India Banking - Feb 20, 2017

Abstract

This business intelligence report covers the Banking Industry in India.It presents up to date news and commentary, summarizes the latest research, and provides an industry overview and profiles of leading companies in the industry.

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LATEST COMPANY NEWS

News and Commentary

Bad loan crisis continues: 56.4 per cent rise in NPAs of banks - 20/2/2017

Bad loans have now shot up by 135 per cent from Rs 261,843 crore in the last two years.

For the complete story see:

http://indianexpress.com/article/business/banking-and-finance/bad-loan-crisis-continues-56-4-per-cent-rise-in-npas-of-banks-rbi-4533685/

The Indian Express - Banks look for insurance as cyber threats increase - 19/2/2017

The country reportedly lost a whopping USD 4 billion in fiscal 2016 to cyber crimes.

For the complete story see:

http://indianexpress.com/article/india/banks-look-for-insurance-as-cyber-threats-increase-4532504/

newsBTC - Indian Banking Sector to Work on the "Bankchain" - 18/2/2017

The banking industry's fascination with blockchain technology is a well-known fact.

For the complete story see:

http://www.newsbtc.com/2017/02/18/indian-banking-sector-work-bankchain/

Times of India - SBI likely to lose customers after merger with associate banks - 18/2/2017

The green signal by the cabinet to merge five subsidiary banks with SBI may see a drop in customers.

For the complete story see:

http://timesofindia.indiatimes.com/city/indore/sbi-likely-to-lose-customers-after-merger-with-associate-banks/articleshow/57213645.cms

Livemint - State Bank of Travancore to raise up to Rs600 crore ahead of merger with SBI - 18/2/2017

SBT will raise up to Rs600 crore to shore up additional tier-I capital by issuing Basel compliant bonds on private placement.

For the complete story see:

http://www.livemint.com/Money/LujLH0Z1uYuz127FAcfgqJ/State-Bank-of-Travancore-to-raise-up-to-Rs600-crore-ahead-of.html

Economic Times - Kotak-Axis merged entity to be among largest private banks - 17/2/2017

Its combined market cap would be US$40bn.

For the complete story see:

http://economictimes.indiatimes.com/markets/stocks/news/kotak-axis-merged-entity-to-be-among-largest-private-banks-clsa/articleshow/57200713.cms

Daily News & Analysis - Brexit won't hit Indian banking operations in UK - 17/2/2017

UK chief of SBI said that there will be no major impact on Indian banking operations in the UK.

For the complete story see:

http://www.dnaindia.com/money/report-no-major-impact-on-indian-banks-in-uk-post-brexitsbi-uk-chief-2326018

Knn India - Canara Bank to have a separate banking window to increase credit flow to MSMEs - 17/2/2017

Canara Bank is planning to open a separate banking window in the district in order to increase financing to the MSME sector.

For the complete story see:

http://knnindia.co.in/news/newsdetails/economy/canara-bank-to-have-a-separate-banking-window-to-increase-credit-flow-to-msmes

Financial Express - All public sector banks to join BHIM by February-end - 16/2/2017

BHIM is the common platform across the nation for making simple, easy and quick payment transactions using UPI.

For the complete story see:

http://www.financialexpress.com/money/all-public-sector-banks-to-join-bhim-by-february-end/553870/

Business Today - Banking industry's provisioning cost declines 6.8% in Q3 - 16/2/2017

The banking industry saw a steep fall in its provisioning cost is December quarter of 2016.

For the complete story see:

http://www.businesstoday.in/opinion/perspective/banking-industrys-provisioning-cost-declines-68-in-q3/story/246520.html

Bloomberg - India to Cut Bank Capital Infusion Target This Fiscal Year - 15/2/2017

Amount may drop by $1.2 billion as loan growth slows.

For the complete story see:

https://www.bloomberg.com/news/articles/2017-02-15/india-said-to-cut-bank-capital-infusion-target-this-fiscal-year

Hindu Business Line - India Ratings sees banks' core capital needs at $13.6 bn by March 2019 - 15/2/2017

India's banks will need Rs. 91,000 cr in Tier-1 capital until March 2019 to grow at a bare minimum pace of 8 to 9 percent on average.

For the complete story see:

http://www.thehindubusinessline.com/money-and-banking/fitch-india-affiliate-sees-banks-core-capital-needs-at-136-bln-by-march-2019/article9544321.ece

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Media Releases

Yes Bank (NSE: YESBANK) - YES Fintech: YES BANK Business Accelerator for Fintech Startups Receives 750 Applications - 16/2/2017

50+ Applications received from Global Fintech startups

4 Startup Meet up sessions were hosted in Hyderabad, Mumbai, Bangalore and New Delhi to engage with Fintech startups across the country

10 startups to be shortlisted for the first cohort launching on March 20, 2017

Mumbai, February 16, 2017: The first cohort of YES FINTECH has received phenomenal response from the global community of Fintechs, with 753 applicants around the world. The application phase concluded on February 11, 2017. The companies represent domains like payments, lending, treasury & forex, Governance Risk & compliance, wealth management etc. and cutting across Baas/PaaS/SaaS, Big Data & analytics, BlockChain, AI -Bots, etc.

10 start-ups will be selected for the first cohort of the 15 week program commencing on March 20, 2017. YES FINTECH Accelerator - a joint initiative of YES BANK, T-Hub, Anthill and Let's Talk Payments will involve 3 week onsite interactions at Mumbai and Hyderabad and 12 weeks offsite interactions, wherein the selected startups can continue to work on their business from the home location.

YES FINTECH an extension of YES BANK's Alliances Relationships and Technology(A.R.T) philosophy will work with the fintech start-ups to:

Support and nurture disruptive solutions in Financial services delivery

Create scalable business and deploy innovative technologies within a collaborative framework;

Integrating such technologies into the Bank's ecosystem by providing:

Digital Infrastructure support (API Banking, BIN Sponsorship, etc.)

Access to Funding (through the Bank/ its network of Investors, across PE/ VCs)

Advisory on Go-To-Market strategies and market penetration

Provide access to YES BANK Network of 2 million + retail, 10,000 + SME and 5000 + corporate customers

Access to funding upto USD 1 million through VC partners without any upfront equity commitment

As part of the program outreach, YES BANK has been organizing interaction sessions across the country to facilitate engagement in the Fintech start-up ecosystem. The strategic locations were chosen keeping in view the Fintech clusters in the country.

At Hyderabad, T-Hub, , hosted the YES FINTECH meet on January 17, 2017 which was followed by a session hosted at IIT Bombay, on January 29, 2017. The third session was held at the silicon valley of the east- Bangalore on January 31, 2017 and finally the last session concluded at the New Delhi on February 3, 2017.

The YES FINTECH events has witnessed participation from over 500 Fintech startups innovating in different sectors like payments, blockchain, trade finance, etc. Key speakers included Ritesh Pai, Senior President & Country Head, Digital Banking, YES BANK, Jay Krishnan, CEO, T-Hub; Prasad Vanga, CEO- Anthill and Amit Goel, CEO- LetsTalkPayments (LTP) joined the YES FINTECH event sessions to share their views on the recent developments in the Fintech industry and a dedicated panel on the YES FINTECH program.

In addition to the key partners of YES FINTECH, these sessions saw participation from the ART partners of YES BANK - Sameer Nigam, CEO- Crownit; Lizzie Chapman, Co-founder & CEO, ZestMoney, Bala Parthasarthy, Co-founder Money Tap; Vinay Bagra, Co-founder & CEO, Niyo solutions; Mohit Lalvani, Co-founder, QwikWallet; Co-founders, Benow, Trupay and many others as well.

https://www.yesbank.in/media/press-releases/yes-fintech-feb-16

Yes Bank (NSE: YESBANK) - Y ES BANK ramps up its debit card product suite - 14/2/2017

Mumbai, February 14, 2017: YES BANK, India's fifth largest private sector bank, has ramped up its existing portfolio of Debit Cards with the launch of new Debit Card variants. The highlight of this ramp up is the introduction of NFC (Near Field Communication) technology across card variants to enable Contactless Payments. The Bank has also strengthened its focus on Rupay Cards, and has introduced two cards on this platform offering superior features and benefits.

Segmented across its flagship customer segments YES Prosperity and YES FIRST, these Cards have been carefully customized and designed around the specific needs of debit card customers. The bank will issue these cards to all new customers, and also focus on offering these to its existing Debit Card customers. With these Debit cards offering unique benefits, customers can now choose a Debit Card tailored as per their requirement.

YES BANK Debit Cards now bring in unique benefits like:

Reward Points on all spends

NFC enabled Cards for contactless payments

Quick and secure management of the Card spend features with YES InControl powered by MasterCard, which allows users to set customized limits on their Debit Cards across locations, and categories.

Discounts on BookMyShow

Enhanced daily withdrawal limits

High insurance cover

Airport Lounge access

Range of offers across Dining, Travel, Shopping and more

The list of features and benefits also include Fuel Surcharge waiver, a dedicated reward redemption portal amongst others.

Speaking about the launch, Mr. Pralay Modal, Senior Group President- Retail and Business Banking, YES BANK Ltd said, "The ramp up of the YES BANK Debit Cards portfolio is a significant step towards us offering our customers, the power to choose a Debit Card that best suits their requirements. These cards have been designed to offer truly superior features and benefits to our valued customers. This launch will augment our efforts towards encouraging our customers to conveniently move to a less cash economy."

The YES Prosperity Debit Card range comprises of YES Prosperity Titanium, Titanium Plus, Platinum and Rupay Platinum Debit Cards, whereas the YES FIRST range includes the YES FIRST WORLD Debit Card.

YES BANK remains committed to supporting the Government's vision of a 'less-cash' economy and has introduced a comprehensive suite of Digital Banking products offering customers the convenience of seamless payments across multiple touch points.

https://www.yesbank.in/media/press-releases/yes-bank-ramps-up-its-debit-card-product-suite

Bank of Baroda (NSE: BANKBARODA) - Bank of Baroda Announces Financial Results for Q3 FY 2017 and 9M (Apr-Dec 2016) - 10/2/2017

February 10, 2017

Mumbai

Highlights (Standalone Basis)

Operating profit of INR 2,595 crore, up by 52.29% Y-o-Y.

Profit after Tax of INR 253 crore.

Net Interest Income (NII) up by 15.86% Y-o-Y.

Non-interest income up by 59.48% Y-o-Y.

Gross NPA at INR 42,642 crore during the quarter end was below June 2016 and September 2016 levels. GNPA ratio at 11.40%.

Net NPA at INR 19,006 crore also down on Q-o-Q basis by 1.73%. Net NPA ratio at 5.43%.

Provision Coverage Ratio (PCR) improved to 64.50% as at December 31, 2016 from 62.95% as at September 30, 2016 and 60.17% & 60.09% as at June 30, 2016 and March 31, 2016 respectively.

Domestic CASA grew by 43.19% (on Y-o-Y basis) and 27.94% (on Q-o-Q basis) driven by growth in both Current accounts and Savings Bank deposit.

Domestic CASA as a percentage of domestic deposits stood at 40.46% as compared to 29.97% as at December 31, 2015 and 34.23% as at September 30, 2016. On average basis, Domestic CASA percentage stood at 37.08% as at December 31, 2016.

Continued focus on recovery and collections, portfolio rebalancing in international book and improving profitability.

CRAR (Basel III) stood at 12.55% with Tier I ratio of 10.04% and CET-1 of 9.28%, excluding profits of 9 months period ended December 31, 2016.

Bank of Baroda announced its unaudited reviewed results for the Q3 of FY 2017, following the approval of its Board of Directors on February 10, 2017.

BUSINESS

The Bank's Total Business stood at INR 9,39,819 crore as at December 31, 2016 down from INR 9,73,959 crore as at December 31, 2015 on account of planned and structured rundown of assets and liabilities.

Total Deposits stood at INR 5,89,859 crore as at December 31, 2016 as against INR 5,89,687 crore as at December 31, 2015. Corresponding figures for Average Deposits (based on daily averages) were INR 5,72,946 crore and INR 5,87,116 crore.

During the quarter, CASA deposits showed robust growth driven by deposit of cash after demonetization. The quarter also saw repayment of FCNR (B) deposits of over INR 11,500 Crore mobilised during Q3 FY 2013-14.

Percentage of CASA deposits to total domestic deposits as at December 31, 2016 was 40.46% as against 34.23% as at September 30,2016.

Total Advances (Net) were INR 3,49,960 crore as at December 31, 2016 against INR 3,84,272 crore as at December 31, 2015. The quarter saw a turnaround in domestic credit growth and domestic advances (net) were INR 2,50,033 crore as at December 31,2016 against INR 2,46,494 crore as at September 30,2016.

The Bank's International Business continued to witness rebalancing of portfolio. As at December 31, 2016, the International Operations contributed 26.78% to the Bank's Total Business against 29.34% as at September 30, 2016.

INCOME

The Bank's Total Income stood at INR 12,181 crore in Q3 FY17. Net Interest Income stood at INR 3,134 crore up by 15.86 % y-o-y. Other Income increased by 59.48 % on y-o-y basis to INR 1,775 crore, driven by improved core fee income as well as trading gains.

EXPENSES

The Bank's Total Expenses declined by 4.36% (y-o-y basis) to INR 9,586 crore in Q3 FY 17 driven primarily by reduction in cost of deposits. The interest expenses reduced by 8.05% (y-o-y basis) from INR 7,909 crore as at December 31, 2015 to INR 7,272 crore as at December 31, 2016.

PROFIT

Prudent management of assets and liabilities as detailed above has led to improvement in profitability. The Bank's Operating Profit was INR 2,595 crore in Q3 FY17 (as against INR 1,704 crore in Q3 FY 16).

The Bank posted a Net Profit of INR 253 crore for Q3 FY 17.

NET INTEREST MARGIN

The Net Interest Margin (NIM) for Domestic operations stood at 2.49% while global margin stood at 2.06%.

