Bandhan Bank Q2 net profit rises 245% YoY to ₹721 crore: GNPA though stable y-o-y worsens sequentially | Mint
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Business News/ Videos / Companies/  Bandhan Bank Q2 net profit rises 245% YoY to 721 crore: GNPA though stable y-o-y worsens sequentially
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Bandhan Bank Q2 net profit rises 245% YoY to ₹721 crore: GNPA though stable y-o-y worsens sequentially

Q2 Results- Bandhan Bank net profits rises 245% YoY to ₹721 crore. Net Interest Income at ₹2,443 crore in Q2 FY24 improved from ₹2,193 crore in Q2 FY23. NIM at 7.2% improved from 7.0% yoy. However GNPA at 7.3% though comparable to 7.2% yoy, worsens from 6.8% in the previous quarter.

Bandhan Bank, Premium
Bandhan Bank,

Bandhan Bank for the quarter ending September'2023 saw its net profit rise 245% YoY to 721 crore compared to 209 Crore in the year ago quarter. 

Bandhan Bank's Net Interest Income improved to 2,443 crore in Q2 FY24 from 2,193 crore in Q2 FY23. Its Net interest Margins stood at 7.2% in Q2 FY24 which were better than 7.0% seen during  the year ago quarter.

Bandhan Bank gross non-performing asset (GNPA) though at 7.3% as on September 30, 2023  were only slightly higher against 7.2% as on September 30, 2022. however on sequential basis the GNPA worsened from 6.8%.

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The GNPA in absolute terms at around 7870 crore at the end of September quarter worsened from 6960 crore in the previous quarter and around 6850 crore in the year-ago quarter.

Bandhan Bank Net NPA stood at around 2360 Crore at the end of Q2FY24 compared to around 1680 Crore at the end of Q2FY23 and 2140 crore at the end of Q1FY24.

Shreyansh Shah, Research Analyst, StoxBox said that due to the deteriorating asset quality observed this quarter, mainly due to floods in the Northeast, we will watch how the bank is taking steps to mitigate the risk.

However, the performance of the bank this quarter was encouraging mainly due to the bank's strategy to diversify its asset book geographically and the right product mix which also showed that the future growth is likely to be sustained, said Shah. The bank’s collection efficiency also improved, imbibing more confidence towards the bank, added Shah.

 

The Banks CASA (current account saving account) deposits stood at 43,196 crore. The CASA Ratio at 38.5% in Q2 FY24 was an improvement from 36% in Q1 FY24.

Bandhan Bank said that its loan portfolio at the end of Q2 was at 1.08 lakh crore growing by 12.3% YoY

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Mr. Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank in a statement said that  “The performance in this quarter is encouraging for the bank. We have successfully completed a significant IT transformation project which will not only boost customer experience but also our capabilities, resulting in further growth. 

The Bank has also made significant progress in diversifying its asset book geographically as well as in terms of product mix, added Ghosh. "We are already seeing signs of uptick in growth and are confident that the Bank is on the expected growth trajectory" said Ghosh

Bandhan Bank's total number of customers stands at 3.17 crore. Banking outlets as on Sept 30, 2023, stood at more than 6,200. The network consists of 1,621 branches, and 4,598 banking units.

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Published: 18 Oct 2023, 04:24 PM IST
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