Bandhan Bank's Q2 net profit falls 5% to ₹920 cr1 min read . Updated: 02 Nov 2020, 02:24 PM IST
- Net interest income for the quarter grew by 26% to ₹1,923 cr
- In Q2FY21, the bank has made additional provisions amounting to ₹ 300 crore for Covid-19
Private lender Bandhan Bank reported 5% drop in net profit at ₹920 crore for the quarter ending 30 September, 2020. It was ₹972 crore in the year-ago period. However, net profit for the quarter increased by 67.3% against the previous quarter. In Q2FY21, the bank has taken accelerated additional provision on standard assets amounting to ₹ 300 crore for Covid-19.
"With this provision and additional Standard Assets provision that Bank is carrying in Micro banking portfolio total additional provision in books stands at ₹2,096.0 crore," the lender said in a stock exchange filing.
Net Interest Income (NII) for the quarter grew by 25.8% to ₹1,923.1 crore as against ₹1,529.0 crore in the corresponding quarter of the previous year.
Total advances grew by 19.4% to ₹76,614.6 crore as on September 30, 2020 against ₹64,185.5 crore as on September 30, 2019 and grew by 3.1% QoQ against ₹74,330.5 crore as on June 30, 2020.
Total deposits increased by 34.4% to ₹66,127.7 crore as on September 30, 2020 as compared to ₹49,195.2 crore as on September 30, 2019 and increased by 9.1% QoQ against ₹60,610.0 crore as on June 30, 2020.
Gross NPAs as on September 30, 2020 is at ₹874.0 crore (1.2%) against ₹1,064.2 crore (1.8%) as on September 30, 2019.
Net NPAs as on September 30, 2020 stood at ₹262.5 crore (0.4%) against ₹336.9 crore (0.6%) as on September 30, 2019.
“As the moratorium ended on 31st August 2020 coupled with robust rural performance, we have seen an all-round improvement in collection, disbursement and deposits. On deposits front, we have witnessed the best ever quarter whereas on the disbursement front, we are close to pre-covid level. Collections have seen a steady improvement month on month and is expected to reach near normal in the next 90 days. We now look forward to accelerate the business in H2FY 21," said Chandra Shekhar Ghosh, Managing Director and CEO Bandhan Bank.
At 2:20 pm on Monday, the bank's scrip on BSE was trading nearly 4% higher at ₹300.85.