Bandhan Bank’s Q1 profit jumps 45.55%

Private sector lender Bandhan Bank on Friday reported a 45.55% year-on-year rise in net profit to ₹701.14 crore in the June quarter on higher net interest income and other income. The profit was higher than the ₹622.7 crore estimated analysts. Net interest income, the difference between interest earned and expended, rose 35.98% to ₹1,410.38 crore against the year-ago period.

Net interest margin, a key measure of profitability, rose 18 basis points to 10.45% on a year-on-year basis. Other income grew 48.18% to ₹312.21 crore from ₹210.69 crore a year ago. Bandhan Bank’s provisions rose 56% y-o-y to ₹125 crore in the June quarter of FY20.

“2019-20 has started on a promising note, with asset growth at 39.36%. In the year, we expect the Gruh merger to get consummated,” Chandra Shekhar Ghosh, managing director and chief executive, Bandhan Bank, said in a note.