Total Restructured Standard Assets of the Bank were INR 14,059 crore as on December 31, 2016. The total Stressed Assets (GNPA + Restructured Standard Assets) were 15.16% of the Gross Advances.

PROVISIONS AND CONTINGENCIES

Provisions and Contingencies (excluding tax provisions) made by the Bank stood at INR 2,079 crore in Q3 FY17. Provisions against NPAs/ Bad Debts written off stood at INR 1,638 crore in Q3 FY17. Provision for tax was INR 263 crore.

The Provision Coverage Ratio (PCR) improved to 64.50% as at December 31, 2016 as compared to 62.95% last quarter and 60.17% in June 2016 and 60.09% in March 16.

CAPITAL ADEQUACY

The CRAR on standalone basis (Basel III) is 12.55% as at December 31, 2016. Out of this, the Tier 1 capital was 10.04% and CET 1 Capital was 9.28%.

ASSET QUALITY

Gross NPA (GNPA) of the Bank marginally reduced to INR 42,642 crore as on December 31, 2016 as compared to INR 42,949 crore as at September 30, 2016. The Gross NPA ratio stood at 11.40% as compared to 11.35% as at September 30, 2016. The corresponding figures of the Net NPA ratio stood at 5.43% and 5.46% respectively.

http://www.bankofbaroda.com/download/Final_Press_Release_Q3_FY_2017_February_10_2017.pdf

# Reportal: a vast archive of corporate documents from listed companies around the world www.reportaldata.com #

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Latest Research

Financial Stability of Public Sector Banks in India

Dr. Tawar Arun

Abstract

Savings are deposited, on that basis Loans are provided to people for their consumption, at the same time banks also create money and expand its business. At present, Competition among public, private and foreign banks are being increased by virtue of Globalisation. Every bank is trying to attract our client through excellent services. There is no doubt that private bank such as ICICI and HDFC are the topmost banks in India. However, SBI and its associate's banks are also in topmost position. Similarly, such type of competition it can be also within public or private banks in India. There are total 27 public banks in India. Therefore, this paper reflects on whether all banks in public sector are growing in same percentage or not. It also focuses on year-wise variations in selected key ratios. The article considered some key ratios like, credit deposit ratio (CDA), capital adequacy ratio (CAR), return on assets (ROA), NPA (non performing ratio etc.) for analyzing its ability to create optimal use of available resources, require capital for expansion, quality of loans and profit generated by banks. Therefore, The paper analysis all above key ratios of Public banks in India by using statistical tools (Mean, Standard deviation and Analysis of Variance etc.).

http://www.indianjournals.com/ijor.aspx?target=ijor:ajrbf&volume=7&issue=2&article=006

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The Industry

Monthly Bulletin for December 2016

Fifth Bi-monthly Monetary Policy Statement, 2016-17 Resolution of the Monetary Policy Committee (MPC), Reserve Bank of India

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to:

keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 per cent.

Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

The decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016- 17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below.

Assessment

2. Global growth picked up modestly in the second half of 2016, after weakening in the first half. Activity in advanced economies (AEs) improved hesitantly, led by a rebound in the US. In the emerging market economies (EMEs), growth has moderated, but policy stimulus in China and some easing of stress in the larger commodity exporters shored up momentum. World trade is beginning to emerge out of a trough that bottomed out in July-August and shows signs of stabilising. Inflation has ticked up in some AEs, though well below target, and is easing in several EMEs. Expectations of reflationary fiscal policies in the US, Japan and China, and the waning of downward pressures on EMEs in recession are tempered by stillprevalent political risks in the euro area and the UK, emerging geo-political risks and the spectre of financial market volatility.

3. International financial markets were strongly impacted by the result of the US presidential election and incoming data that raised the probability of the Federal Reserve tightening monetary policy. As bouts of volatility fuelled a risk-off surge into US equities and out of fixed income markets, a risk-on stampede pulled out capital flows from EMEs, plunging their currencies and equity markets to recent lows even as bond yields hardened in tandem with US yields. The surge of the US dollar from late October intensified after the election results and triggered sizable depreciations in currencies around the world. Commodity prices firmed up across the board from mid-November on an improvement in the outlook for demand following the US election results, barring gold which lost its safe haven glitter to the ascendant US dollar. Crude prices have firmed after the OPEC's decision to cut output.

4. On the domestic front, the growth of real gross value added (GVA) in Q2 of 2016-17 turned out to be lower than projected on account of a deeper than expected slowdown in industrial activity. Manufacturing slowed down both sequentially and on an annual basis, with weak demand conditions and the firming up of input costs dragging down the profitability of corporations. Gross fixed capital formation contracted for the third consecutive quarter. Although government final consumption expenditure slowed sequentially, it supported private final consumption expenditure, the mainstay of aggregate demand. The contribution of net exports to aggregate demand remained positive, but on account of a sharper contraction in imports relative to exports.

5. Turning to Q3, the Committee felt that the assessment is clouded by the still unfolding effects of the withdrawal of specified bank notes (SBNs). The steady expansion in acreage under rabi sowing across major crops compared to a year ago should build on the robust performance of agriculture in Q2. By contrast, industrial activity remains weak. Among the core industries in the index of industrial production (IIP), the output of coal contracted in October due to subdued demand, while the production of crude oil and natural gas shrank under the binding constraint of structural impediments. The production of cement, fertilisers and electricity continued to decelerate, reflecting the sluggishness in underlying economic activity. On the other hand, steel output has recorded sustained expansion following the application of countervailing duties. Refinery output accelerated on the back of a pick-up in exports and capacity additions. The withdrawal of SBNs could transiently interrupt some part of industrial activity in November-December due to delays in payments of wages and purchases of inputs, although a fuller assessment is awaited. In the services sector, the outlook is mixed with construction, trade, transport, hotels and communication impacted by temporary SBN effects, while public administration, defence and other services would continue to be buoyed by the 7th Central Pay Commission (CPC) award and one rank one pension (OROP). GVA by financial services is expected to receive a short-term boost from the large inflow of low-cost deposits.

6. Retail inflation measured by the headline consumer price index (CPI) eased more than expected for the third consecutive month in October, driven down by a sharper than anticipated deflation in the prices of vegetables. Underlying this softer reading, however, was an upturn in momentum as prices rose month-on-month across the board. Still elevated prices of sugar and protein-rich items, coupled with a turning up of prices of cereals, pulses and processed foods pushed up the momentum of food prices, which partly offset the moderation in food inflation brought about by a strong favourable base effect. In the fuel category, inflation eased with the decline in LPG prices on an annual basis and a fall in electricity prices from a month ago. Inflation excluding food and fuel continues to show strong persistence. Although housing and personal care inflation softened marginally, the steady rise in inflation in respect of education, medical and health services, and transport and communication has imparted stickiness to inflation in this category.

7. Liquidity conditions have undergone large shifts in Q3 so far. Surplus conditions in October and early November were overwhelmed by the impact of the withdrawal of SBNs from November 9. Currency in circulation plunged by 7.4 trillion up to December 2; consequently, net of replacements, deposits surged into the banking system, leading to a massive increase in its excess reserves. The Reserve Bank scaled up its liquidity operations through variable rate reverse repo auctions of a wide range of tenors from overnight to 91 days, absorbing liquidity (net) of 5.2 trillion. The Reserve Bank allowed oil bonds issued by the Government as eligible securities under the LAF. From the fortnight beginning November 26, an incremental CRR of 100 per cent was applied on the increase in net demand and time liabilities (NDTL) between September 16, 2016 and November 11, 2016 as a temporary measure to drain excess liquidity from the system. From November 28, liquidity absorption fell back and the Reserve Bank undertook variable rate repo auctions of 3.3 trillion on November 28. As expected, money market conditions tightened thereafter and the weighted average call rate (WACR) traded near the upper bound of the LAF corridor on that day before dropping back to the policy repo rate on November 30. All other rates in the system firmed up in sympathy, with term premia getting restored gradually. Through this episode, active liquidity management prevented the WACR from falling even to the fixed rate reverse repo rate, the lower bound of the LAF corridor. Liquidity management was bolstered by an increase in the limit on securities under the market stabilisation scheme (MSS) from 0.3 trillion to 6 trillion on November 29. There have been three issuances of cash management bills under MSS for 1.4 trillion by December 6, 2016.

8. In the external sector, India's merchandise exports rebounded in September and October. The return to positive territory was supported by a pick-up in both POL and non-POL exports. After a prolonged fall for 22 months, imports rose in October on the back of a sharp rise in the volume of gold imports and higher payments for POL imports. Non-oil non-gold import growth also turned positive after a gap of seven months. For the period April-October, the merchandise trade deficit was lower by US $ 25 billion from its level a year ago. Accordingly, the current account deficit is likely to remain muted, notwithstanding some loss of remittances and software exports under invisibles. Net foreign direct investment has remained reasonably robust, with more than half going to manufacturing, communication and financial services. By contrast, portfolio investment outflows of the order of US $ 7.3 billion occurred in October-November from both debt and equity markets - as in peer EMEs across the board - reflecting a strong home bias triggered by the outcome of the US presidential election and the nearcertainty of monetary policy tightening in the US. The level of foreign exchange reserves was US$ 364 billion on December 2, 2016.

Outlook

9. The Committee took note of the upturn in the prices of several items that is masked by the easing of inflation on base effects during October. Despite some supply disruptions, the abrupt compression of demand in November due to the withdrawal of SBNs could push down the prices of perishables in the reading that becomes available in December. On the other hand, prices of wheat, gram and sugar have been firming up. While discretionary spending on goods and services in the CPI excluding food and fuel - constituting 16 per cent of the CPI basket - could have been affected by restricted access to cash, the prices of these items may weather these transitory effects as they are normally revised according to pre-set cycles. Prices of housing, fuel and light, health, transport and communication, pan, tobacco and intoxicants, and education - together accounting for 38 per cent of the CPI basket - may remain largely unaffected. Going forward, base effects are expected to reverse and turn unfavourable in December and February. If the usual winter moderation in food prices does not materialise due to the disruptions, food inflation pressures could re-emerge. Furthermore, CPI inflation excluding food and fuel has been resistant to downward impulses and could set a floor to headline inflation. With the OPEC's agreement to cut production, crude prices may firm up in the coming months. Global developments, especially as financial markets factor in the future stance of US monetary and fiscal policy, could impart volatility to the exchange rate thereby feeding into inflation. The withdrawal of SBNs could result in a possible temporary reduction in inflation of the order of 10-15 basis points in Q3. Taking these factors into account, headline inflation is projected at 5 per cent in Q4 of 2016-17 with risks tilted to the upside but lower than in the October policy review. The fuller effects of the house rent allowances under the 7th CPC award are yet to be assessed, pending implementation, and have not been reckoned in this baseline inflation path (Chart 1).

10. The outlook for GVA growth for 2016-17 has turned uncertain after the unexpected loss of momentum by 50 basis points in Q2 and the effects of the withdrawal of SBNs which are still playing out. Downside risks in the near term could travel through two major channels: (a) short-run disruptions in economic activity in cash-intensive sectors such as retail trade, hotels & restaurants and transportation, and in the unorganised sector; (b) aggregate demand compression associated with adverse wealth effects. The impact of the first channel should, however, ebb with the progressive increase in the circulation of new currency notes and greater usage of non-cash based payment instruments in the economy, while the impact of the second channel is likely to be limited.

11. The liquidity management framework was refined in April with the objective of meeting shortterm liquidity needs through regular facilities, frictional and seasonal mismatches through finetuning operations and more durable liquidity needs for facilitating growth by modulating net foreign assets and net domestic assets. The Reserve Bank has conducted liquidity management consistent with this framework, progressively moving the system level ex ante liquidity conditions to close to neutrality. In Q3 up to early November, liquidity conditions remained in mild surplus mode. The Reserve Bank injected liquidity of 1.1 trillion through OMO purchases during the fiscal year so far, including an OMO purchase auction of 100 billion in October. Although the replacement of SBNs has engendered large surplus liquidity warranting exceptional operations, this needs to be seen as transitory. The Reserve Bank is committed to conducting liquidity operations in pursuit of the objectives of the revised framework put in place in April to restore system level liquidity to a position of neutrality as the surplus liquidity pressures abate.

12. In the view of the Committee, this bi-monthly review is set against the backdrop of heightened uncertainty. Globally, the imminent tightening of monetary policy in the US is triggering bouts of high volatility in financial markets, with the possibility of large spillovers that could have macroeconomic implications for EMEs. In India, while supply disruptions in the backwash of currency replacement may drag down growth this year, it is important to analyse more information and experience before judging their full effects and their persistence - short-term developments that influence the outlook disproportionately warrant caution with respect to setting the monetary policy stance. If the impact is transient as widely expected, growth should rebound strongly. Turning to inflation, food prices other than vegetables are exhibiting sustained firmness and a pick-up in momentum. Another disconcerting feature of recent developments is the downward inflexibility in inflation excluding food and fuel which could set a resistance level for future downward movements in the headline. Moreover, volatility in crude prices and the surge in financial market turbulence could put the inflation target for Q4 of 2016-17 at some risk. Given these indicators of underlying inflation, it is appropriate to look through the transitory but unclear effects of the withdrawal of SBNs while setting the monetary policy stance. On balance, therefore, it is prudent to wait and watch how these factors play out and impinge upon the outlook. Accordingly, the policy repo rate has been kept on hold in this review, while retaining an accommodative policy stance.

