Bandhan Bank Q3 Results: Net profit jumps 35.7% YoY

Bandhan Bank on January 21 posted a net profit of Rs 859 crore for the third quarter of financial year 2021-22, which marked a 35.7 percent year-on-year (YoY) jump as compared to Rs 633 crore profit logged in the same quarter last fiscal.

Net interest income (NII) for the quarter ending December 2021 grew by 2.6 percent to Rs 2,124.7 crore, as against Rs 2,071.7 crore in the year-ago period.Non-interest income surged by 26.7 percent to Rs 712.3 crore as compared to Rs 562.3 crore in the corresponding quarter of the previous year.

Operating profit increased by 1.4 percent YoY to Rs 1,950.1 crore. Net interest margin (annualised) for Q3 FY22 stood at 7.8 percent as against 7.6 percent in September 2021 quarter.

Commenting on the financial performance, Bandhan Bank MD and CEO Chandra Shekhar Ghosh said, “We have seen all round recovery during the quarter with improved collection and increase in disbursement."

Total deposits of the lender increased by 18.7 percent YoY to Rs 84,499.8 crore as of December 31, 2021, the bank said.

The lender also noted that its gross non-performing assets (NPAs), as of December 31, 2021, is at Rs 9,441.6 crore (10.81 percent) as against Rs 8763.6 crore (10.82 percent) as on September 30, 2021.

Net NPAs as of December 31, 2021, stood at Rs 2,413.1 crore (3.01 percent) as against Rs 2,265.8 crore (3.04 percent) as of September 30, 2021.

"Q4 historically has been the best quarter for the bank and we are positive of our business going forward. With Group loan share in total advances reduced to 52 percent, the bank is on track to achieve the diversification strategy which it had laid down for FY25," Ghosh added.

Bandhan Bank, in a press release, also noted that its outlets as of December 31, 2021, stood at 5,626. The network consists of 1,176 branches, 4,450 banking units as against 1,107 branches, and 4,090 banking units as of December 31, 2020.

The total number of ATMs stood at 489 as of December 31, 2021, against 487 as of December 31, 2020. During the quarter, the number of employees of the bank has gone up from 52,976 to 55,341, it added.