Bandhan Bank Q3 profit down 13.5% on Covid provisioning

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January 22, 2021 8:28 AM

The bank's total seposits increased by 29.6% y-o-y to Rs 71,188 crore as on December 31, 2020 as compared to Rs 54,908.5 crore as on December 31, 2019 while total advances grew by 22.6% y-o-y to Rs 80,255 crore against Rs 65,456 crore in the year-ago period.

bandhan bank december quarter performanceDuring the period under review, gross NPAs as a percentage of total loans fell 82 bps to 1.11% from 1.93% during the third quarter last fiscal.

Private sector lender Bandhan Bank on Thursday reported a 13/46% fall in its net profit year-on-year (y-o-y0 to Rs 632.59 crore in the third quarter this fiscal, on the back of additional Rs 1,000 crore provision on standard advances against the potential impact of Covid 19.

The Kolkata-based bank had posted Rs Rs 731.03 crore net profit in the third quarter last fiscal. The lender’s total provision and contingencies during the third quater of this financial year rose 262.43% y-o-y to Rs 1,063.73 crore from Rs 294.88 crore in the same quarter last fiscal.

Operating profit for the quarter under review soared by 51.4% y-o-y to Rs 1,914.1 crore against Rs 1,263.9 crore in the corresponding quarter of the last fiscal as both net interest income (NII) and non-interest income saw substantial growths. While NII grew by 34.50% at Rs 2,071.74 crore, non-interest income increased by 54.67% y-o-y at Rs 553.28 crore. Net Interest Margin (NIM) for the December quarter stood at 8.3%, up 4 basis points (bps) from 7.9% for the September quarter of FY20.

Commenting on the bank’s performance, MD and CEO Chandra Shekhar Ghosh said, “This quarter showed robust performance operationally backed by higher growth, lower cost of funds and aided non-interest income and string retail deposits & CASA.”

The bank’s total seposits increased by 29.6% y-o-y to Rs 71,188 crore as on December 31, 2020 as compared to Rs 54,908.5 crore as on December 31, 2019 while total advances grew by 22.6% y-o-y to Rs 80,255 crore against Rs 65,456 crore in the year-ago period. The lender’s CASA to total deposit stood at 42.9% as against 34.3% in Q3 FY20.

During the period under review, gross NPAs as a percentage of total loans fell 82 bps to 1.11% from 1.93% during the third quarter last fiscal. Net NPA ratio also decreased by 55 bps y-o-y at 0.26%. Pursuant to the Supreme Court order, the bank has not classified any borrowal account, which had not been declared as NPA as on August 31, 2020 as per the RBI Prudential norms, as NPA after August 31.

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