit by 31%. HDFC Bank is a second best Private Bank with 0.32% Net NPA and Net profit growth of 15%. IndusInd Bank and DCB Bank have also shown good performance in their third Quarter result.

Results of both PSU and Private Banks suggest that PSU banks are still struggling with bad asset quality and impact of the same is seen on their performance.

 Vijaya Bank, Indian Bank, SBI Bank, Yes Bank, HDFC Bank, DCB bank and IndusInd Bank are good banks to make an investment in, in the short term.  


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