13. Six members voted in favour of the monetary policy decision. The minutes of the MPC's meeting will be published on December 21, 2016. The next meeting of the MPC is scheduled on February 7 & 8, 2017 and its resolution will be placed on the Reserve Bank's website on February 8, 2017.

https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/DBUL10122016A4B9BAE52CA049029A45C80D22F25AB6.PDF

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Leading Companies

Axis Bank (NSE: AXISBANK)

Axis Bank announces financial results for quarter and half year ended 30th September 2016

Results at a Glance

Asset Quality metrics rise, driven by Watch List:

o The Bank's Gross NPA and Net NPA rose to 4.17% and 2.02% respectively in Q2 FY17.

o Watch List loans as on September 30, 2016 reduced by 32% quarter on quarter and stood at 13,789 crores.

o The Watch List has reduced to 3.5% of customer assets in September 2016, from 5.4% in

June 2016 and 6.2% in March 2016.

Profit After Taxes de-grows, stable operating performance:

o Net Profit for Q2FY17 & H1FY17 stood at 319 crores and 1,875 crores respectively and reported a drop of 83% YOY and 52% YOY respectively.

o Operating Profit grew by 13% YOY while Net Interest Income grew by 11% YOY.

o Net Interest Margin for Q2 FY17 stood at 3.64%.

o Other Income (including fee and trading profits) grew 24% YOY.

Growth continues to be strong:

o Net Advances grew 18% YOY, led by Retail, which grew 25% YOY.

Retail business continues to thrive:

o CASA grew 19% YOY and constituted 45% of Total Deposits as on 30th September 2016.

o Savings Account balances grew 20% YOY and stood at 107,839 crores as on 30th September 2016.

o Retail Advances accounted for 42% of Net Advances.

o Retail Fee Income in Q2FY17 grew 17% YOY and constitutes 43% of Total Fee Income.

The Bank's Capital Adequacy Ratio (CAR) remains healthy. Under Basel III, Total CAR & Tier I CAR (including the net profit for H1FY17) stood at 15.20% and 12.03% respectively.

The Board of Directors of Axis Bank Limited approved the financial results for the quarter and half-year ended 30th September 2016 at its meeting held in Mumbai on Tuesday, 25th October 2016. The accounts have been subjected to a Limited Review by the Bank's Statutory Auditors.

Profit & Loss Account: Period ended 30th September 2016

Operating Profit and Net Profit

Operating Profit for Q2FY17 and H1FY17 grew by 13% and 11% to 4,100 crores and 8,570 crores respectively. The Net Profit for Q2FY17 and H1FY17 contracted by 83% and 52% YOY to 319 crores and 1,875 crores respectively.

Net Interest Income and Net Interest Margin

The Bank's Net Interest Income (NII) grew by 11% YOY to 4,514 crores during Q2FY17 from 4,062 crores in Q2FY16. Net interest margin for Q2FY17 stood at 3.64%. NII for H1FY17 also rose 11% YOY to 9,031 crores from 8,118 crores during H1FY16.

Other Income

Other income (comprising fee, trading profit and miscellaneous income) for Q2FY17 stood at 2,540 crores as against 2,041 crores during the same period last year. During H1FY17, other income grew 22% YOY and stood at 5,278 crores. Fee income for Q2FY17 grew 7% YOY to reach 1,935 crores. The key driver of fee income growth was Retail Banking, which grew by 17% YOY and constituted 43% of the Bank's total fee income. Transaction Banking fee performance too was healthy and grew 8% YOY to constitute 26% of the total fee income of the Bank. Trading profits for the quarter grew 220% YOY and stood at 536 crores. During H1FY17, fee income grew 9% YOY primarily driven by 18% YOY growth in Retail fee and 12% YOY growth in Transaction Banking.

Balance Sheet: As on 30th September 2016

The Bank's Balance Sheet grew 17% YOY and stood at 557,650 crores as on 30th September 2016. The Bank's Advances grew 18% YOY to 353,170 crores as on 30th September 2016. Retail Advances grew 25% YOY and stood at 149,284 crores and accounted for 42% of the Net Advances of the Bank. Corporate credit grew 14% YOY and stood at 158,029 crores; and accounted for 45% of Net Advances. SME Advances grew 14% YOY and stood at 45,857 crores. The book value of the Bank's investments portfolio as on 30th September 2016, was 124,590 crores, of which 92,196 crores were in government securities, while 23,852 crores were invested in corporate bonds and 8,542 crores in other securities such as equities, preference shares, mutual funds, etc.

CASA Deposits as on 30th September 2016 constituted 45% of total deposits. Savings Account balances grew at a strong 20% YOY, up from the 12% YOY growth reported for the period ended 30th September 2015. CASA, on a daily average basis, recorded a growth of 18%, in which both Savings Bank Deposits and Current Account Deposits recorded a growth of 18% YOY. The proportion of CASA on a daily average basis remained at the same level as the previous quarter and constituted 41% of total deposits.

CASA and Retail Term Deposits constituted 81% of Total Deposits as on 30th September 2016 compared to 80% as on 30th September 2015.

Capital Adequacy and Shareholders' Funds

The shareholders' funds of the Bank grew 10% YOY and stood at 53,823 crores as on 30th September 2016. The Bank is well capitalised. Under Basel III, the Capital Adequacy Ratio (CAR) and Tier I CAR (including net profit for H1FY17) as on 30th September 2016 was 15.20% and 12.03% respectively.

Asset Quality

As on 30th September 2016, the Bank's Gross NPA and Net NPA levels were 4.17% and 2.02% respectively, as against 2.54% and 1.08% respectively as on 30th June 2016.

As on 30th September 2016, the Bank's Gross NPA was 16,379 crores against 9,553 crores as on 30th June 2016. During the quarter, the Bank added 8,772 crores to Gross NPAs, and Recoveries and upgrades were 1,073 crores and write-offs during the quarter were 873 crores.

As on 30th September 2016, loans outstanding on the Bank's Watch List reduced 32% over the previous quarter and stood at 13,789 crores. The reduction in the Watch List primarily represents slippages to NPAs amounting to 7,288 crores, which comprises 89% of the total corporate credit slippages. The Watch List has reduced to 3.5% of customer assets in September 2016, from 5.4% in June 2016 and 6.2% in March 2016.

The cumulative value of net restructured assets as on 30th September 2016 stood at 6,702 crores, constituting 1.74% of net customer assets, compared to 7,363 crores, constituting 1.99% of net customer assets as on 30th June 2016.

During the quarter, the Bank sold assets with a gross outstanding of 2,316 crores and a net book value of 1,128 crores to ARCs against net sale consideration of 822 crores comprising 159 crores in cash and 663 crores in Security Receipts value.

Network

During Q2FY17, the Bank added 100 branches to its network across the country. As on 30th September 2016, the Bank had a network of 3,106 domestic branches and extension counters situated in 1,920 centres compared to 2,743 domestic branches and extension counters situated in 1,796 centres last Year. As on 30th September 2016, the Bank had 13,448 ATMs and 1,210 cash recyclers spread across the country.

International Business

The Bank has nine international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai; representative offices at Dubai, Abu Dhabi, Dhaka and an overseas subsidiary at London, UK. The international offices focus on corporate lending, trade finance, syndication and investment banking and liability businesses. The total assets under overseas branches were USD 8.67 billion as on 30th September 2016.

https://www.axisbank.com/docs/default-source/press-releases/axis-bank-announces-financial-results-for-quarter-and-half-year-ended-30th-september-2016.pdf?sfvrsn=8

Bank of Baroda (NSE: BANKBARODA)

Bank of Baroda Announces Financial Results for Q3 FY 2017 and 9M (Apr-Dec 2016)

February 10, 2017

Mumbai

Highlights (Standalone Basis)

Operating profit of INR 2,595 crore, up by 52.29% Y-o-Y.

Profit after Tax of INR 253 crore.

Net Interest Income (NII) up by 15.86% Y-o-Y.

Non-interest income up by 59.48% Y-o-Y.

Gross NPA at INR 42,642 crore during the quarter end was below June 2016 and September 2016 levels. GNPA ratio at 11.40%.

Net NPA at INR 19,006 crore also down on Q-o-Q basis by 1.73%. Net NPA ratio at 5.43%.

Provision Coverage Ratio (PCR) improved to 64.50% as at December 31, 2016 from 62.95% as at September 30, 2016 and 60.17% & 60.09% as at June 30, 2016 and March 31, 2016 respectively.

Domestic CASA grew by 43.19% (on Y-o-Y basis) and 27.94% (on Q-o-Q basis) driven by growth in both Current accounts and Savings Bank deposit.

Continued focus on recovery and collections, portfolio rebalancing in international book and improving profitability.

CRAR (Basel III) stood at 12.55% with Tier I ratio of 10.04% and CET-1 of 9.28%, excluding profits of 9 months period ended December 31, 2016.

Bank of Baroda announced its unaudited reviewed results for the Q3 of FY 2017, following the approval of its Board of Directors on February 10, 2017.

BUSINESS

Percentage of CASA deposits to total domestic deposits as at December 31, 2016 was 40.46% as against 34.23% as at September 30,2016.

INCOME

EXPENSES

PROFIT

The Bank posted a Net Profit of INR 253 crore for Q3 FY 17.

NET INTEREST MARGIN

The Net Interest Margin (NIM) for Domestic operations stood at 2.49% while global margin stood at 2.06%.

Total Restructured Standard Assets of the Bank were INR 14,059 crore as on December 31, 2016. The total Stressed Assets (GNPA + Restructured Standard Assets) were 15.16% of the Gross Advances.

PROVISIONS AND CONTINGENCIES

The Provision Coverage Ratio (PCR) improved to 64.50% as at December 31, 2016 as compared to 62.95% last quarter and 60.17% in June 2016 and 60.09% in March 16.

CAPITAL ADEQUACY

The CRAR on standalone basis (Basel III) is 12.55% as at December 31, 2016. Out of this, the Tier 1 capital was 10.04% and CET 1 Capital was 9.28%.

ASSET QUALITY

About Bank of Baroda

Bank of Baroda ("The Bank") established on July 20, 1908 is an Indian state-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda), in Gujarat, India.

Bank of Baroda is one of India's largest banks with a strong domestic presence spanning 5,382 branches and 10,404 ATMs and Cash Recyclers supported by selfservice channels. The Bank has a significant international presence with a network of 107 branches/ offices subsidiaries, spanning 24 countries. The Bank has wholly owned subsidiaries including BOBCARDS and BOB Capital Markets. Bank of Baroda also has joint ventures for life insurance with IndiaFirst Life Insurance and for asset management with Baroda Pioneer Asset Management. The Bank owns 98.57% in Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.

http://www.bankofbaroda.com/download/Final_Press_Release_Q3_FY_2017_February_10_2017.pdf

Bank of India (NSE: SBIN)

Performance during Q3: FY16-17

Performance of Treasury operations

Treasury Operating Income stood at the level of Rs 3,610.02 Cr in Q3 FY17.

Treasury Non-interest income has increased to Rs1,272.76 Cr in Q3 FY17 as against Rs 500.59 Cr in Q3 FY16, thereby registering a Y-o-Y growth of 154.25%.

Total size of Bank's Domestic Investment as on 31st Dec., 2016 stood at Rs. 1,51,829 Cr.

As on 31st Dec., 2016, the share of SLR-Securities in Total Investment is 91.18 %.

The bank had 57.64% of SLR-Securities in HTM and 42.36 % in AFS as on 31st Dec., 2016.

The percent of SLR to NDTL as on 31st Dec. 2016 was at 24.66% (excluding CMBs* of Rs 32,071.55 Cr) & 32.09% (including CMBs* of Rs 32,071.55 Cr)

As on 31st Dec., 2016, the Modified Duration of AFS Investment was 2.21 and that of HTM securities was 4.95.

In Q3, FY17 amount of Rs.5.39 Cr is provided towards additional depreciation on Investments.

http://www.bankofindia.co.in/pdf/Analyst-Presentation-December-2016.pdf

Canara Bank (NSE: CANBK)

Press Release Financial Results December 2016

Major Highlights

- Net profit for Q3 FY17 rose to 322 crore, up by 279% y.o.y.

- Gross profit increased to 1981 crore, up by 27.63% y.o.y.

- Total expenditure declined by 3.81% y.o.y.

- Interest expenses,including interest paid on deposits declined by 9.03% y.o.y.

- Cost of deposits came down to 6.31% from 7.01% last year.

- CASA Deposits increased to 1.54 lakh crore, up by 30.12% y.o.y.

- CASA share (domestic) improved to 32.12% from 25.71% last year.

- Non-Interest Income grew by 53.32% to 1792 crore.

- % share of non-interest income in total income improved to 14.83 %, up from 9.70% a year ago.

- Gross NPA Ratio marginally up at 9.97 % from 9.81% at September 2016.

- Net NPA ratio at 6.72% compared to 6.69% as at September 2016.

- Cash Recovery during the quarter at 1021 crore taking the cumulative figure to 2979 crore for the nine months.

- Provision Coverage ratio at 52.52 %, up from 51.75% in September 2016.

- Net Interest Margin (NIM) (Domestic) at 2.34% and NIM (Global) at 2.19%.

- ROA improved to 0.22% and ROE improved to 4.58%.

- Capital adequacy ratio improved to 12.28%, up from 11.54% a year ago.

- Global Business reached 8.42 lakh crore comprising global deposits of 5.10 lakh crore and net advances of 3.32 lakh crore.

- Sustained growth in retail assets (y.o.y)- Agriculture (9.83%), MSME (6.34%), Retail Lending (13.47%), Direct Housing (16.11%), Vehicle (14.98%), Education (14.85%) and Other Personal loans (13.33%).

- Total number of branches at 5972 and Number of ATMs at 10394.

- 40.31 lakhs Mobile Banking and 27.08 lakhs Net Banking users.

Income, Expenditure & Profit- Q3 FY17

- Total income stood at 12079 crore.

- Non-interest income increased to 1792 crore, with robust growth of 53.32% y.o.y.

- Total expenditure declined by 3.81% to 10098 crore.

- Operating expenses of the Bank stood at 2224 crore.

- Gross profit at 1981 crore, increased by 27.63% y.o.y

- Total provision made in Q3 FY17 at 1659 crore compared to 1467crore in Q3 FY16.

