Bandhan Bank Q1 profit rises 47.5% on total income boost

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Kolkata | Published: July 19, 2018 2:25:58 AM

Private sector lender Bandhan Bank on Wednesday reported a net profit of Rs 482 crore in the first quarter ending June, registering a jump of 47.5% on the back of higher total income.

The Kolkata-headquartered lender had posted a net profit of Rs 327 crore in the corresponding quarter of 2017-18. (Reuters)

Private sector lender Bandhan Bank on Wednesday reported a net profit of Rs 482 crore in the first quarter ending June, registering a jump of 47.5% on the back of higher total income.

The Kolkata-headquartered lender had posted a net profit of Rs 327 crore in the corresponding quarter of 2017-18.

Its total income grew 38.54% Y-o-Y at Rs 1,766.86 crore compared with Rs 1,275.32 crore during the same period of the last fiscal, according to a stock exchange filing.

Buoyed by the surge in quarterly profit, the bank’s scrip rose 6.79% to end the day at Rs 600.15 on the BSE.

The bank’s operating profit for the quarter under review rose 47.34% Y-o-Y at Rs 821 crore against Rs 557 crore in the corresponding quarter of the last financial year, with net interest income (NII) for the quarter growing 39.5% Y-o-Y at Rs 1,037 crore. Non-interest income grew 72.75% at Rs 211 crore for the June quarter this fiscal against Rs 122 crore in the corresponding quarter of the last fiscal.

Commenting on the results, Bandhan Bank managing director and CEO Chandra Shekhar Ghosh said the start to the current financial year was promising as advances grew by 52% Y-o-Y, overcoming the seasonality, which lenders normally witnessed during the first quarter.

Notably, loan portfolio of the bank grew 52% Y-o-Y at Rs 32,590 crore during April-June period, while deposit grew 37% Y-o-Y at Rs 30,703 crore during the same time. Ghosh said the bank shed bulk deposits worth Rs 3,500 crore during the quarter. Now, bulk deposits accounted for 20% of its total deposits. Net interest margin (NIM) for the quarter under review stood at 10.27%.

During the first quarter of this fiscal, gross non-performing assets, in absolute terms, went up to Rs 388.34 crore, which was an over 120% Y-o-Y jump from Rs 175.19 crore in the same period last fiscal. Gross non-performing assets as a percentage of total advances stood at 1.26% at the end of June quarter of FY19, up from 0.93% in the same period of FY18.

Commenting on the stressed assets, Ghosh said, “The NPAs have mainly come from our microcredit loans, but now that has been arrested. So we expect that our asset quality to improve moving forward,” he said.

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