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Bandhan Bank's Q3 net profit rises 120% to Rs 731 crore

BusinessToday.In     January 14, 2020

Bandhan Bank on Tuesday reported a 120% rise in its net profit to Rs 731 crore for the quarter ended December 31, 2019, compared to Rs 331 crore recorded in the same quarter last year. The bank was merged with Gruh Finance on 17 October, 2019.

"In view of the amalgamation with GRUH Finance, the figures for the current quarter are not comparable with the corresponding figures of previous year/period", the regulatory filing by the lender said.

As per the lender's latest filing, banks' Net Interest Income grew by 37.10% on a yearly basis to Rs 1,541 crore from Rs 1,124 crore in the corresponding quarter of the previous year.

Bank said its gross NPA for Q3 (excluding one large Infrastructure account) stood at 1.3%. Its Net NPAs as on December 31, 2019, stood at 0.8% against 0.7% recorded on December 31, 2018.

Its Net Interest Margin for the quarter came in at 7.9% for the merged entity (including Gruh Finance) against 10.5% (standalone) in the same quarter last year.

The lender added 7.3 lakh customers during the quarter with a total customer base at 1.9 crore as on December 31, the company said in a BSE filing. The bank also added that it has made an additional provision of Rs 200 crore on standard advances in microfinance portfolio.

Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank, said: "Q3FY20 has been a satisfying quarter given the challenges faced during the quarter. During the quarter, the bank made an additional provision of Rs 200 crore on standard advances in microfinance portfolio after evaluating risk observed in certain areas of a northeastern state, though having a dwindling effect. Last quarter has witnessed strong customer growth on advances and deposit growth has been highest over last four quarters. I am positive and confident on the business and growth going forward."

Bandhan Bank's deposit portfolio grew 58.51%, while its loan portfolio (on book + off book) grew 83.87% on a year-on-year basis.

Following the announcement of Q3 results, shares of Bandhan Bank reversed the trend and fell 2.85% to the intraday low of Rs 499 on BSE.

By Rupa Burman Roy

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