Bandhan Bank Ltd on Thursday reported a 67.8% increase in its March quarter net profit due to higher net interest and non-interest income. Net profit for the quarter stood at ₹651 crore, beating the Street's estimates, up 67.78% from ₹388 crore a year ago. Analysts expected the lender to report a net profit of ₹546.30 crore, according to a Bloomberg poll of eight analysts.
Net interest income (NII), or the core income a bank earns by giving loans, was up 45.60% to ₹1,258 crore versus ₹864 crore last year. Non-interest income was at ₹388 crore, up 91.13% from ₹203 crore a year ago.
Provisions and contingencies surged 41.28% to ₹199.97 crore in the quarter from ₹112.86 crore a year ago.
As a percentage of total loans, gross NPAs stood at 2.04% as compared to 2.41% in the previous quarter and 1.25% in the same quarter a year ago. Net NPAs were at 0.58% in the March quarter compared to 0.70% in the previous quarter and 0.58% in the same quarter last year.
Deposits rose 27.64% to ₹43,232 crore while advances increased 38.46% to ₹44,776 crore.
"The year 2018-19 has been a challenging year for the banking industry. We closed the financial year on a positive note with visibility of growth and improvement in asset quality and liability profile," said Chandra Shekhar Ghosh managing director and chief executive officer of Bandhan Bank.
At 12.35 pm, Bandhan Bank was trading at ₹620 on the BSE, up 3.7% from its previous close, while India’s benchmark Sensex index rose 0.1% to 39,070.