Home >Companies >News >Bandhan Bank June quarter net profit down 32% YoY at 550 crore

MUMBAI: Bandhan Bank on Wednesday reported a 31.6% year-on-year fall in its net profit to 550 crore for the June quarter due to additional provision on standard assets--amounting to 750 crore--for covid-19.

Net interest income (NII) for the quarter rose nearly 15% year-on-year (YoY) to 1,811 crore while non-interest income grew 16.9% to 387 crore.

Net interest margin during the quarter was at 8.15% compared with 8.13% during January-March. Provisions and additional standard assets provision in the micro-banking portfolio totalled 1,769 crore.

"During the quarter, the bank started collections post unlocking announced by the government. Overall, bank collections improved to 76% by end of June’20 compared to 29% in April’20 and continue to showcase the strengths of our retail deposit franchise with strong growth of 35% during this difficult time, especially CASA growing by over 47%," said Chandra Shekhar Ghosh, managing director and chief executive, Bandhan Bank.

Gross non-performing assets (NPAs) as on June 30 fell to 1,007 crore from 1,020 crore in the year-ago period. Net NPAs fell 3.45% to 336 crore from 348 crore a year ago.

Gross NPAs, as a percentage of gross advances, were at 1.43% compared with 1.70% as of June, 2019 and 1.48% as of March, 2020.

Total advances--on book, off book and TLTRO--during the June quarter grew 17.7% YoY to 74,331, and up 3.5% sequentially.

Deposits rose 35.3% year-on-year to 60,610 crore.

At 0235 pm, shares of Bandhan Bank traded 0.7% lower at 349.90 apiece, while the benchmark Sensex was up 255.51 points at 36218.51.

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