- The provision for NPAs at 1487 crore against 1432 crore in Q3FY16.

Nine months (9M) FY17 Performance

- Operating profit increased to 5941 crore with a y.o.y growth of 8.02%.

- Net Profit for nine months FY17 aggregated to 908 crore.

- Total income stood at 36053 crore, including 22365 crore income from loans/advances.

- Total Expenses declined by 3.74 % to 30112 crore.

- Non-interest income for the nine months ended increased by 47.71% to 5158 crore.

Business Performance

- Global Business reached 841964 crore.

- Global Deposits reached 510327 crore.

- Global Advances (Net) stood at 331636 crore.

- Overseas business constituted 7.26 % of the total business. Total business of 8 overseas branches stood at 61111crore.

- Clientele accounts increased to 7.63 crore from 7.10 crore last year.

Deposit Portfolio- Thrust on CASA & Retail Deposits

- CASA deposits increased to 153704 crore, with a y.o.y growth of 30.12%.

- CASA share (domestic) improved to 32.12% from 25.71% a year ago.

- Retail term deposits increased to 197560 crore with a y.o.y growth of 19.08%.

- Share of retail term deposits in term deposits increased to 62.30% compared to 51.41% last year.

Credit Portfolio- Thrust on Retail Assets

- Retail Assets (Agriculture, MSMEs, Housing & Other Retail Schemes) constitutes 59.36% of the Bank's total credit portfolio, increased from 54.16% a year ago.

- Advances to Priority Sector increased to 153632crore, with 7.70% y.o.y growth.

- Advances to Agriculture grew by 9.83% y.o.y to 71457 crore.

- Credit to Micro, Small and Medium Enterprises (MSMEs) recorded a y.o.y growth of 6.34% to 70442 crore.

- Credit to M&SE segments reached 50518 crore. The number of Micro Enterprises Accounts recorded a growth of 8.72%.

- 27.72 lakh women beneficiaries assisted to the tune of 43705 crore.

- Achieved the mandated targets in respect of Total Priority (48.06% against 40% ANBC norm), Agriculture (21.39% against 18% ANBC norm), credit to specified minority communities (17.39% against 15% norm) and weaker sections (14.53% against 10% ANBC norm). Credit to women beneficiaries (14.18% against 5% norm).

- Retail Lending Portfolio increased to 54975 crore, with a y-o-y growth of 13.47%.

- Housing Loan (Direct) Portfolio increased to 22415 crore, with a y-o-y growth of 16.11%.

- Vehicle loans and other personal loans recorded good growth of 14.98% ( 4748 crore) and 13.34% ( 13204 crore) respectively.

- Education Loan Portfolio increased to 7517 crore, with a y.o.y growth of 14.85%, covering over 2.99 lakh students.

Capital Adequacy

- Capital Adequacy Ratio as per Basel III norms improved to 12.28%, up from 11.54% a year ago, with CET 1 ratio at 8.11% & Tier I ratio at 9.01%.

- Government shareholding is at 66.30%.

- Comfortable capital position for assets growth.

Asset Quality

- Net NPA ratio at 6.72% compared to 6.69 as at September 2016.

- Gross NPA ratio moderately increased to 9.97% from 9.81% as on September 2016

- Cash Recovery during the quarter at 1021 crore taking the cumulative figure to 2979

crore for the nine months.

- Outstanding restructured portfolio at 22276 crore, constituted 6.46 % of gross advances.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

- 62.72 lakhs accounts opened under PMJDY, securing CASA deposits of 2143 crore.

- 3.98 lakh PMJDY account holders have been provided with overdraft facility, amounting to 67.61 crore.

- 71 Financial Literacy Centres (FLCs) opened at District/Block levels, educating 10.76 lakh persons.

- 172 lakh residents have been enrolled under Aadhaar.

- 205.38 lakh accounts were Aadhaar seeded, of which 38.45 lakh accounts under PMJDY accounts.

- As a part of grievances redressal mechanism for customers, the Bank established Toll free number 1800 425 11222.

Social Security Schemes

- 63.47 lakhs enrolments have been done under both Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY- 18.38 lakhs) & Pradhan Mantri Suraksha Bima Yojana (PMSBY- 45.08 lakhs) as at December 2016.

- Under Atal Pension Yojana (APY) the Bank has cumulatively mobilized 1.12 lakhs accounts.

- Under Sukanya Samriddhi Yojana, 17393 accounts have been mobilized. Pradhan Mantri Mudra Yojana (PMMY)

- Under Mudra Yojana, the Bank disbursed 2807 crore, covering 266143 accounts as at December 2016.

A Holistic Approach to Financial Inclusion (FI)

- The Bank has provided banking facilities in all the allotted 10049 villages.

- Covered all 3962 allotted SSAs by opening of 875 Brick & Mortar branches and engaging Business Correspondent agents.

- Besides FI branches, the Bank has opened 473 Ultra Small Branches.

- Financial Inclusion branches have garnered business of 14955 crore. The CASA component of FI branches stood at 59%, amounting to 4388 crore.

- 18 Micro Finance branches have garnered a total business of 523 crore under Urban Financial Inclusion.

- 163.50 lakh BSBD accounts opened with outstanding CASA deposits of 5476 crore.

- The Bank has formed 531 farmers' clubs.

- 22556 Self Help Groups (SHGs) have been formed and 24574 SHGs have been credit linked to the extent of 698 crore. Exposure under SHGs increased to 2310 crore under 1.19 lakh SHGs.

- Business Correspondent Agents have done 62 lakh transactions, amounting to 1005 crore during the year till December 2016.

Enhanced Delivery Channels & Digital Footprints

- The total branch network of the Bank increased to 5972, including 8 overseas branches (London, Leicester, Johannesburg, New York, Hong Kong, Manama, Shanghai and Dubai).

- Total number of ATMs further expanded to 10394. 187 e-lounges were functional across major cities.

- Debit card base rose to 3.12 crore.

- 40.31 lakhs Mobile Banking and 27.08 lakhs Net Banking users.

- Ratio of e-transactions stood at 51.26%.

- Major branch transformation with 1211 Shikhar Branches for better customer service to drive business.

New Products & Important Customer-friendly Technology Initiatives

- Canara Empower, Unified Payment Interface (UPI) for single platform in accessing multiple bank accounts.

- Canara mserve that enables customer to Hot list and Block/Unblock Cards.

- Canara Cart, an umbrella app containing all mobile based solutions.

- Canara Swipe, all missed call soloution in single Application.

- Canara GeoLocate Mobile App for locating Branch and ATMs

- Green Pin in ATMs to generate Debit Card PIN at the time of fresh issuance of Card and also when the customer forgets the PIN.

- CANARA TECH Support for structured resolution of queries related to Tech products.

Awards & Accolades

The Bank was conferred with the following Major Awards in Q3FY17:

- "SKOCH ORDER OF MERIT" and "SKOCH SILVER" Awards for Bancassurance & Empower UPI Mobile App during the 46th Skoch Summit.

- Indy Wood CSR Excellence Award, 2016, for outstanding achievement in Corporate Social Responsibility (CSR) by Indywood Film Carnival.

- 4th SME excellence award by ASSOCHAM.

- FICCI CSR AWARD- Social Responsible Bank under Women empowerment.

- "Star Performer Award" in the 31st Depository Participant Conference.

Goals: March 2017

- Thrust on Retail Business & Asset Quality- CASA & retail deposits, retail credit, fee income, containing NPA, recovery & upgradation and improving operational financial ratios, such as, NIM, RoA, RoE and Cost-to-Income.

http://www.canarabank.com/media/3984/press-release-q3fy17-20012017.pdf

Central Bank of India (NSE: CENTRALBK)

Performance Highlights for the 4th Quarter and the Financial Year ended 31st March, 2016

Total Business of the Bank increased to Rs. 4,56,337 crore from Rs. 4,50,539 crore in March 2015, recording Y-o-Y growth of 1.29 %.

Total Deposits of the Bank increased to Rs. 2,66,184 crore from Rs. 2,55,572 crore in March 2015, recording Y-o-Y growth of 4.15 %.

Total Advances stood at Rs. 1,90,152 crore against Rs. 1,94,967 crore in March 2015, recording Y-o-Y decline of 2.47 %.

CASA increased to Rs. 94,455 crore from Rs. 87,012 crore in March 2015, recording Y-o-Y growth of 8.55 % . Share of CASA in total deposits stood at 35.48 % as against 34.05 % in March 2015.

Core Deposits increased to Rs. 2,51,376 crore from Rs. 2,28,137 crore in March 2015, recording Y-o-Y growth of 10.19 %.

Total Income in FY 2015-16 was Rs. 27,826 crore.

Provision Coverage Ratio stood at 51.52 % in March 2016.

CRAR under BASEL II is at 11.07 % with Tier I at 7.44 % whereas CRAR under BASEL III is 10.41 % with Tier I at 8.20 %.

NIM stood at 2.75 % in FY 2015-16.

https://www.centralbankofindia.co.in/upload/Performance%20Highlights%20for%20the%204th%20Quarter%20and%20the%20Financial%20Year%20ended%2031st%20March2016.pdf

HDFC Bank (NYSE: HDB)

HDFC Bank Limited Financial Results (Indian GAAP) for the Quarter and Nine Months Ended December 31, 2016

The Board of Directors of HDFC Bank Limited approved the Bank's (Indian GAAP) results for the quarter and nine months ended December 31, 2016 at their meeting held in Mumbai on Tuesday, January 24, 2017. The accounts have been subjected to a 'Limited Review' by the statutory auditors of the Bank.

FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended December 31, 2016

The Bank's total income for the quarter ended December 31, 2016 was 20,748.3 crore, up from 18,283.3 crore for the quarter ended December 31, 2015. Net revenues (net interest income plus other income) increased by 15.2% to 11,451.8 crore for the quarter ended December 31, 2016 as against 9,940.7 crore for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended December 31, 2016 grew by 17.6% to 8,309.1 crore, from 7,068.5 crore for the quarter ended December 31, 2015, driven by average assets growth of 18.6% and a net interest margin for the quarter of 4.1%.

Other income (non-interest revenue) at 3,142.7 crore was 27.4% of the net revenues for the quarter ended December 31, 2016 and grew by 9.4% over 2,872.2 crore in the corresponding quarter ended December 31, 2015. The four components of other income for the quarter ended December 31, 2016 were fees & commissions of 2,206.8 crore ( 2,004.8 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of 297.2 crore ( 277.4 crore for the corresponding quarter of the previous year), gain on revaluation / sale of investments of 398.6 crore ( 327.9 crore in the corresponding quarter of the previous year) and miscellaneous income including recoveries of 240.0 crore ( 262.1 crore for the corresponding quarter of the previous year).

Operating expenses for the quarter ended December 31, 2016 were 4,842.5 crore, an increase of 15.2% over 4,204.8 crore during the corresponding quarter of the previous year. The core cost-to-income ratio for the quarter was 43.8% as against 43.7% for the corresponding quarter ended December 31, 2015.

Provisions and contingencies for the quarter ended December 31, 2016 were 715.8 crore (consisting of specific loan loss provisions 694.4 crore, general provisions 9.3 crore, and other provisions 12.1 crore) as against 653.9 crore (consisting of specific loan loss provisions 601.5 crore, general provisions 49.9 crore and other provisions 2.5 crore) for the corresponding quarter ended December 31, 2015. Profit before tax was up 16.0% to 5893.5 crore. After providing 2,028.1 crore for taxation, the Bank earned a net profit of 3,865.3 crore, an increase of 15.1% over the quarter ended December 31, 2015.

Balance Sheet: As of December 31, 2016

Total balance sheet size as of December 31, 2016 was 828,020 crore as against 699,797 crore as of December 31, 2015. Total deposits as of December 31, 2016 were 634,705 crore, an increase of 21.1% over December 31, 2015. This was after considering maturities of about US$ 3 billion of Foreign Currency Non-Resident (FCNR) deposits raised (and swapped into rupees with RBI at a concessional rate) during the quarter ended December 31, 2013. CASA deposit growth saw a spurt largely attributable to the demonetisation exercise, with current account deposits growing by 36.7% over the previous year to reach 101,239 crore and savings account deposits growing by 37.8% over the previous year to reach 186,634 crore. Time deposits were at 346,832 crore, an increase of 10.3% over the previous year resulting in CASA proportion of 45% as on December 31, 2016.

Total advances as of December 31, 2016 were 495,043 crore after considering repayments of about US$ 2 billion of overseas loans linked to FCNR deposits. The Bank's domestic loan portfolio of 477,415 crore grew at 17.5% on a year on year basis. As per the Bank's internal business classification, the domestic retail loans and wholesale loans grew by 17.8% and 16.8% respectively. As per regulatory (Basel 2) segment classification the growth rates were 21.5% for domestic retail loans and 13.0% for wholesale loans. The domestic loan mix as per Basel 2 classification between retail:wholesale was 55:45.

Nine Months ended December 31, 2016

For the nine months ended December 31, 2016, the Bank earned a total income of 60,041.8 crore as against 52,110.6 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2016 were 32,934.4 crore, as against 28,024.0 crore for the nine months ended December 31, 2015, an increase of 17.5%. Net profit for the nine months ended December 31, 2016 was 10,559.6 crore, up by 18.4% over the corresponding nine months ended December 31, 2015.

Capital Adequacy:

The Bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 15.9% as at December 31, 2016 (15.9% as at December 31, 2015) as against a regulatory requirement of 9%. Tier-I CAR was at 13.8% as on December 31, 2016 compared to 13.2% as at December 31, 2015.

NETWORK

As of December 31, 2016, the Bank's distribution network was at 4,555 branches and 12,087 ATMs across 2,597 cities / towns as against 4,281 branches and 11,843 ATMs across 2,505 cities / towns as of December 31, 2015. Of the total branches, 52% are in semi-urban and rural areas. Number of employees increased from 84,619 as of December 31, 2015 to 90,421 as of December 31, 2016.

