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Below are Quote on Bandhan Bank Q3FY21 results By Mr. Jyoti Roy, DVP – Equity Strategist, Angel Broking Ltd

“Bandhan Bank reported a 34.5% YoY increase in Net interest income to Rs.2,072 crore. NII growth for the quarter was driven by AUM growth of 22.6% YoY to Rs. 80,255 crore while reported NIM for the quarter stood at 8.3%. Other income for the quarter was up by 54.7% YoY to Rs.553.3 crore. Pre provisioning profits for the quarter was up by 51.4% YoY to Rs. 1,914 crore. Provisions for the quarter were up by 263% YoY as a result for which profits for the quarter was down by 13.4% YoY to Rs.632.6 crore. Deposits for the quarter were up by 29.6% YoY while share of low cost CASA deposits increased by 460bps QoQ to 42.9%. While the operating numbers were ahead of expectations higher provision numbers had an adverse impact on profitability. Reported GNPA and NNPA stood at 1.1% and 0.3% at the end of Q3FY21. However without taking into account the dispensation allowed by the Supreme Court Proforma GNPA and NNPA ratio would have been at 7.12% and 2.36% respectively. While we expect the bank to report strong growth, asset quality issues are likely to remain a drag on the company for the next couple of quarters.”

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