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Informist, Friday, Jul 26, 2024

--Bandhan Bank Apr-Jun net profit 10.63 bln rupees vs 7.21 bln

--Analysts saw Bandhan Bank Apr-Jun net profit 7.99 bln rupees 

--Bandhan Bank Apr-Jun total income 60.63 bln rupees vs 49.08 bln 

--Bandhan Bank Apr-Jun provisions 5.23 bln rupees vs 6.02 bln 

--Bandhan Bank Apr-Jun NIM 7.6%, unch on quarter

--Bandhan Bank Apr-Jun NII 30.05 bln rupees vs 24.91 bln year ago

--Bandhan Bank net NPA ratio 1.15% as on Jun 30 vs 1.11% qtr ago 

--Bandhan Bank gross NPA ratio 4.23% as on Jun 30 vs 3.84% qtr ago 

--Bandhan Bank capital adequacy ratio at 14.97% as on Jun 30 

MUMBAI – Bandhan Bank's net profit for the quarter ended June surged 47.5% on year to 10.6 bln rupees due to fall in provisions and as net interest margin was stable. The bank's provisions fell 13.1% on year and 70.5% on quarter to 5.23 bln rupees.

The bank's net profit for the quarter was sharply above Street's estimates. According to an average of estimates by nine brokerages, the bank's net profit was seen at 7.99 bln rupees.

The bank's gross non-performing loans rose 10.9% on quarter to 53.04 bln rupees as on Jun 30. Consequently, the gross NPA ratio deteriorated to 4.23% as on Jun 30 from 3.84% as on Mar 31. The net non-performing assets ratio also rose to 1.15% as of Jun 30 from 1.11% a quarter ago.

During the June quarter, the bank reported fresh slippages to the tune of 8.9 bln rupees, while recoveries and upgrades were only 3.7 bln rupees. The provision coverage ratio was 73.7% as on Jun 30 as against 71.8% a quarter ago.

The bank's loans and advances rose 21.8% on year to 1.26 trln rupee supported by all-round growth across verticals. Deposits grew 22.8% on year to 1.33 trln rupees, higher than the growth in advances, supported by 24.9% growth in retail term deposits.

Net interest income for the quarter was 30.05 bln rupees, up 21% on the back of a steady net interest margin. Net interest margin for the quarter under review was 7.6%, unchanged from a quarter ago. Most analysts expected the net interest margin to decline 15-30 basis points on quarter as the cost of mobilising deposits was high.

Based on the clarification received, the bank has assigned risk weight of 125% to its emerging entrepreneur business group loans and small business and agriculture loans portfolio against 75% assigned earlier. Accordingly, capital adequacy ratio as on Mar 31 has been recomputed to 14.69% from l8.28% reported earlier. The capital adequacy ratio was 14.97% as on Jun 30.

The collection efficiency for emerging entrepreneur business loans was stable at 98.7% for the quarter ended Jun 30.

Today, shares of Bandhan Bank closed 3.6% higher at 192.50 rupees on the National Stock Exchange. The bank announced the earnings after market hours.  End

Reported by Richard Fargose

Edited by Ashish Shirke

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