ASSET QUALITY

Gross non-performing assets (NPAs) were at 1.05% of gross advances as on December 31, 2016, as against 1.02% as on September 30, 2016 and 0.97% as on December 31, 2015. Net non-performing assets were at 0.3% of net advances as on December 31, 2016.

About HDFC BANK

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its 37 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.

The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 20 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.

As of September 30, 2016, the Bank had a distribution network with 4,548 branches and 12,016 ATMs in 2,587 cities/towns. For the quarter ended September 30, 2016, the Bank's total income was INR 199.70 billion (Rs 19,970.9 crore) as against INR 173.24 billion (Rs 17,324.3 crore) for the quarter ended September 30, 2015. Net revenues (net interest income plus other income) were INR 108.94 billion (Rs 10,894.5 crore) for the quarter ended September 30, 2016, as against INR 92.32 billion (Rs 9,232.7 crore) for the corresponding quarter of the previous year. Net Profit for the quarter ended September 30, 2016, was INR 34.55 billion (Rs 3,455.3 crore), up by 20.4% over the corresponding quarter ended September 30, 2015.

Total income for the year ended March 31, 2016, was INR 709.73 billion (Rs 70973.2 crore). Leading Indian and international publications have recognised the bank for its performance and quality.

http://www.hdfcbank.com/htdocs/aboutus/News_Room/pdf/Press-release-Dec16.pdf

ICICI Bank Limited (NYSE: IBN)

Performance Review: Quarter ended December 31, 2016

30% year-on-year growth in savings account deposits; Current and savings account (CASA) ratio at 49.9% at December 31, 2016

18% year-on-year growth in retail portfolio; retail portfolio constituted about 49% of total loans at December 31, 2016

Standalone profit after tax of [INDIAN RUPEE SIGN] 2,442 crore (US$ 360 million) for quarter ended December 31, 2016 (Q3-2017)

Consolidated profit after tax of [INDIAN RUPEE SIGN] 2,611 crore (US$ 384 million) for Q3-2017

Capital adequacy ratios significantly higher than regulatory requirements; total capital adequacy of 16.73% and Tier-1 capital adequacy of 13.33% on standalone basis at December 31, 2016, including profits for the nine months ended December 31, 2016 (9M-2017)

January 31, 2017

The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the quarter ended December 31, 2016.

Profit & loss account

Net interest income was [INDIAN RUPEE SIGN] 5,363 crore (US$ 790 million) in the quarter ended December 31, 2016 (Q3-2017) compared to [INDIAN RUPEE SIGN] 5,453 crore (US$ 803 million) in the quarter ended December 31, 2015 (Q3-2016) and [INDIAN RUPEE SIGN] 5,253 crore (US$ 773 million) in the quarter ended September 30, 2016 (Q2- 2017).

Non-interest income was [INDIAN RUPEE SIGN] 3,939 crore (US$ 580 million) in Q3-2017 compared to [INDIAN RUPEE SIGN] 4,217 crore (US$ 621 million) in Q3-2016. Non-interest income in Q3-2016 included gains of [INDIAN RUPEE SIGN] 1,243 crore (US$ 183 million) relating to sale of shareholding in ICICI Prudential Life Insurance Company (ICICI Life).

Fee income increased 10.3% on a year-on-year basis from [INDIAN RUPEE SIGN] 2,262 crore (US$ 333 million) in Q3-2016 to [INDIAN RUPEE SIGN] 2,495 crore (US$ 367 million) in Q3-2017.

Profit before provisions & tax was [INDIAN RUPEE SIGN] 5,524 crore (US$ 813 million) in Q3- 2017. During Q3-2016 and Q2-2017, there were gains on sale of shareholding in ICICI Life of [INDIAN RUPEE SIGN] 1,243 crore (US$ 183 million) and [INDIAN RUPEE SIGN] 5,682 crore (US$ 836 million) respectively. Excluding these gains, profit before provisions & tax increased by 3.9% on a year-on-year basis and 11.5% on a sequential basis.

Standalone profit after tax was [INDIAN RUPEE SIGN] 2,442 crore (US$ 360 million) for Q3-2017.

Consolidated profit after tax was [INDIAN RUPEE SIGN] 2,611 crore (US$ 384 million) for Q3- 2017.

Operating review

Credit growth

The year-on-year growth in domestic advances was 12%, about seven percentage points higher compared to non-food credit growth for the banking system at December 23, 2016. The Bank continued to achieve strong growth in its retail business, resulting in a year-on-year growth of 18% in the retail portfolio. The retail portfolio constituted about 49% of the loan portfolio of the Bank at December 31, 2016, compared to 44% at December 31, 2015. Loans against Foreign Currency Non-Resident (FCNR) deposits of approximately US$ 870 million in the overseas branches portfolio matured during the quarter. Total advances increased by 5% year-on-year to [INDIAN RUPEE SIGN] 457,469 crore (US$ 67.3 billion) at December 31, 2016 from [INDIAN RUPEE SIGN] 434,800 crore (US$ 64.0 billion) at December 31, 2015.

Deposit growth

There was a significant change in banking system deposit growth after the announcement of withdrawal of legal tender of [INDIAN RUPEE SIGN] 500 and [INDIAN RUPEE SIGN] 1,000 currency notes in November 2016. During Q3-2017, there was an accretion of [INDIAN RUPEE SIGN] 26,705 crore (US$ 3.9 billion) to current and savings account (CASA) deposits. Savings account deposits increased by [INDIAN RUPEE SIGN] 18,512 crore (US$ 2.7 billion) and current account deposits increased by [INDIAN RUPEE SIGN] 8,193 crore (US$ 1.2 billion) during Q3-2017. Savings account deposits increased by 30% and current account deposits increased by 16% on a year-on-year basis at December 31, 2016. The Bank's total CASA deposits increased by 26% year-on-year to [INDIAN RUPEE SIGN] 231,962 crore (US$ 34.1 billion) at December 31, 2016. The Bank's CASA ratio was 49.9% at December 31, 2016 compared to 45.7% at September 30, 2016 and 45.2% at December 31, 2015. The average CASA ratio was 44.8% in Q3-2017 compared to 41.5% in Q2-2017 and 40.7% in Q3-2016. Total deposits increased by 14% year-on-year to [INDIAN RUPEE SIGN] 465,284 crore (US$ 68.5 billion) at December 31, 2016. The Bank had a network of 4,504 branches and 14,146 ATMs at December 31, 2016.

Capital adequacy

The Bank's capital adequacy at December 31, 2016 as per RBI's guidelines on Basel III norms was 15.98% and the Tier-1 capital adequacy was 12.55%, significantly higher than the regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the Bank for December 31, 2016 do not include the profits for 9M-2017. Including the profits for 9M-2017, the capital adequacy ratio for the Bank as per Basel III norms would have been 16.73% and the Tier I ratio would have been 13.33%.

Asset quality

Net non-performing assets at December 31, 2016 were [INDIAN RUPEE SIGN] 20,155 crore (US$ 3.0 billion) compared to [INDIAN RUPEE SIGN] 16,483 crore (US$ 2.4 billion) at September 30, 2016. The Bank's net non-performing asset ratio was 3.96% at December 31, 2016 compared to 3.21% at September 30, 2016. Net loans to companies whose facilities have been restructured were [INDIAN RUPEE SIGN] 6,407 crore (US$ 943 million) at December 31, 2016 compared to [INDIAN RUPEE SIGN] 6,336 crore (US$ 933 million) at September 30, 2016.

Technology initiatives

During the third quarter, the Bank further enhanced its focus on launch of new technology based offerings as well as increasing customer communication and activation of digital channels for customer accounts. The Bank launched 'Eazypay' which is India's first mobile app for merchants to accept payments on mobile phones through multiple modes - UPI, credit or debit cards, internet banking, and 'Pockets', the Bank's digital wallet. The Bank also announced that it would transform 100 villages into 'ICICI Digital Villages' in 100 days. The Bank is creating a cashless ecosystem at these villages, providing vocational training to 10,000 villagers and offering them credit linkages. The Bank was India's first bank to implement interoperable electronic toll collection. The Bank is the largest player based on number of tags issued for electronic toll collection.

The Bank's transaction volumes through digital channels continue to grow. There was a robust increase in activation rates and transaction volumes for the Bank's flagship mobile banking application, iMobile, and digital wallet, Pockets during November and December 2016. There has been a significant increase in volume and value of debit card and credit card transactions in November and December 2016.

In 9M-2017, non-branch channels accounted for close to 95% of all savings account transactions. Digital channels like internet, mobile banking, POS and call centre accounted for about 73% of the savings account transactions.

Consolidated results

Consolidated profit after tax was [INDIAN RUPEE SIGN] 2,611 crore (US$ 384 million) in Q3-2017 compared to [INDIAN RUPEE SIGN] 2,979 crore (US$ 439 million) in Q2-2017 and [INDIAN RUPEE SIGN] 3,122 crore (US$ 460 million) in Q3-2016.

Consolidated assets grew by 8% from [INDIAN RUPEE SIGN] 895,093 crore (US$ 131.8 billion) at December 31, 2015 to [INDIAN RUPEE SIGN] 964,417 crore (US$ 142.0 billion) at December 31, 2016.

Subsidiaries

ICICI Life announced results for 9M-2017 on January 24, 2017. ICICI Life continued to maintain its market leadership among the private sector players in 9M-2017. ICICI Life's retail weighted received premium increased by 28% from [INDIAN RUPEE SIGN] 3,344 crore (US$ 492 million) in 9M-2016 to [INDIAN RUPEE SIGN] 4,277 crore (US$ 630 million) in 9M-2017. ICICI Life's profit after tax was [INDIAN RUPEE SIGN] 450 crore (US$ 66 million) for Q3- 2017 compared to [INDIAN RUPEE SIGN] 436 crore (US$ 64 million) for Q3-2016.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership among the private sector players in 9M-2017. The gross written premium of ICICI General increased by 33% from [INDIAN RUPEE SIGN] 6,181 crore (US$ 0.9 billion) in 9M-2016 to [INDIAN RUPEE SIGN] 8,250 crore (US$ 1.2 billion) in 9M-2017. The profit after tax of ICICI General was [INDIAN RUPEE SIGN] 220 crore (US$ 32 million) in Q3-2017 compared to [INDIAN RUPEE SIGN] 130 crore (US$ 19 million) in Q3-2016.

The profit after tax of ICICI Prudential Asset Management Company (ICICI AMC) increased by 61% year-on-year from [INDIAN RUPEE SIGN] 82 crore (US$ 12 million) in Q3-2016 to [INDIAN RUPEE SIGN] 132 crore (US$ 20 million) in Q3-2017. ICICI AMC continues to be the largest mutual fund in India based on average assets under management for Q3-2017.

The profit after tax of ICICI Securities was at [INDIAN RUPEE SIGN] 88 crore (US$ 13 million) in Q3- 2017 compared to [INDIAN RUPEE SIGN] 55 crore (US$ 8 million) in Q3-2016. The profit after tax of ICICI Securities Primary Dealership was [INDIAN RUPEE SIGN] 182 crore (US$ 27 million) in Q3- 2017 compared to [INDIAN RUPEE SIGN] 63 crore (US$ 9 million) in Q3-2016.

Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)

[INDIAN RUPEE SIGN] crore

FY2016
Q3-2016
9M- 2016
Q2- 2017
Q3- 2017
9M- 2017
Net interest income
21,224
5,453
15,820
5,253
5,363
15,775
Non-interest income
15,322
4,217
10,214
9,120
3,939
16,488
- Fee income
8,820
2,262
6,607
2,356
2,495
7,007
- Lease and other income1
2,442
513
1,736
352
551
1,408
- Treasury income
4,0602
1,442
1871
6,4122
893
8,073
Less:

Operating expense
12,683
3,100
9,278
3,737
3,778
10,888
Operating profit
23,863
6,560
16,756
10,636
5,524
21,375
Less:

Provisions
8,067
2,844
4,742
3,495
2,713
8,723
Additional provisions
-
-
-
3,588
-
3,588
Collective contingency and related reserve
3,600
-
-
-
-
-
Profit before tax
12,196
3,716
12,014
3,553
2,811
9,064
Less: Tax
2,470
698
2,990
451
369
1,288
Profit after tax
9,726
3,018
9,024
3,102
2,442
7,776

Includes net foreign exchange gains relating to overseas operations of [INDIAN RUPEE SIGN] 143 crore in Q3-2016, nil in Q2-2017, [INDIAN RUPEE SIGN] 82 crore in Q3-2017 and [INDIAN RUPEE SIGN] 941 crore in FY2016

Includes profit of [INDIAN RUPEE SIGN] 3,374 crore on sale of shareholding in ICICI Life and ICICI General in FY2016 and a profit of [INDIAN RUPEE SIGN] 1,243 crore and [INDIAN RUPEE SIGN] 5,682 crore on sale of shareholding in ICICI Life in Q3-2016 and Q2-2017 respectively

Prior period figures have been re-grouped/re-arranged where necessary

Summary Balance Sheet

[INDIAN RUPEE SIGN] crore

31-Dec- 15
31-Mar- 16
30-Sep- 16
31-Dec- 16
(Audited)
(Audited)
(Audited)
(Audited)
Capital and Liabilities

Capital
1,163
1,163
1,164
1,164
Employee stock options outstanding
7
7
7
6
Reserves and surplus
88,423
88,566
93,845
96,344
Deposits
407,314
421,426
449,071
465,284
Borrowings (includes subordinated debt)1
177,161
174,807
171,757
159,098
Other liabilities
28,183
34,726
36,096
35,901
Total Capital and Liabilities
702,251
720,695
751,940
757,797

Assets

Cash and balances with Reserve Bank of India
22,176
27,106
23,959
26,194
Balances with banks and money at call and short notice
15,524
32,763
28,605
34,973
Investments
163,543
160,412
174,349
168,987
Advances
434,800
435,264
454,256
457,469
Fixed assets
4,778
7,577
7,608
7,551
Other assets
61,430
57,573
63,163
62,623
Total Assets
702,251
720,695
751,940
757,797

Borrowings include preference share capital of [INDIAN RUPEE SIGN] 350 crore.

