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Business News/ Companies / Company Results/  Bandhan Bank posts muted Q2 net profit
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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 MD and CEO Chandra Shekhar Ghosh during a press meet in Kolkata, Friday (PTI)Premium
Bandhan Bank MD and CEO Chandra Shekhar Ghosh during a press meet in Kolkata, Friday (PTI)

MUMBAI : 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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ABOUT THE AUTHOR
Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
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Published: 28 Oct 2022, 10:30 PM IST
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