Bandhan Bank Q1 results: Net profit slips 32%

 

Private sector lender Bandhan Bank reported a 32.1 per cent decline on annual basis in its net profit for the quarter ended June 30, 2021 at Rs.373.1 crore. The bank had posted a net profit of Rs.549.8 crore in the year-ago period, it said in a regulatory filing on Friday.

The decline in net profit came on the back of rise in provisions on bad loans, which grew by 62 per cent during the quarter under review. Provisions and contingencies (other than taxes) grew to Rs.1,374.9 crore during June quarter this fiscal, compared to Rs.849.1 crore in the corresponding quarter last fiscal.

"Bank have made accelerated provision on NPA accounts of Rs.751 crore, resulting in PCR of 62 per cent as against 50 per cent in Q4 FY21. In addition to this, Bank is also carrying additional standard assets provision amounting to Rs.323 crore and provision on restructured assets amounting to Rs.529 crore," Bandhan Bank said in its filing.

The bank reported a net interest income (NII), the difference between interest earned and interest expended, at Rs.2,114.1 crore for Q1 FY22, up 16.7 per cent from ₹1,811.5 crore in Q1 FY21. Net interest margin increased to 8.5 per cent, against 8.2 per cent as on June 30, 2020. Operating Profit for the quarter increased by 18.1 per cent to Rs.1,871.1 crore against Rs.1,584.2 crore in the corresponding quarter of the previous year.

Total advances, including on book, off book, TLTRO and PTC, grew by 8.1 per cent to ₹80,356.9 crore as on June 30, 2021 against Rs.74,330.5 crore as on June 30, 2020. Total deposits in June quarter increased by 27.6 per cent to Rs.77,335.5 crore, as compared to Rs.60,610 crore in year-ago period.

CASA ratio increased to 42.9 per cent in Q1 FY22 from 37.1 per cent in Q1 FY21. Capital Adequacy Ratio (CRAR) was at 24.8 per cent, lower compared to 26.5 per cent in Q1 FY21. Tier I capital ratio was at 23.8 per cent, while CRAR (including profit) was 25.3 per cent for the period under review.

Gross non-performing assets, as on June 30, 2021, stood at Rs.6,440.4 crore, or 8.2 per cent of gross advances. The bank had reported gross NPAs to the tune of Rs.1,006.6 crore or 1.43 of gross advances as on June 30, 2020.

Net NPAs also grew to Rs.2,457.9 crore during June quarter from Rs.335.8 crore crore in year-ago period. Net NPA ratio increased to 3.3 per cent from 0.5 per cent.