Prior period figures have been re-grouped/re-arranged where necessary.

https://www.icicibank.com/aboutus/article.page?identifier=news-performance-review-quarter-ended-december-31-2016-20173101164902890

IDBI Bank (NSE: IDBI)

Highlights of Q3 FY 17 (Dec31, 2016) financial results vis-à-vis Q3 FY 16 (Dec 31, 2015) (MCLR)

Business up 16.34% to 5,16,119 Crore (from 4,43,615 Crore)

Deposits increased by 27.06% to 2,98,194 Crore (from 2,34,691 Crore)

Advances up by 4.31% to 2,17,925 Crore (from 2,08,924 Crore)

CASA increased by 44.32% to 84,660 Crore (from 58,662 Crore)

Total assets grew by 18.78% to 4,02,712 Crore (from 3,39,031 Crore)

Non-Interest Income for the nine months ended December 2016 increased by 38.66 % to 2,862 Crore from 2,064 Crore for the nine months ended December 2015.

Net Interest Income (NII) for the nine months ended December 2016 is 4,163 Crore against 4,662 Crore for the nine months ended December 2015.

Operating Profit for the nine months ended December 2016 is 3,189 Crore against

3,775 Crore for the nine months ended December 2015.

Mumbai, February 07, 2017: The Board of Directors of IDBI Bank Ltd. (IDBI) met in Mumbai today to consider the unaudited financial results for the quarter ended December 31, 2016 which are as under:

Working results:

Statement of Profit & Loss ( in Crore)

Q3
Q3
9M
9M

2016-17
2015-16
2016-17
2015-16
Total Income
7104
7362
23711
23179
Interest income
6553
6784
20849
21115
Non-Interest Income
551
578
2862
2064
Total Expenses
6922
6244
20522
19404
Interest expenses
5703
5228
16686
16453
Operating expenses
1219
1016
3836
2951
Operating Profit
182
1118
3189
3775
Provisions (net)
2437
3301
5147
5704
Net Profit
-2255
-2184
-1958
-1929

Profitability: IDBI reported Net loss of 1958 Crore for the nine months ended December 31, 2016 as against 1929 Crore for the nine months ended December 31, 2015.

Total business (deposits and advances) as at December 31, 2016 was 5,16,119 Crore as against 4,43,615 Crore as at December 31, 2015, registering a growth of 16.34%.

Deposits increased to 2,98,194 Crore as at December 31, 2016 from 2,34,691 Crore as at December 31, 2015, reflecting a growth of 27.06%.

Advances increased by 4.31% to 2,17,925 Crore as at December 31, 2016 as compared to 2,08,924 Crore as at December 31, 2015.

Aggregate assets as at December 31, 2016, was 4,02,712 Crore as against 3,39,031 Crore as at December 31, 2015, registering a growth of 18.78%.

Gross NPA as on December 31, 2016 stood at 15.16% ( 35,245 Crore) of Gross Advances as compared to 13.05% ( 30,134 Crore) of Gross Advances as at September 30, 2016.

Net NPA as on December 31, 2016 stood at 9.61% ( 20,949 Crore) of net advances as compared to 8.32% ( 18,195 Crore) of Net Advances as at September 30, 2016.

Significant developments during October to December 2016

IDBI Bank reduced its Marginal Cost of Funds based Lending Rates (MCLR) w.e.f. January 01, 2017 and further again w.e.f February 01,2017.

IDBI Bank reduced its Base Rate from 9.65% p.a. to 9.50% p.a. The Benchmark Prime Lending Rate (BPLR) was also reduced from 14.15% p.a. to 14.00% p.a., effective from January 01, 2017.

IDBI Bank celebrated Farmer's Day by conducting 'Kisan Sangosthis' at rural & semi-urban locations across the country to acknowledge the important role played by farmers in socio economic development of the country.

Ministry of MSME has instituted National Awards for Excellence in MSE Lending by Public Sector Banks in recognition of the performance in financing to Micro and Small Enterprises. IDBI Bank received "First Prize" in excellence in lending to Micro Enterprises from Hon'ble PM, Shri Narendra Modi.

ASSOCHAM has instituted Awards for Excellence in MSE Lending by Banks & NBFCs in recognition of the performance in financing to Micro, Small & Medium Enterprises. IDBI Bank was awarded in the category 'Excellence in Micro Lending' from Hon'ble MoS for MSME, GoI, Shri Haribhai Parthibhai Chaudhary.

IDBI Bank celebrated the Silver Jubilee of its premier training institute, Jawaharlal Nehru Institute of Banking and Finance (JNIBF), Hyderabad on December 17, 2016.

IDBI Bank celebrated its 53rd Foundation Day on October 01, 2016. On the occasion the Bank launched 53 e-lounges, an e-Trade Portal and the Bank's Facebook banking platform 'iEngage'.

https://www.idbi.com:8443/press/PR-1330.html

Kotak Mahindra Bank (NSE: KOTAKBANK)

Kotak Mahindra Financial Results Q2 FY17

Bank PAT for Q2FY17 813 cr up 43%

Consolidated PAT for Q2FY17 1,202 cr up 28%

Mumbai, October 25, 2016: The Board of Directors of Kotak Mahindra Bank ('Kotak Bank') took on record the unaudited standalone and consolidated results for Q2FY17, at the board meeting held in Mumbai, today.

Kotak Mahindra Bank standalone results

Bank PAT for Q2FY17 increased to 813 cr from 570 cr in Q2FY16, up by 43%

Net Interest Income (NII) for Q2FY17 up 19% to 1,995 cr from 1,679 cr in Q2FY16

Net Interest Margin (NIM) for Q2FY17 at 4.47% up from 4.30% in Q2FY16

Advances as on September 30, 2016 were up 13% YoY to 126,015 cr ( 111,662 cr as on September 30, 2015)

Average Savings deposits for Q2FY17 grew by 35% to 30,678 cr from 22,748 cr in Q2FY16. Average Current Account deposits for Q2FY17 grew by 28% to 19,273 cr from 15,115 cr in Q2FY16. CASA as on September 30, 2016 stood at 39.0%. TD Sweep deposits as on September 30, 2016 were 6.4% of the total deposits.

Capital adequacy ratio of the Bank including unaudited profits as per Basel III as on September 30,

2016 is 16.8% and Tier I ratio is 15.7%

As on September 30, 2016, the Bank has a network of 1,336 full-fledged branches spread across 702 locations and 2,044 ATMs affording it the capacity and means to serve its customers through its wide presence.

As on September 30, 2016, the branch footprint was as under

Zone

West 31%

North 29%

South 34%

East 6%

Total 1,336

As on September 30, 2016, GNPA was 2.49% & NNPA was 1.20%. As on September 30, 2016, restructured loans considered standard were down to 147 cr i.e. 0.12% of net advances as against 160 cr i.e. 0.13% of net advances as on June 30, 2016. As on September 30, 2016, SMA2 outstanding was 419 cr (0.33% of net advances).

Digital Update

Digital remains an area of focus for the Group. Bank and other subsidiaries like Securities, Life Insurance and Mutual Fund are gaining significant traction and market share. Monthly transactions for the Bank on Mobile platform have crossed 3,500 cr in September 16. The share of Recurring Deposits sourced digitally was greater than60% and that of Term Deposits was greater than50%. On a YoY basis, mobile transactions have grown 118% in terms of volume and 95% in terms of value. Payment Gateway transactions have grown 79% on a YoY basis and the Payment Gateway transactions from mobiles now constitute greater than40% of transactions.

Kotak Securities mobile transaction volumes crossed over 8,000 cr per month. Brokerage Contribution of Kotak Stock Trader app crossed 11% of total brokerage. 30% of sales of Kotak Life Insurance policies in Q2FY17 were through Genie - Tablet based end to end sales solution. 48% of switch requests serviced were serviced through the online customer portal of Kotak Life Insurance.

Consolidated results at a glance

Consolidated PAT for Q2FY17 increased to 1,202 cr from 942 cr in Q2FY16 up 28%

Consolidated advances up 14% to 154,078 cr as on September 30, 2016 from 134,669 cr as on September 30, 2015.

Consolidated NIM for Q2FY17 stood at 4.46% (Q2FY16 - 4.38%)

Consolidated capital adequacy ratio (CAR) including unaudited profits as per Basel III as on September 30, 2016 is 17.3%. Tier 1 ratio is 16.5%

Total assets managed / advised by the Group as on September 30, 2016 are 120,705 cr ( 96,037 cr as on September 30, 2015)

Consolidated Networth as on September 30, 2016 was 35,690 cr ( 31,333 cr as on September 30, 2015)

On September 30, 2016, Kotak Mahindra Bank Ltd executed binding share purchase agreement to acquire 99.49% of equity shares of BSS Microfinance Private Limited (BSS), a Non- Banking Finance Company, classified as a NBFC-MFI, from existing shareholders subject to regulatory and other approvals, including Reserve Bank of India.

About Kotak Mahindra Group

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first nonbanking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd.

Effective April 1, 2015, ING Vysya Bank Ltd. has merged with Kotak Mahindra Bank Ltd. creating a 2 trillion institution (consolidated). As on March 31, 2016, the merged entity - Kotak Mahindra Bank Ltd, has a significant national footprint of 1,333 branches spread across 674 locations and 2,032 ATMs, affording it the capacity and means to serve even better.

The consolidated net worth of the Group stands at 334 billion (approx. US$ 5.0 billion) as on March 31, 2016. The Group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide distribution network through branches and franchisees across India, an International Business Unit at GIFT city, Gujarat, and international offices in London, New York, Dubai, Abu Dhabi, Mauritius and Singapore.

http://www.kotak.com/sites/default/files/press_release/press_release_kotak_Q2FY17.pdf

Punjab National Bank (NSE: PNB)

Financial Result for the Quarter ended December 2016

WAY FORWARD:

Small ticket Business aided by Digitalization is going to be thrust area for Bank. Further, in Alignment with the emerging economic scenario, Rural & Semi Urban Branch network is focused for leveraging increase in business. Bank has adopted a multidimensional approach for business transformation focusing at People development, improved customer service, Quality credit, improved CASA and Profit maximization. Setting up "War Room" for real time Resolution, Recovery and up gradation of NPAs, has resulted in increase in recovery position and reduction in fresh slippages in NPAs.

NETWORK

Domestic branch network stands at 6888 and number of Business Correspondents at 7996 as on 31.12.2016. ATM network of the Bank is at 9997 as on 31.12.2016.

International Forays

Bank is having overseas branches in Hong Kong, Dubai and Offshore Banking Unit in Mumbai and Representative Offices (RO) at Dubai (UAE), Shanghai (China), Sydney (Australia) and Dhaka (Bangladesh).

Bank has two overseas subsidiaries viz. PNB International Ltd. (UK) and Druk PNB Bank Ltd (Bhutan).Bank also have one associate company viz. JSC Tengri Bank (Kazakhstan) and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd.

Bank has got permission from RBI for opening Representative office in Yangon (Mynamar). Bank is exploring possibilities for establishing presence in SAARC and BRICS countries.

BUSINESS

Total Business of the Bank, crossing 10 lac crore landmark, stood at Rs. 997907 Cr as on Dec '16 registering a yoy growth of 6.0%% over corresponding period last year.

Deposits

Market share of the Bank in ASCBs increased from 4.96% in Dec 15 to 5.11% in Dec 16.

Total Deposits of the Bank recorded a yoy growth of 11.6% to reach Rs. 612180 Cr as on Dec16.

CASA deposits increased to Rs 262775 Cr in Dec'16 recording a yoy growth of 32.8%. Domestic CASA share improved to 47.09% as on Dec'16 from 40.38% in Dec'15. The share is one of the highest among nationalized banks.

Saving deposits increased by 37.5% on yoy basis to Rs 221997 Cr.

Advances

Gross Global Advances increased to Rs 406042 Cr as on Dec'16.

Net Advances were Rs 385727 Cr as on Dec'16.

Retail loans were at Rs 61035 Cr as on Dec'16, growing 12.3% on yoy basis over Dec'15. Housing loan grew by 18.1% yoy to Rs 29597 Cr in Dec'16.

MSME Advances increased to Rs 78933 Cr in Dec'16.

Micro, Small & Medium Advances

Credit to Micro & Small Enterprises stood at Rs 64960 Cr as on Dec'16.

Credit to Micro enterprises stood at Rs 26495 Cr showing yoy growth of 7.53%

As on 31.12.2016, the Share of Micro Enterprises to total MSME Outstanding stood at 33.56%

Stand up India scheme launched by the Hon'ble Prime Minister on 05.04.2016. The Bank has opened 3400 accounts and disbursed Rs 554.5 Cr as on Dec'16.

PROFITABILITY

Operating & Net Profit

Operating Profit for Dec'16 stood at Rs 3155 Cr showing yoy increase of 8.1%.

Net Profit for Dec'16 stood at Rs 207 Cr.

Income

Total Income stood at Rs 14498 Cr.

Net Interest Income during Dec 16 stood at Rs 3731 Cr.

Non-interest Income stood at Rs 2513 Cr in Dec16.

ASSET QUALITY

As on Dec'16, Gross NPA ratio stood at 13.70% and Net NPA ratio was at 9.09%.

Provision Coverage Ratio stood at 54.96% as on Dec'16.

For intensifying the efforts in NPA reduction, a 'War Room' at HO has been created. E-auction drive and sale to ARCs are the other measures for recovery.

