Bandhan Bank Q4 update: Total advances up 16%, deposits rise 24%

 


Private sector lender Bandhan Bank on Tuesday said its loans and advances grew 16 per cent year-on-year (YoY) to Rs 1,01,359 crore at the end of January-March quarter of financial year 2021-22.

 

Sequentially, loans and advances rose 15 per cent from Rs 87,998 crore as of December 31, 2021.

 

Total deposits grew 24 per cent YoY and 14 per cent quarter-on-quarter (QoQ) to Rs 96,331 crore, while current account and saving account (CASA) deposits rose 18 per cent YoY and 4 per cent QoQ to Rs 40,072 crore.

 

However, CASA ratio declined to 41.6 per cent from 43.4 per cent a year ago and 45.6 per cent at the end of preceding December quarter.

 

The share of retail to total deposits stood at 77 per cent as against 79 per cent a year ago and 85 per cent a quarter ago.

 

Bandhan Bank said its collection efficiency was at about 96 per cent during March 2022, while liquidity coverage ratio (LCR) was at about 129 per cent as of March 31, 2022.

 

The bank had reported a 35.7 per cent YoY increase in its net profit at Rs 859 crore for October-December quarter, while its net interest income (NII) grew 2.6 per cent to Rs 2,124.7 crore.

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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.

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Bandhan Bank posts huge loss in Q2 as bad loans surge


Private sector lender Bandhan Bank on Friday reported a whopping net loss of Rs 3,008.59 crore for the second quarter this fiscal, on the back of Rs 5,577.92-crore provisions as the lender saw a huge surge in bad loans.


In absolute terms, non-performing assets (NPAs) of the bank, which had posted a net profit of Rs 920 crore in the second quarter last fiscal, soared 10-fold year-on-year to Rs 8,763.60 crore in the second quarter this fiscal from Rs 873.97 crore in the year-ago period. On a quarter-on-quarter basis, NPAs grew 36% from Rs 6,440.38 crore in the first quarter.


During the period under review, the bank made an accelerated provision on NPA accounts of around Rs 1,500 crore. It also provided an additional standard assets provision amounting to Rs 2,100 crore and provision on restructured assets amounting to Rs 1,030 crore.


Addressing a virtual press meet, Bandhan Bank MD & CEO Chandra Shekhar Ghosh said, “It was a very critical quarter. But not just for us, everyone is undergoing the same. We recognised this reality and strengthen our balance sheet to be prepared for the future business. All stresses are assessed and finalised in this moment. And then, the bank made a one-time additional provision. This quarter total provisioning was Rs 5,578 crore.


 Due to such provisioning, the bank has reported a loss of around Rs 3,000 crore in this quarter...it is not a loss, it is like taking some break comfortably, so that from today, we can only focus on business growth and quality of the portfolio.”


Ghosh said the bank believed that this provisioning should be “sufficient” to take care of any previous asset quality issues on account of the ongoing pandemic as well as protect it against the disruptions caused by any potential third wave.


During the second quarter this fiscal, the bank’s gross NPAs as a percentage of total loans increased 964 basis points on year-on-year basis to 10.82% from 1.18% during the same quarter last fiscal. On a quarter-on-quarter basis, the gross NPA ratio soared 264 bps from 8.18% in Q1FY22.


Net interest income (NII) for the quarter stood at Rs 1,935.41 crore, against Rs 1,923.09 crore in the year-ago period. Net interest margin (NIM) stood at 7.6%, down 4 bps from 8% for Q2FY21.


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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.

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Bandhan Bank Q1 results: Net profit falls 31.6%

Bandhan Bank reported 32 percent fall in first quarter net profit at Rs 550 crore as against Rs 804 crore in the year ago period due to seven times rise in provisions and contingencies while its overall repayment collection improved to 76 percent at the end of the reporting period.

Its operating profit rose 17 percent at Rs 1,584 crore against Rs 1,356 crore in the same period with net interest income growing 15 percent at Rs 1,811 crore (Rs 1575 crore). During the quarter it took accelerated additional provision on standard advances amounting to Rs 750 crore to cover the Covid-19-related credit risks. Total provisions stood at Rs 849 crore as against Rs 125 crore.

"We have taken an upfront hit so that the following quarters would be relatively easier," managing director Chandra Shekhar Ghosh told ET.

The extent to which the Covid-19 pandemic will impact the bank's provision on assets and future results will depend on future developments, which are highly uncertain, the bank said in a regulatory filing to stock exchanges.

“The repayment collection would have been better but for the Assam flood and extended lockdown in some states including Assam, Tamil Nadu and West Bengal,” Ghosh said.

