Bandhan Bank sees sharp decline in Q3 net profit; NII down 2% on-year | Mint
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Business News/ Industry / Banking/  Bandhan Bank sees sharp decline in Q3 net profit; NII down 2% on-year
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Bandhan Bank sees sharp decline in Q3 net profit; NII down 2% on-year

Bandhan Bank Q3 Results: The net interest income (NII) fell 2% during the third quarter to ₹2,080.4 crore as against ₹2,124.7 crore in the same quarter last year

Bandhan Bank Premium
Bandhan Bank

Private lender Bandhan Bank has reported a muted third quarter (Q3FY23) with net profit at 290.6 crore, down 66% on-year, owing to a decline in net interest income and higher provisioning. It was 859 crore in the year-ago period.

The net interest income (NII) fell 2% during the third quarter to 2,080.4 crore as against 2,124.7 crore in the same quarter last year.

Non-interest income grew by 45% to 1,033.3 crore for the third quarter as compared to 712 crore in the corresponding quarter of the previous year.

The lender's provisions came in at 1,541 crore versus 1,280 crore QoQ and versus 806 crore on-year.

The bank's net NPAs improved to 1.9% during the third quarter as against 3.0% in the year-ago period.

Gross NPAs as on 31 December, 2022 came in at 6,964.8 crore (7.2%) as against 6,853.9 crore (7.2%) as on 30 September, 2022 and against 9,441.6 crore (10.8%) as on 31 December, 2021.

"In terms of asset quality and stress, we see the worst is behind us and expect overall business momentum to remain robust from Q4 FY23 onwards. The Bank’s diversification agenda is well on track and with the operating environment being favourable, the Bank is well poised for its next phase of growth, said Chandra Shekhar Ghosh, MD & CEO.

During the quarter under review, Bandhan Bank's total deposits surged by 21% to 1,02,283.2 crore, while total advances grew 11.1% to 97,787.1 crore.

The bank's PCR stood at 75.4% as of the December quarter as compared to 74.4% in the year-ago period, while the capital adequacy ratio was at 19.1%.

Banking outlets as of the third quarter stood at 5,723. The network consists of 1,250 branches, 4,473 banking units as against 1,176 branches and 4,450 banking units as on December 31, 2021.

During the quarter under review, the number of employees of the bank has gone up from 64,078 to 66,114.

On Friday, Bandhan Bank shares closed 2.29% at 241.65 apiece on NSE.

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ABOUT THE AUTHOR
Meghna Sen
Business journalist tracking markets, companies, economy and crypto for Livemint. She has 6 years of experience with online and print publications. Email: meghnasen08@gmail.com
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Published: 20 Jan 2023, 03:53 PM IST
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