PRIORITY SECTOR

Total PS Credit as on 31.12.2016 stood at Rs 134469 crore constituting 40.99 % to ANBC.

Total advances to Agriculture & allied sector stood at Rs 61709 cr. Consisting 18.81% to ANBC.

During Dec 2016 quarter Bank issued 34955 new Kissan Credit Cards (KCCs).

PNB Kisan Balak Shiksha Protsahan Yojna launched for educating children of poor agriculture borrowers of the Bank.

Mahila Kaushal Vikas Yojna for creating women entrepreneurship launched to promote skill development and provide credit linkage for self employment to rural woman.

FINANCIAL INCLUSION

PNB remains committed towards nation building and actively participated in all schemes launched by the Govt.of India for financial & social empowerment of the masses.

Under the PM Jan Dhan Yojana, Bank opened 155 lacs accounts .Rs 3422.75 Cr have been mobilized in these accounts.

No of transactions through BC channel have increased to 232 Lacs in Dec'16 against 167 lacs in Dec' 15.

Fee based Income earned has increased to Rs.44.80 crore in Dec'16 against Rs.27.88 crore in Dec'15.

PEOPLE DEVELOPMENT

Leadership Development Programs at IIMs and other reputed Management Institutes for Top Management, Rewards and recognition for top performing Staff, PNB- Univ. mobile App for quick access to quality curriculum, PNB NAVODAYA an On-Boarding & Mentoring Mechanism .

MOVE TOWARDS DIGITALIZATION

Demonetization has further accelerated the pace of Bank digitalization and number of new age digital initiatives have been introduced to provide greater ease and improved delivery of products and services to customers.

Concerted efforts are on to increase usage of Alternate Delivery Channels which account for around 53% of transactions.

NEW PRODUCTS/INITIATIVES

Carrying forward the Govt. digital push and with a vision to increase the e-transactions to 70%

A mobile based banking application, called Unified Payment Interface (UPI), has been developed facilitating the customers to access their Bank accounts opened with different Banks in a single app. Number of Users Registered as on 31-12-2016 are Three Lacs.

PNB wallet named "PNB Kitty" has been launched that serves as a virtual account that holds money online for e-payments

Business Debit Card with Higher POS / E-com transaction limits for corporate clients

RuPay EMV debit cards enabled for International Transactions.

User can now avail the Green Pin for Debit card

Youth icon Cricketer Virat Kohli has been appointed Brand Ambassador for PNB to accelerate the growth in Business from young customers and showcase the move of PNB towards business from young customers.

AWARDS & ACCOLADES

Outlook Money Awards 2016 under the category Education Loan Provider of the Year 2016 (Runner Up).

The following IT Projects received Skoch Order Of Merit Award in Dec 2016.

o Security operations centre

o Oracle Real application cluster

o TAB Banking

o Green Pin

https://www.pnbindia.in/downloadprocess.aspx?fid=dLaF8BsxmnWxeLie9fYMgA==

Union Bank of India (NSE: UNIONBANK)

Financial Results for the quarter and 9 months ended December 31, 2016

Key Highlights

- Slippages continue to decline for 3rd straight quarter.

- Excluding one large account, slippages for the quarter was at Rs.1915 crore i.e. about 44% lower than September 2016 quarter

The growth in Deposits was driven by Savings Deposits, which grew by 46.8% against the total Deposits growth of 16.0% on YoY basis.

The share of high cost Deposits declined to 0.9% (Dec 2016) from 1.3% (Dec 2015).

Non-interest Income for the 9M/FY17 increased by 33.6% on YoY basis.

Operating profit grew by 22.8% (9M/FY17) on YoY basis.

Cost to income ratio improved to 47.2% (9M/FY17) against 51.3% (9M/FY16).

Gross NPAs stood at 11.70% as on December 31, 2016, while Net NPA stood at 6.95% as on December 31, 2016.

Provision Coverage Ratio stood at 50.6%.

Capital Adequacy Ratio (Basel III) improved to 11.36% (excluding Nine-monthly profit).

Business

Global Business grew by 11.4% to 656819 crore as on December 31, 2016 from 589889 crore as on December 31, 2015.

The quarter witnessed healthy trend in CASA, which grew by 39.5% to 139708 crore as on December 31, 2016 from 100173 crore in the previous year.

CASA share in total deposits improved to 36.8% as on December 31, 2016 compared to 30.6% as on December 31, 2015. Average CASA ratio stood at 30.7%.

Savings Deposit registered a robust growth of 46.8% YoY as on December 31, 2016.

A total of 39.5 lakh CASA accounts were opened during the current Financial Year so far.

Out of 39.5 lakh CASA accounts, 29.28 lakh were Savings Bank Accounts.

The Bank's Global Advances grew by 5.5% YoY to 277012 crore as on December 31, 2016 from 262477 crore as on December 31, 2015.

Due to strong growth of 13.5% in RAM sector, Domestic Advances increased by 5.9% from 235948 crore as on December 31, 2015 to 249930 crore as on December 31, 2016.

Overseas Business stood at 30902 crore as on December 31, 2016.

Financial Performance for the quarter ended December 2016

Domestic Net Interest Margin (NIM) stood at 2.04% for October-December 2016 as against 2.31% for October-December 2015. Global NIM for October-December 2016 stood at 2.01% compared to 2.30% for July-September 2016 quarter. It was 2.22% a year ago.

Net Interest Income for October-December 2016 was 2136 crore compared to 2277 crore in July-September 2016. It was 1997 crore a year ago.

Non Interest Income for October-December 2016 stood at 1340 crore, up 50% over a year ago.

Operating profit increased to 1851 crore during October-December 2016 over 1820 crore during July-September 2016.

Net Profit for October-December 2016 was at 104 crore against 176 crore in JulySeptember 2016.

Cost to income ratio improved to 46.75% for October-December 2016 from 53.82% for October-December 2015. It is stable over July-September 2016.

Return on average assets (annualised) stood at 0.09% for October-December 2016 as against 0.08 % for October-December 2015 and 0.17% for July-September 2016.

Yield on funds stood at 7.60% for October-December 2016 as against 8.21% for OctoberDecember 2015 and 7.72% for July-September 2016.

Yield on investments stood 7.14% for October-December 2016 as against 7.29% for October-December 2015 and 7.26% for July-September 2016.

Return on equity (annualised) stood at 2.17% in October-December 2016 as against 1.53% in October-December 2015 and 3.56% in July-September 2016.

Earnings per share (annualised) stood at 6.06 in October-December 2016 as against 4.57 in October-December 2015 and 10.27 in July-September 2016.

Financial Performance for nine month ended FY 2016-17

Domestic Net Interest Margin (NIM) stood at 2.27% in 9M/FY17 compared to 2.40% in 9M/FY16. Global NIM for 9M/FY17 was 2.19% as against 2.32% for 9M/FY16.

Net Interest Income for 9M/FY17 up by 4.61% to 6516 crore from 6229 crore in 9M/FY16.

Non Interest Income for 9M/FY17 increased to 3519 crore, up by 33.6% on YoY basis.

Net Profit for 9M/FY17 stood at 447 crore.

Cost to Income ratio improved to 47.23% during 9M/FY17 from 51.35% during 9M/FY16.

Return on average assets (annualised) stood at 0.14% for 9M/FY17 as against 0.44% for 9M/FY16.

Yield on funds stood at 7.60% for 9M/FY17 as against 8.45% for 9M/FY16.

Yield on investments stood at 7.34% for 9M/FY17 as against 7.48% for 9M/FY16.

Return on equity (annualised) stood at 3.05% in 9M/FY17 as against 8.13% 9M/FY16.

Earnings per share (annualised) stood at 8.67 in 9M/FY17 as against 25.63 in 9M/FY16.

Asset Quality

The slippages during the quarter came down sequentially from previous quarter.

Gross NPAs stood at 11.70% as on December 31, 2016 as against 10.73% as on September 30, 2016 and 7.05% as on December 31, 2015.

Net NPA ratio stood at 6.95% as on December 31, 2016 as against 6.39% as on September 30, 2016 and 4.07% as on December 31, 2015.

Provision Coverage Ratio stood at 50.62% as on December 31, 2016 as against 50.45% as on September 30, 2016. It was 55.00% as on December 31, 2015.

Capital Adequacy

Capital Adequacy ratio of the Bank under Basel III is 11.36% as on December 31, 2016. It does not include net profit of 9M/FY17.

The Tier I CRAR is 8.51% higher than regulatory minimum of 7.625%.

Digital Initiatives

In the present era of Digitization and initiatives of Government of India towards Digital India, there is a paradigm shift in the channel choice for availing Banking facilities. The Bank is striving to provide a uniform and superior experience across all channels by taking various digital initiatives and continuously launching various digital products for enhancing the customer services. Following are some of key initiatives during the year:

Rupay Credit Card - Union bank is the first Bank to launch Rupay Credit Card. The card will be offered in two variants namely SELECT (Super Premium) and PLATINUM (Premiun).

Green ATM Pin solution for Debit cards - It's a green initiative (Paperless & Digital) and value added service that offers an effortless and hassle free ATM Pin generation.

"U-Connect" - On the foundation day of the Bank i.e. 11/11/2016, Bank has launched its official page on Facebook and Twitter. The Bank has also marked its presence on Instagram and You Tube during the quarter ended December 31, 2016.

Mobile Banking Transaction almost doubled Y-o-Y. The user base also increased by 65% during the period.

Financial Inclusion:

Under the Pradhan Manrti Jan Dhan Yojana (PMJDY), the Bank has opened more than 64 lakh accounts having a balance of 1565 crore upto December 31, 2016.

The Bank has opened 3.25 lac PMJDY accounts during the quarter since demonetization.

584 crore has been deposited in 7.26 lac PMJDY accounts during the quarter since demonetization.

53.37 lakh Rupay Card has been issued under PMJDY as on December 31, 2016.

Total enrollment under Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APJ) increased to 29.4 lakh, 12.4 lakh and 1.21 lakh respectively.

Network

The Bank has 4237 branches as of December 31, 2016 including 4 overseas branches at Hong Kong, DIFC (Dubai), Antwerp (Belgium) and Sydney (Australia). In addition, the Bank has representative offices at Shanghai, Beijing and Abu Dhabi. The Bank also operates in United Kingdom through its wholly owned subsidiary, Union Bank of India (UK) Ltd.

Total number of ATMs stood at 7496 including 1554 talking ATMs as of December 31, 2016. ATM to branch ratio stood at 1.77.

Awards & Accolades

Golden Peacock HR Excellence Award.

Skoch order of merit on Digital Inclusion.

FIS award for long lasting relationship.

Top Performer Financial institution (MSME) (FECO).

http://www.unionbankofindia.co.in/pdf/Press%20Release_Financial_Results_Union_Bank_Q3_FY16-17.pdf

Yes Bank (NSE: YESBANK)

YES BANK announces Financial Results for the Quarter ended December 31, 2016

1. PROFIT & LOSS (P&L): Key Highlights

Net Profit of 882.6 Crores in Q3FY17; y-o-y growth of 30.6%

Total Net Income of 2,505.8 Crores in Q3FY17 y-o-y growth of 31.7%

Net Interest Income of 1,507.5 Crores for Q3FY17; y-o-y growth of 30.3% on back of growth in

Advances & CASA and expansion in NIM

Non Interest Income of 998.3 Crores for Q3FY17; y-o-y growth of 33.8%

NIM expanded to 3.5% for Q3FY17 from 3.4% in Q2FY17

RoA healthy at 1.8% and RoE increased to 22.3% from 20.5% y-o-y

Book Value at 384.1 per share as on Dec 31, 2016

2. BALANCE SHEET: Key Highlights

CASA ratio at 33.3%, 6.7% increase in one year from 26.6% a year ago on the back of 63.3% growth y-o-y. SA and CA deposits posted growth of 64.3% and 61.5% respectively

CASA+Retail FDs as % of Total Deposits stands at a healthy 59.2% as at Dec 31, 2016 (53.9% as on Dec 31, 2015), 5.4% increase in one year

Advances grew by 38.7% y-o-y to 117,087.0 Crores as at Dec 31, 2016

Total Capital Adequacy as per Basel III is robust at 16.9% with Tier I ratio at 12.2% (including profits and excluding prorated dividend).

Total Capital Funds at 26,864.8 Crores as of Dec 31, 2016.

3. ASSET QUALITY: Key Highlights

Credit Costs at 8 bps for Q3FY17

Gross Non Performing Advances (GNPA) at 0.85% ( 1005.9 Crores) and Net Non Performing Advances stable at (NNPA) at 0.29% ( 342.4 Crores) as at Dec 31, 2016

Provision Coverage Ratio (PCR) stands at 66.0% as at Dec 31, 2016

Standard Restructured Advances as a proportion of Gross Advances at 0.42% ( 500.2 Crores) as at Dec 31, 2016, down from 0.67% ( 568.3 Crores) as at Dec 31, 2015. No additional restructuring during the quarter.

Security Receipts (SRs) stand at 0.22% ( 258.8 Crores) of Gross Advances as at Dec 31, 2016. No sale to ARC during the quarter.

Standard SDR Advances outstanding at 0.16% ( 193.5 Crores) of Gross Advances as at Dec 31, 2016 from two SDR accounts, of which one account was restructured during the quarter. Investment exposure of SDR accounts at 0.01% ( 11.4 Crores) of Gross Advances.

5:25 refinancing exposure of 0.09% ( 103.1 Crores) of Gross Advances as at Dec 31, 2016. No 5:25 refinancing during the quarter

Mumbai, January 19, 2017: The Board of Directors of YES BANK Ltd. took on record the Q3FY17 results at its meeting held in Mumbai today.

Commenting on the results and financial performance, Mr. Rana Kapoor, Managing Director & CEO, YES BANK said, "YES BANK has delivered another quarter of satisfactory performance across key financial parameters of Growth and Profitability driven by expansion in NIMs to 3.5%, while maintaining healthy Asset Quality. During the quarter, the Bank further augmented its Digital offerings and partnerships in line with the Government of India's push towards a Less-Cash economy.