The Kolkata-based private sector lender with 61 percent weightage on microfinance has witnessed 68 percent repayment efficiency from micro borrowers till the end of June while the collection from home loan borrowers revived to 85 percent.

Its net interest margin for the quarter was 8.15 percent compared with 8.63 percent in the year ago period. The bank is aiming to keep its net interest margin around the current level, chief financial officer Sunil Samdani said.

Bandhan said it has added 2.13 lakh customers during the quarter to take the base to over two crores even as the economic uncertainty looms large with demand and supply chains taking time to normalise after a three-month long lockdown.

Its gross non-performing assets ratio improved to 1.43 percent against 1.70 percent last year while the net ratio was at 0.48 percent against 0.58 percent.

Bandhan's capital adequacy ratio was at 26.45 percent, more than comfortable than the regulatory minimum.
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Bandhan Bank Q4 results: Profit declines 29% QoQ

Bandhan Bank on Tuesday posted 29 per cent quarter-on-quarter (QoQ) fall in net profit at Rs 517.28 crore for the quarter ended March 31 due to over two-fold rise in provision and contingencies.

Analysts in an ETNow Poll had projected a net profit of Rs 700 crore.

Provisions and contingencies increased to Rs 827.36 crore during the quarter under review against Rs 294.88 crore in the preceding quarter ended December 2019.

Asset quality of the company improved with the percentage of gross non-performing assets coming at 1.48 per cent in Q4FY20 over 1.93 per cent in December quarter.

In view of the amalgamation with GRUH Finance, the figures for the current quarter are not comparable with the corresponding figures of previous year.

Commenting on the performance, Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer of Bandhan Bank said, “Q4FY20 has been a satisfying quarter given the challenges faced during the quarter. During the quarter, the bank has showcased the strengths of its deposit franchise with continuously growing deposits in all the segme ..

Net interest income increased 9 per cent QoQ to Rs 1,680 crore in Q4FY20.

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Bandhan Bank Q3 results, Profit more than doubles


Bandhan Bank on Tuesday reported a 120.85 per cent year-on-year (YoY) rise in net profit at Rs 731 crore for the December quarter compared with Rs 331 crore in the same quarter last year.

The numbers are not comparable as the third quarter results included figures for Gruh Finance, which was merged with the bank with effect from October 17, 2019.

The bank said its net interest income (Nil) jumped 37.10 per cent to Rs 1,541 crore for the quarter edned December 2019. This was against Rs 1,124 crore in the year-ago quarter.

Non-interest income rose 52.99 per cent to Rs 358 crore from Rs 234 crore on a YoY basis.

Net interest margin for the quarter came in at 7.9 per cent for the merged entity (including Gruh Finance) against 10.5 per cent (standalone) in the same quarter last year. Gross NPAs for the merged entity stood at 1.9 per cent compared with 2.4 per cent YoY on a standalone basis.

Chandra Shekhar Ghosh said: "During the quarter, the bank made additional provision of Rs 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."

The company added 7.3 lakh customers during the quarter with total customer base at 1.9 crore as on December 31, the company said in a BSE filing.
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Bandhan Bank Q2 profit rises 99% YoY


Bandhan Bank on Thursday reported 99.28 per cent year-on-year (YoY) rise in net profit for the September quarter at Rs 971.79 crore. The bank had posted a profit of Rs 487.65 crore in the quarter ending September 2018.

However, it should be noted that the numbers for this quarter are not comparable to the same quarter last year due to its merger with Gruh Finance.

Net Interest Income (NII) for the quarter grew 41.84 per cent to Rs 1,529 crore as against Rs 1,078 crore in the corresponding quarter of the previous year. Non-interest income grew 56.96 percent to Rs 361 crore for the quarter ended September 2019 against Rs 230 crore from year ago quarter.

GNPA as at the end of Q2FY20 stood at 1.76 per cent against 2.02 per cent in the June quarter and 1.29 per cent in the September quarter last year.

Net NPA was flat at 0.56 per cent against 0.56 per cent at the end of June 2019 and 0.69 per cent as on September 2018.

CASA for the lender grew 38.69 per cent in the September quarter. CASA ratio was at 33.40 per cent against 36.9 per cent year-on-year.

“Our performance this quarter has been good. There has been a strong growth in deposits and advances with record growth in profits. As we step into the second half of the financial year we feel more confident given our current performance. Historically, second half-year has always been better than the first half-year. Having completed the merger in record time, we now look forward to enhancing the Housing Loan business with the expertise of the well experienced team and the well tested model coupled with our large distribution network and customer base,” Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said.
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