Bandhan Bank posts muted Q2 net profit
- Bandhan Bank has reported a muted second quarter with net profit at just ₹209.27 crore for the September quarter, owing to a sharp decline in net interest margins and higher provisioning
Bandhan Bank has reported a muted second quarter with net profit at just ₹209.27 crore for the September quarter, owing to a sharp decline in net interest margins and higher provisioning.
While it reported a net loss of ₹3,008 crore in the year ago, profit was down sequentially from ₹886.5 crore.
Its net interest income rose 13.3% from the year earlier to ₹2,193 crore, while net interest margin fell to 7% in from 8% in the June quarter.
The bank’s other income fell 9.2% to ₹476 crore in Q2 from ₹524 crore in the year-ago period. However, it was up 44% sequentially.
The bank’s asset quality also improved marginally, with its gross non-performing assets at ₹6,854 crore in Q2, compared to ₹6,967 crore in Q3FY23 and ₹8,763 crore in the year ago.
Ratio of gross NPAs to gross advances was at 7.19% against 7.25% in Q1, while ratio of net NPAs to net advances stood at 1.86% on 30 September, compared with 1.92% as on 30 June and 3.04% in Q1 FY22.
The bank’s provisions doubled from ₹643 crore in the year earlier to ₹1,279.7 crore in the September quarter.
Bandhan Bank’s credit cost for Q2 was at 5.3% compared to 2.7% in the June quarter. The full year guidance for credit cost is at 2.5%. The bank’s loan book was flat on a sequential basis at ₹95,830 crore in Q2 but grew 17.4% from the year ago. Its deposits jumped 21.3% to ₹99,365.8 crore in Q2 compared to ₹81,898.3 crore in the year ago.
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First Published:28 Oct 2022, 10:30 PM IST
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