YES BANK continues to garner low cost deposits at a healthy pace on the back of its superior service and technology driven experience with CASA ratio increasing to 33.3% as on Dec 31, 2016. Bank's comprehensive product offerings continue to enable a healthy and granular Advances growth of 38.7% y-o-y. Further, to aid growth momentum, Bank raised 3,000 Crores of Basel III complaint AT1 bonds, reflecting faith of marquee investors in our robust business and financial model.

The healthy mix of institutional, administrative and behavioural reforms such as GST, Demonetisation will widen the scope for Banking Sector and YES BANK remains well positioned given its comprehensive Corporate, Retail and Digital product offerings to further propel its market share for balance sheet as well as payments."

Q3FY17 Performance highlights

Profit & Loss Account

Net Interest Income (NII): NII for Q3FY17 increased by 30.3% y-o-y to 1,507.5 Crores on account of strong growth in advances and CASA deposits. Net interest Margin (NIM) expanded to 3.5% from 3.4% in Q2FY17

Non Interest Income: Non Interest Income increased by 33.8% y-o-y to 998.3 Crores in Q3FY17.

Total Net Income: Total Net Income increased by 31.7% y-o-y to 2,505.8 Crores in Q3FY17.

Operating and Net profit: Operating profit for Q3FY17 increased by 26.5% y-o-y to 1,453.8 Crores Net Profit in Q3FY17 was up 30.6% y-o-y to 882.6 Crores.

Shareholders' Returns: In Q3FY17, RoAs stood at 1.8%. RoE increased to 22.3% from 20.5% y-o-y.

Balance Sheet

Deposits: Total Deposits grew by 30.5% y-o-y to 132,375.8 Crores as at Dec 31, 2016. The Bank's Total Assets grew by 31.9% y-o-y to 194,828.0 Crores as at Dec 31, 2016. The Bank's CD ratio stood at 88.5% as at Dec 31, 2016.

Current and Savings Account (CASA) deposits grew by 63.3% y-o-y to 44,126.4 Crores increasing the CASA ratio to 33.3% as at Dec 31, 2016 up from 26.6% as at Dec 31, 2015. Further, SA deposits grew by 64.3% y-o-y to 29,348.1 Crores and CA deposits grew by 61.5% to 14,778.3 Crores as on Dec 31, 2016.

Advances: Total Advances grew by 38.7% y-o-y to 117,087.0 Crores as at Dec 31, 2016. Corporate Banking accounted for 68.9% of the Advances portfolio, while Retail & Business Banking (incl. MSME) constituted 31.1%.

Sectoral Distribution:

Overall portfolio is well distributed with significant deployment in YES BANK focused knowledge sectors where the Bank has developed considerable sectoral expertise with specialized Relationship Managers, Product Managers and Risk Managers.

Sensitive sector disclosures:

All three sectors showing steady improvement in economic conditions driven by Government of India policy interventions and improving global factors

Asset Quality

Bank continues to show resilience on all Asset Quality parameters:

1. NPA - Credit Costs at 8 bps for Q3FY17

Gross Non Performing Advances (GNPA) as a proportion of Gross Advances was at 0.85% ( 1,005.9 Crores) while Net Non Performing Advances (NNPA) as a proportion of Net advances was at 0.29% ( 342.4 Crores) as at Dec 31, 2016. Bank's specific loan loss Provision Coverage was at 66.0% as at Dec 31, 2016.

2. Standard Restructured Advances at 0.42%

The total Standard Restructured Advances as a proportion of Gross Advances was at 0.42% ( 500.2 Crores) as at Dec 31, 2016, down from 0.67% ( 568.3 Crores) as at Dec 30, 2015. No additional restructuring during the quarter. The restructured loans have been performing in line with expectations and the Bank does not anticipate any material slippages in this book.

3. Security Receipts at 0.22%

Net Security Receipts (SRs) stood at 0.22% of Gross Advances ( 258.8 Crores, comprising 11 borrowers) as on Dec 31, 2016. No sale to ARC during the quarter.

4. Standard SDR Exposure at 0.17%

Strategic Debt Restructuring outstanding exposure of 0.16% ( 193.5 Crores) to Gross Advances as on Dec 31, 2016 from 2 accounts, of which one account was restructured through SDR route during the quarter. Total outstanding Investments in SDR stand at 0.01% ( 11.4 Crores) of Gross Advances as on Dec 31, 2016.

5. 5:25 Refinancing Advances at 0.09%

5:25 refinanced Advances at 0.09% (Rs 103.1 Crores) of Gross advances as on Dec 31, 2016. No additional account was refinanced through 5:25 during the quarter.

6. Rating Profile - Bank's Corporate Exposures continue to remain well rated with over 75% portfolio rated 'A' or better.

Capital Funds (including profits, excluding prorated dividend): As per Basel III, Tier I Capital of 19,328.4 Crores stood at 12.2%, and total CRAR stood at 16.9% as at Dec 31, 2016. Total Capital funds are at 26,864.8 Crores as at Dec 31, 2016.

During the quarter Bank successfully raised Basel III compliant AT1 Bonds of 3,000 Crores at 9.5% coupon. These Bonds were rated AA by CARE and INDIA Ratings (a Fitch Company) Risk Weighted Assets stood at 158,995.7 Crores as at Dec 31, 2016. RWA to Total Assets at 81.6% as on Dec 31, 2016.

Liquidity Coverage Ratio: During Q3FY17, the Bank continued with the LCR maintenance at well above 70% regulatory requirement with monthly average Liquidity Coverage ratio of 88.0%, reflecting a healthy liquidity position.

YES BANK Rating Profile

Bank continues to maintain strong credit ratings across International and Domestic Rating agencies

YES BANK was upgraded by MSCI ESG Research to AAA Rating from AA rating. The MSCI ESG Report has highlighted YES BANK's key strengths in Financial Product Safety, Corporate Governance, and Financial System Instability, and has also highlighted that there are no significant risks for the Bank from an ESG perspective.

Moody's maintained Bank's Long-term international rating of Baa3 which is in line with the Sovereign Rating of India.

During the quarter, Domestic Rating agencies CARE and India Ratings assigned AA rating for Bank's Basel III compliant Additional Tier I instrument.

Domestic Rating agencies, ICRA, CARE and India Ratings (as applicable), have Long-Term ratings of AA+ for the Bank's Basel III compliant Tier II instruments as well as for Infrastructure Bonds.

Social Media

According to the recent ranking by The Financial Brand publication:

YES BANK is ranked amongst the Top 5 Global Bank Brands on Social Media.

YES BANK is the Highest Followed Global Bank Brand on Twitter with over 1.5 million followers

YES BANK is also the second Highest Liked Global Bank Brands on Facebook with more than 5 million Page Likes.

Digital Banking

YES BANK continued investing significantly in new-age mediums and digital technologies to achieve a heightened customer engagement and experience. Some of the Bank's key digital initiatives revolutionizing payments ecosphere are as follows:

YES BANK is the first Bank to create UPI compliant mobile apps for large E-Commerce players using YES Bank's UPI SDK solution. Over 5 million YES Bank's UPI partnered Apps have been downloaded till date.

YES BANK partnered with PhonePe, a Flipkart Group company, to launch India's first UPI (Unified Payments Interface) based mobile payments app, in a move aimed at significantly disrupting the digital payments landscape across India.

Jugnoo, hyperlocal startup, launched UPI enabled payment solution Jugnoo Pay in association with YES BANK that currently allows Peer to Peer money transfer directly using users' respective bank accounts with their mobile number as an identifier.

YES BANK with the launch of SIMsePAY is providing mobile banking facilities on feature phone to over 6 lac customer through tie-up with 31 cooperative banks. The offering is based on a frugal "sim-sleeve" technology, in association with Taisys Technologies, who holds global patent for the same, and has implemented the same successfully in other countries including Kenya and China.

YES BANK is the first bank to implement 'Bots' technology for Customer Acquisition, Cross Sell and Customer Servicing for various businesses. Chat 'Bots' to be used for transactions, cross-sell and as personal banking assistants.

YES BANK implemented a multi-nodal Blockchain transaction to fully digitize vendor financing for Bajaj Electricals. YES BANK has used the Hyperledger Fabric supported by IBM to design a vendor financing solution which allows Bajaj Electricals (anchor client) to digitize the process for discounting and disbursal of funds to its vendors by integrating seamlessly with YES BANK's systems.

YES BANK has collaborated with FortyTwo42 Labs, a Global Cyber Security Research Lab setup in India (Vizag and Pune) and Israel (Tel Aviv), as a co-innovation partner for developing next generation Fintech and Cybersecurity Solutions.

YES Bank launched "YES MOBILE 2.0" mobile Banking app with multiple industry first features, and extensive support for Banking transactions on Apple and Android based SmartWatches.

Over 4 million YES BANK co-branded Virtual Cards issued on the MasterCard platform since launch in January 2016, the largest 'Virtual Prepaid Card' program in the world.

Over 47 million YES BANK powered Freecharge Wallets issued since launch in September 2015.

Expansion & Knowledge Initiatives

Total headcount stands at 19,400 as at December 31, 2016, an increase of 869 employees in the quarter and 5,923 incremental employees since December 31, 2015.

YES BANK has become 1st organization in India to introduce 'Gamification Round', a game based evaluation round, in addition to group discussions and interviews for hiring at premium B-Schools.

Branch network stands at 964 branches as on December 31, 2016, an addition of 14 branches in the quarter. Total ATM network stands at 1,757 as on December 31, 2016, of which 502 are Bunch Note Acceptors (BNA)/Cash Recyclers.

YES BANK raised 3,000 Crores through private placement of Basel III Compliant Additional Tier-1 (AT1) Bonds. The Bonds carry a coupon rate of 9.50% p.a.

YES BANK raised 330 Crores (approx USD 50 Million equivalent) from FMO, the Dutch Development Bank, through an issue of a 7-year Green Infrastructure Bonds, on a private placement basis. FMO invested in YES BANK's bonds through FMO's own sustainable bonds.

YES BANK has launched first in industry Customizable Savings Account that gives the customer, the POWER TO CHOOSE. This unique offering enables the customer to create an account that suits his or her lifestyle and banking preferences, while choosing from a range of products and offerings.

Awards & Recognitions

YES BANK has been recognized as the 'Best Mid-Sized Bank' in the 21st edition of the Business Today - KPMG India's Best Banks study. This is the 8th year in a row, where YES BANK has been awarded by Business Today in its annual Banking survey for growing robustly, embracing technology, innovating and reaching out to people at the bottom of the pyramid.

YES School of Banking (the Learning & Development unit of YES BANK) has been awarded dual international certification in ISO 9001:2008 and ISO 29990:2010, making it the first Learning & Development function in the Indian banking sector to be recognized by this highest level of quality management system.

YES BANK has won the Reuters Most Accurate Forecaster Award for 2016 for the Indian economy for providing most accurate predictions of economic indicators in Reuters Poll in January 2016.

YES BANK, received the Commendation Certificate for Significant Achievement in Environment Management at the CII ITC Sustainability Awards 2016 for innovative approaches, including policy and practice, to reduce the Bank's environmental impact in December, 2016.

YES BANK was conferred the SKOCH Resilient India Award (Gold) for Innovative Methods of Training in Bancasurrance at the 48th SKOCH Summit in December, 2016 in New Delhi.

YES BANK won the Good Corporate Citizen Award 2016 in the 'Banking and Financial Companies' category by Bombay Chamber of Commerce and Industry for manifesting corporate social responsibility towards civic communities and operational excellence, and embedding social and economic dimensions of sustainability in programmes and practices in October, 2016.

YES BANK won the prestigious 'Golden Peacock Award for Sustainability, 2016', for its nature, scope, and effectiveness of social and economic dimension of sustainability programs and practices, at the Institute of Director's 16th London Global Convention on Corporate Governance and Sustainability held in London in December, 2016.

YES BANK was awarded Certificate of Appreciation in Environment Excellence at the 10th Environment Partnership Summit and Environment Excellence Award 2016 in Service Industry category by Indian Chamber of Commerce, Kolkata in December, 2016.

YES BANK's Sustainability Report was Highly Commended as Asia's Best Integrated Report at the Asia Sustainability Reporting Awards 2016 by CSR Works International, Singapore in November, 2016.

Mr. Rana Kapoor, was felicitated as "The Extraordinaire: Leadership Par Excellence" at the Brand Vision Summit 2016 in Mumbai in December, 2016.

Mr. Rana Kapoor was felicitated with 'Banker of the Year for Excellence in Financial Inclusion' at the Rural Summit 2016 organized by MART on December 8 in New Delhi. YES BANK was also recognized for YES SIMsePAY - a unique innovation in digital financial inclusion without Internet, based on a frugal 'sim-sleeve' technology.

Mr. Rana Kapoor was conferred the 'LMA - Vardhman Award for Entrepreneur of the Year 2015' by Ludhiana Management Association in December, 2016.

Mr. Rana Kapoor was conferred the NDIM 'Business Excellence and Innovative Best Practices Academia Award' at the 24th Founder's Day of New Delhi Institute of Management (NDIM) held in October, 2016 in New Delhi.

About Yes Bank

YES BANK, India's fifth largest private sector Bank, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and his top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the Future Businesses of India. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. YES BANK has a knowledge driven approach to banking, and a superior customer experience for its retail, corporate and commercial banking clients. YES BANK is steadily evolving its HR character as the Professionals' Bank of India, with the unrelenting vision of "Building the Finest Quality Bank of the World in India" by 2020.

https://www.yesbank.in/pdf/q3fy2016_17_press_release_pdf

http://www.macrosourcemedia.com/store/p11/Internet_of_Things_Market_Report_%2843_pages%29_-_December_2016.html

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India Banking - Feb 20, 2017

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