Abhishek Profile picture
Jan 17 8 tweets 2 min read
6 Key Takeaways of "Bank of India" Q3 Result in this🧵

1) Banks make money by charging more interest on loans they give out than the interest they pay to people who save their money in the banks.

Interest Income = Interest Earned - Interest Expended

#bankofindia #earnings
Hence, Interest income is an important number for a bank to look at.

Bank of India made 64% more money from interest income compared to last year which is a very big positive for the bank.

Interest Income stands at 5,596 crores.
2) Regardless of huge growth(64%) in interest income, Net Profit only grew up by 12% from last year to approx. 1,151 crores which is concerning.

Reasons:

▶️ Non- interest income declined by 22% YoY

▶️ More provisions for bad loans are accounted as compared to last year
3) Banks use a metric called NPA to track unpaid loans. A lower NPA indicates that the bank is more successful in recovering money from borrowers.

Bank of India's NPA ratio is currently at 7.66% which is high in comparison to private banks. This NPA is not considered good.
HDFC Bank's NPA in comparison stands at 1.23%.

However, the bank has made significant progress in improving its bad loans situation this year, as the percentage of bad loans has decreased from 10.46% last year.
4) When a bank lends more money to customers, the bank has better chance to make more money.

Bank of India loaned 16.08% more money to customers this time, which is good for the bank's business.
5) Lastly, the Bank of India has a CASA ratio of 44.5%, which is the same as the largest private bank's(HDFC Bank) CASA.

Bank pay less interest on money in current & savings accounts than it does on money in fixed deposit accounts. Hence, higher CASA is preferred.
6) As of now, the two major shareholders of Bank of India are the Government of India, which owns 81.41%, and LIC, which owns 7.05%.

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More from @Abhishe27960014

Jan 17
4 Key Takeaways of ICICI Lombard Q3 Result in this🧵

ICICI Lombard is a company that sells non-life insurance products such as car, health insurance, etc.

1) The company made 11% more profit in Q3 of this year compared to last year & it is currently at 353 cr.

#ICICILombard
2) Insurance companies make money by selling insurance and collecting payments for those policies (called premiums).

The company earned 16.9% more in premiums in Q3 of this year compared to last year, which is less than the average increase for the whole industry (18.1%).
3) An important way to measure how well an insurance company is doing is by looking at how much extra money they have to pay out claims. This measure is called the Solvency ratio.
Read 5 tweets
Jan 16
6 Key Takeaways of Federal Bank Result in this🧵

1) Federal Bank is one of the top banks when it comes to people sending money from their foreign bank account to an Indian bank account, they have a big market share of 20.36%. ⬇️

#FederalBank
2) Banks make money by charging more interest on loans they give out than the interest they pay to people who save their money in the banks.

Interest income is an important number for a bank to look at.

Federal Bank made 27% more money from interest income compared to last yr.
3) Net Profit grew up by whopping 54% to approx. 803 crores in Q3.

4) When a bank lends more money to customers, the bank has better chance to make more money.

Federal Bank loaned 15% more money to customers this time, which is good for the bank's business.
Read 5 tweets
Jan 15
6 Key Takeaways of HDFC Bank Result in this🧵

#HDFCBank #BANKNIFTYFUTURE

1) Banks make money by charging more interest on loans they give out than the interest they pay to people who save their money in the banks.

Interest Income = Interest Earned - Interest Paid⬇️
Hence, Interest income is an important number for a bank to look at.

HDFC Bank made 25% more money from interest income compared to last year which is a very big positive for the bank.
2) Net Profit also grew up by 18.5% to approx. 12,000 crores in Q3.

3) When a bank lends more money to customers, the bank has better chance to make more money.

HDFC Bank loaned 19.5% more money to customers this time, which is good for the bank's business.
Read 6 tweets

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