Bandhan Bank reports Q2 loss of ₹3,008 cr as provisions spike multi-fold
- Bandhan Bank Q2 results: The net interest income increased marginally by 0.6% to ₹1,935.40 crore
Private sector lender Bandhan Bank on Friday reported a huge loss of ₹3,008 crore for the second quarter ended September 30, as the surge in bad loans led to a rise in provisioning.
The bank had posted a net profit of ₹920 crore during the corresponding quarter of the previous fiscal.
Total income of the bank in July-September 2021-22, however, rose 6% to ₹2,427 crore, as against ₹2,290 crore in the year-ago period.
The net interest income increased marginally by 0.6% to ₹1,935.40 crore, even as the non-interest income jumped 34% to ₹491 crore during the reported quarter.
The bank's provisions (other than taxes) rose multi-fold to ₹5,578 crore in Q2 FY22 against ₹380 crore in the year-ago quarter.
Non-interest income, meanwhile grew by 34% to ₹491.6 crore for the second quarter as against ₹367 crore in the corresponding quarter of the previous year.
Operating profit for the quarter decreased by 3.9% to ₹1,549.2 crore.
There was a dent in the lender's asset quality as the gross non-performing assets (NPAs or bad loans) spiked to 10.8 per cent of the gross advances as of September 30, 2021, against 1.2 per cent a year ago.
Likewise, the net NPAs jumped to 3.04 per cent from 0.36 per cent.
"We have recognised the stress pool and proactively taken additional requisite provisions such as to meet any contingency requirements and to look forward to do business on a clean slate. This has resulted in a loss for the quarter," Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank, said.
During the quarter, the bank has seen a substantial recovery in collections as the second wave of Covid subsided, he added.
"However, it will help us to concentrate on fresh business growth and to concentrate towards achieving our long term goals with renewed energy," Ghosh said.
Shares of Bandhan Bank closed 2.36 per cent down at ₹291.50 apiece on BSE.
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Business NewsCompaniesCompany ResultsBandhan Bank reports Q2 loss of ₹3,008 cr as provisions spike multi-fold
First Published:29 Oct 2021, 06:13 PM IST
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