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Published on 14/01/2020 1:37:40 PM | Source: Live Mint

Bandhan Bank Q3: Net profit rises to ₹731 crore

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Bandhan Bank today reported its earnings for the quarter ended December 31, 2019. Net Profit for the quarter grew to ₹731 crore against ₹331 crore in the corresponding quarter of the previous year. 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. Bandhan Bank shares were trading 2% lower in noon trade.

Net Interest Income (Nil) for the quarter grew by 37.10% to ₹1,541 crore as against ₹1,124 crore in the corresponding quarter of the previous year. On the other hand, non-interest income grew by 52.99% to ₹358 crore for the quarter ended December 31, 2019 against ₹234 crore in the corresponding quarter of the previous year.

Net interest margin (annualised) for the quarter ending December 31,2019 stood at 7.9% (merged) against 10.5% (standalone) in the corresponding quarter of the previous year.

Total Advances (on book + off book) grew by 83.87% to ₹65,456 crore as on December 31,2019 against ₹35,599 crore as on December 31,2018.

Total deposits increased by 58.51% to ₹54,908 crore as on December 31, 2019 as compared to ₹34,639 crore as on December 31, 2018.

During the quarter, the Bank has made additional provision of ₹200 crore on standard advances in microfinance portfolio after evaluating risk observed in certain areas of a north eastern state, though having a dwindling effect.

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

Bandhan Bank Q3 highlights

Deposit portfolio grew 58.51% YoY

Loan portfolio (on book + off book) grew 83.87% YoY

CASA grew 31.36% YoY

CASA ratio at 34.31% (excluding GRUH deposits 35%) against 41.40% YoY and 32.90% QoQ.

Added 7.3 lakh customers during the quarter with total customer base at 1.9 crore as on December 31, 2019

Gross NPA as on December 31, 2019 at 1.9% against 2.4% as on December 31, 2018 (standalone)

Gross NPA (excluding one large Infrastructure account) stood at 1.3% Vs 1.3% as on December 18 (standalone)

Net NPAs as on December 31,2019 at 0.8% against 0.6% September 30, 2019 (standalone) and 0.7% as on December 31, 2018 (standalone).

Capital Adequacy Ratio (CRAR) at 24.69%; Tier I at 23.09% and CET 1 at 23.09% including profits for current year it would stand at 29.46%