Bandhan Bank net rises 36% riding on growth of non-interest income

The private sector lender had posted a whopping net loss of Rs 3008.59 crore for the second quarter in the current financial year on the back of Rs 5613.48-crore provisions as it had seen a huge surge in bad loans.

For the EEB segment (erstwhile microbanking segment), collection efficiency for December 2021 stood at 92% (including NPAs) against 86% in September 2021. And, it was 97% (excluding NPAs) for December versus 93% in September.
For the EEB segment (erstwhile microbanking segment), collection efficiency for December 2021 stood at 92% (including NPAs) against 86% in September 2021. And, it was 97% (excluding NPAs) for December versus 93% in September.

Bandhan Bank on Friday reported a 35.79% year-on-year jump in net profit to Rs 858.97 crore for the third quarter this fiscal year from Rs 632.59 crore in the same period last financial year as the lender’s non-interest income grew and provisions fell.

The private sector lender had posted a whopping net loss of Rs 3008.59 crore for the second quarter in the current financial year on the back of Rs 5613.48-crore provisions as it had seen a huge surge in bad loans.

Its non-performing assets (NPAs), in absolute terms, rose 7.74% quarter on quarter to `9441.57 crore in Q3FY22 as against Rs 8773.60 crore in Q2FY22. On a year-on-year basis, its NPAs soared tenfold from Rs 859.22 crore in the third quarter last fiscal. During the quarter under review, the bank’s gross NPAs, as a percentage of total loans, stood at 10.81% compared to 10.82% in the second quarter.

Commenting on the results, Chandra Shekhar Ghosh, managing director and CEO, said, “Third quarter of this fiscal has been a very good one for the bank where we have witnessed growth across all parameters. After the challenging first half, we have seen growth bounced back strongly and things stabilise on the asset quality front with collection efficiency improving very strongly.”

For the EEB segment (erstwhile microbanking segment), collection efficiency for December 2021 stood at 92% (including NPAs) against 86% in September 2021. And, it was 97% (excluding NPAs) for December versus 93% in September.

“We have seen all round recovery during the quarter with improved collection and increase in disbursement. Q4 historically has been the best quarter for the bank and we are positive of our business going forward. With group loan share in total advances reduced to 52%, bank is on track to achieve the diversification strategy which it had laid down for FY25,” Ghosh said.

Net interest income (NII) for the quarter stood at Rs 2124.70 crore as against Rs 2071.74 crore in the corresponding quarter of the previous year. The bank’s non-interest income grew 26.67% year on year to Rs 712.29 crore. Provisions during the quarter under review fell 25.25% YoY to Rs 805.71 crore from Rs 1077.83 crore in the year ago.

The bank said share of full paying customers stood at 89% in December, up from 79% in September. Around 66% of NPA customers continued to make payments in a bid to regularise their overdue loan accounts at the earliest. Around 2/3rd of the bank’s restructured customers also continued to pay despite moratorium.

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