Private-sector lender Bandhan Bank on Tuesday reported a net profit of Rs 488 crore in the quarter ended September, up 47% from the corresponding figure in the same quarter last year, on the back of a 55.6% year-on-year (y-o-y) rise in net interest income (NII) to Rs 1,078 crore.
NII is the difference between interest earned and interest paid by the bank. Net interest margin (NIM) also rose to 10.3% from 9.6% at the end of June. The bank’s provisions rose 43% y-o-y to Rs 124 crore.
Asset quality at the bank deteriorated marginally from the previous quarter, with the gross non-performing asset (NPA) ratio rising to 1.29% from 1.26% and the net NPA ratio climbing 5 basis points (bps) to 0.69%.
Total advances as on September 30 stood at Rs 33,373 crore, up 51% from the previous year, while total deposits rose 29.5% y-o-y to Rs 32,959 crore. The current accounts savings accounts (CASA) ratio improved to 36.9% from 28.2% at the end of September 2017.
Retail deposits accounted for 81.6% of all deposits. CASA grew 69.8% y-o-y to Rs 12,176 crore at the end of September. Microfinance loans made up for 87% of Bandhan Bank’s loan book, while the rest of it was comprised of small entrepreneur loans (SELs), ranging between Rs 1 lakh and Rs 10 lakh each, and retail loans.
The bank added 7.6 lakh customers during the quarter, at the end of which its total customer base stood at 144 lakh.
Chandra Shekhar Ghosh, MD and CEO, Bandhan Bank, said the bank disbursed loans worth Rs 11,181 crore in Q2, up nearly 41% from Rs 7,944 crore in the same quarter a year ago.
“We are happy to continue our micro-credit portfolio growth, as per our usual capacity. On a per-day basis, we open 12,222 accounts and disburse 40,000 loans. We hope to continue growing on the micro-credit side and simultaneously, we would like to get into SME loans, for which there is a market, and also retail loans,” he said.