Earnings Review
Bandhan Bank PAT beats mkt estimate on strong NII growth
This story was originally published at 18:45 IST on 25 October 2024
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--Bandhan Bank Jul-Sept net profit INR 9.37 bln vs INR 7.21 bln year ago
--Analysts saw Bandhan Bank Jul-Sept net profit INR 8.98 bln
--Bandhan Bank Jul-Sept total income INR 60.95 bln vs INR 50.32 bln year ago
--Bandhan Bank Apr-Sept net profit INR 20.01 bln vs INR 14.42 bln year ago
--Bandhan Bank Jul-Sept net interest margin 7.4% vs 7.2% year ago
--Bandhan Bank Jul-Sept net interest income INR 29.48 bln, up 20.7% on year
--Bandhan Bank advances INR 1.31 tln as on Sept. 30, up 21% on year
--Bandhan Bank current, savings account ratio 33.2% as on Sept 30
--Bandhan Bank deposits INR 1.43 tln as on Sept. 30, up 27% on yr
--Bandhan Bank net credit-deposit ratio 88.5% as on Sept 30
--Bandhan Bank gross NPA ratio 4.68% as on Sept 30 vs 4.23% qtr ago
--Bandhan Bank net NPA ratio 1.29% as on Sept 30 vs 1.15% qtr ago
--Bandhan Bank Jul-Sept provisions INR 6.06 bln vs INR 6.36 bln year ago
--Bandhan Bank provision coverage ratio 73.5% as on Sept 30
--Bandhan Bank Jul-Sept credit cost 2.0% vs 1.6% in Apr-Jun, 2.5% year ago
--Bandhan Bank Jul-Sept fresh slippages INR 11.1 bln vs INR 8.9 bln Apr-Jun
--Bandhan Bank Jul-Sept recoveries, upgrades INR 3.0 bln vs 3.7% Apr-Jun
--Bandhan Bk Jul-Sept recovery, upgrades INR 3.0 bln vs INR 3.7 bln Apr-Jun
--Bandhan Bank Basel III capital adequacy ratio 14.34% as on Sept 30
By Richard Fargose
MUMBAI – Bandhan Bank's net profit for the quarter ended September rose 30% on year to INR 9.37 billion due strong growth in net interest income and lower provisions. The bank's net profit for the quarter was above Street's estimates. According to an average of estimates by nine brokerages, the bank's net profit was seen at INR 8.98 billion. On a sequential basis, the bottom line was down 12%.
The Kolkata-based bank's net interest income for Jul-Sept was INR 29.48 billion, registering a growth of 21% on year. The net interest margin for the quarter was 7.4% compared to 7.2% in a year ago and 7.60% in the previous quarter.
Bandhan Bank's total income for Jul-Sept was INR 60.95 billion compared to INR 50.32 billion a year ago. Gross advances grew 21% on year to INR 1.31 trillion as of Sept. 30.
Growth in secured loans boosted the bank's loan book. Retail book grew 92% on year and commercial banking and housing rose 40% and 17%, respectively.
The bank's deposits grew 27.2% on year to INR 1.43 trillion as on Sept 30. Of this, current account and savings account deposits stood at INR 472.83 billion and CASA ratio was 33.2%. Bandhan Bank's net credit-deposit ratio was 88.5% as on Sept. 30. The capital adequacy ratio as on Sept. 30 was 14.34%.
A slight fall in provisions also supported the growth in bottom line. The bank's provisions fell 4.7% on year to INR 6.06 billion.
The bank's gross non-performing loans fell 22.5% on year to INR 61.05 billion as on Sept. 30 but rose 15.1% sequentially. Consequently, the gross NPA ratio deteriorated to 4.68% as on Sept. 30 from 4.23% as quarter ago. The net NPA ratio also rose to 1.29% from 1.15% as on Jun. 30. Bandhan Bank's credit costs for Jul-Sept was 2.0% as against 1.6% in Apr-Jun and 2.5% year ago.
Fresh slippages during the quarter under review were INR 11.1 billion, higher than INR 8.9 billion in Apr-Jun. The bank's recovery and upgrades were INR 3.0 billion as against INR 3.7 billion in the previous quarter. Bandhan Bank's provision coverage ratio remained steady at 73.5% as on Sept. 30 from 73.7% a quarter ago.
Shares of Bandhan Bank ended 6.9% lower on Friday at INR 168.21 on the National Stock Exchange. The bank announced the earnings after market hours. End
Edited by Ashish Shirke
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