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US vetoes UN ceasefire resolution in Israel-Hamas conflict, China expresses disappointment

Feb 21, 2024, 03:50PM ISTSource: TOI.inThe United States vetoed a UN Security Council resolution for an immediate ceasefire in the Israel-Hamas conflict, with thirteen...
HomeBusinessUnion, IDBI, ICICI & IDFC stocks rise on strong Q3 FY24 profits

Union, IDBI, ICICI & IDFC stocks rise on strong Q3 FY24 profits


Union Bank of India



reported the highest increase in Q3FY24 net profit at 60% and 57%, respectively, among the banks that declared their results on Friday, leading to share prices reaching 52-week highs. Other lenders



IDFC First Bank

and Union Bank of India also reported improved earnings.
Most of the banks saw their profits being impacted by the RBI directive to make full provisions for any investment in alternate investment funds (AIF) which have put money in borrower companies of the bank.

However, all the banks denied that there was any kind of evergreening and claimed that the investments were safe and the provisions only for compliance purposes. Banks are also seeing pressure on interest margins as tighter liquidity increases the cost of funds.
Union Bank of India’s net profit rose 59.9% to Rs 3,590 crore for the quarter ended Dec 2023 on the back of lower provisioning and a rise in interest income. Share of the bank gained 7% to a 52-week high of Rs 145 before closing at Rs 141.56 in the stock exchanges. The bank’s market capitalisation crossed Rs 1 lakh crore for the first time.
IDBI Bank reported a net profit of Rs 1,458 crore for the quarter ending Dec 23, due to reduced provisioning and improved interest income. The LIC-controlled bank’s net profit in the same period last year was Rs 927 crore. Interest income rose 25% to Rs 6,541 crore Provisions and contingencies more than halved to Rs 320 crore in the Dec squarter from Rs 784 crore in the same quarter last fiscal.

Shares of IDBI Bank gained 13% to hit a 52-week high of Rs 80 before closing at 79, a 13.5% gain over its previous close. The bank’s marketcap has increased by over Rs 10000 crore to Rs 84,987 crore.
ICICI Bank’s share breached the Rs 10000 crore mark in quarterly earnings with a net profit of Rs 10272 crore for the quarter ended Dece 2023 which was an increase of 23.6% from Rs 8,312 crore in the corresponding quarter last year.

IDFC First Bank reported an 18% rise in Q3FY24 net profit to Rs 716 crore, driven by increased interest income.

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