Private sector lender IDBI Bank on Monday posted 278 per cent year-on-year rise in net profit at Rs 512 crore for the foruth quarter ended March 2021 (Q4FY21) on robust growth in net interest income. The profit stood at Rs 135 crore in fourth quarter ended March 2020 ( Q4Fy20). Sequentially its net profit was up 35 per cent from Rs 378 crore in quarter ended December 2021 (Q3FY21). For FY21, net profit was Rs 1,3459 crore as against net loss of Rs 12,887 crore in FY20. Its stock was trading 2.97 per cent at Rs 36.35 per share on BSE. The Net Interest Income (NII) improved by 38 per cent for Q4FY21 to Rs 3,240 crore from Rs 2,356 crore for Q4FY20. Sequentially NII was up by 79 per cent over Rs 1,810 crore in Q3FY21.
NCUA board briefed on PCA rule, cybersecurity trends
Staff briefed the NCUA board on the rule at its Thursday meeting.
Specifically, it makes two temporary changes to Prompt Corrective Action (PCA) requirements:
Temporarily enables the NCUA Board to issue an order applicable to all federally insured credit unions to waive the earnings-retention requirement for any federally insured credit union that is classified as adequately capitalized.
PCA flexibility coming soon from NCUA
CUNA and League advocacy efforts over the past 13 months have included a strong push with NCUA to ensure Prompt Corrective Action (PCA) flexibility and overall engagement with the agency to secure policies that support credit unions during the pandemic, CUNA Chief Advocacy Officer Ryan Donovan wrote in CUNA’s
Removing Barriers Blog.
NCUA approved an interim final rule in May 2020 to both allow the board to temporarily waive the earnings retention requirement for adequately capitalized credit unions and allow certain credit unions to submit simplified net worth restoration plans. This rule expired Dec.31.
CUNA and all 34 credit union Leagues wrote to NCUA Chairman Todd Harper last month to encourage renewal of the interim final rule, and the topic was discussed this week at a meeting between Harper and CUNA’s Small Credit Union Community.
SC order on NPA reclassification: Key metrics bank depositors should track now
Banks will revert to old NPA reporting format, which may impact their financials
Not only did the pandemic raise the business risks of banks but it also added more terms to the jargon used to express the financial conditions of banks. Depositors trying to gauge the non-performing assets (NPA) of a lender had to also keep an eye on collection efficiency and proforma NPAs. This stemmed from the Supreme Court’s stay on recognising bad loans until the legality of the loan moratorium’s extension was finalised. Thankfully, the apex court cleared the air through its ruling on March 23. While banks will now revert to the old format of reporting GNPAs or gross Stage 3 assets (Ind AS) in the upcoming quarters, the ruling can have immediate implications on the financials of banks, particularly for the quarter ended March 31, 2021. Depositors will now need to see the strength of the following financial metrics
As the governments new disinvestment policy moves ahead, the Union Cabinet is likely to consider the privatisation of IDBI Bank in its meeting next week, sources said on Tuesday.