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Bandhan Bank Q3 net profit dips 66%; NII drops 2% YoY

Bandhan Bank Q3 net profit dips 66%; NII drops 2% YoY

But on the positive side, the bank said its net non-performing assets (NPAs) improved to 1.9 per cent as on December 31, 2022, against 3.0 per cent as on December 31, 2021.

Bandhan Bank said it has crossed the milestone of Rs 2 lakh crore of total business in a span of just over 7 years of operations. Bandhan Bank said it has crossed the milestone of Rs 2 lakh crore of total business in a span of just over 7 years of operations.

Private sector bank Bandhan Bank on Friday reported that its net profit dipped by 66 per cent to Rs 290.6 crore year-on-year due to decline in net interest margin. Its net profit in Q3 2021-22 was Rs 859 crore. 

The Kolkata-based bank reported that its net interest income (NII) dropped 2.1 per cent to Rs 2,080.4 crore year-on-year. 

But on the positive side, the bank said its net non-performing assets (NPAs) improved to 1.9 per cent as on December 31, 2022, against 3.0 per cent as on December 31, 2021. 

As per its note, its gross NPAs, as on 31 December 2022, were at Rs 6,964.8 crore as against Rs 6,853.9 crore on 30 September 2022. It was Rs 9,441.6 crore on 31 December 2021. 

“The bank registered good growth in business in the third quarter on a year-on-year basis. 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," Bandhan Bank MD and CEO Chandra Shekhar Ghosh said. 

Ghosh added that the bank’s diversification agenda is well on track and with the operating environment being favourable, it is well poised for its next phase of growth. 

The bank said it has crossed the milestone of Rs 2 lakh crore of total business in a span of just over 7 years of operations. The growth in its loan and deposit books was due to growth in distribution and favourable operating environment. 

On Friday, shares of Bandhan Bank shares closed at Rs 241.65 apiece on NSE. 

Other highlights 

1. The bank noted that its total advances (on book + off book + TLTRO + PTC) grew by 11.1 per cent to Rs 97,787.1 crore as on December 31, 2022 as against Rs 87,997.7 crore as on December 31, 2021   

2. Total Deposits increased by 21.0 per cent to Rs 1,02,283.2 crore as on December 31, 2022 as compared to Rs  84,499.8 crore as on December 31, 2021. 

3. Deposits grew 21.0 per cent YoY 

4. Net NPAs as on December 31, 2022 improved to 1.9 per cent against 3.0 per cent as on December 31, 2021 

5. PCR was at 75.4 per cent as on December 31, 2022 against 74.4 per cent as on December 31, 2021 

6. Capital Adequacy Ratio (CRAR) at 19.1 per cent; Tier I at 18.1 per cent ; CRAR (including profit) at 20.6 per cent 

7. PPOP for Q3FY23 increased 23.8 per cent QOQ from Rs 1,553 crore in Q2FY23 to Rs 1,922 crore in Q3FY23 

8. Cost-to-Income Ratio stands at 38.3 per cent in Q3FY23 as against 41.8 per cent in Q2FY23. 

9. At the end of Q3 2022-23, banking outlets 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. 
 

Published on: Jan 20, 2023, 5:00 PM IST
Posted by: Basudha Das, Jan 20, 2023, 4:55 PM IST