Bandhan Bank slips over 5% on lower Q1 PAT as Covid-19 takes a chunk

The bank recorded a 31.59% decline in its net profit to Rs550cr during Q1FY21 compared to Rs804cr in the corresponding quarter of the previous year.

Jul 16, 2020 10:07 IST India Infoline News Service

On Thursday, the Kolkata-based Bandhan Bank witnessed huge sell-offs after the lender posted lower Q1 profitability during June 2020 (Q1FY21) quarter. On Sensex, the bank's stock has plunged by 5.44% by touching an intraday low of Rs330.60 per piece in early trade before correcting.

The bank recorded a 31.59% decline in its net profit to Rs550cr during Q1FY21 compared to Rs804cr in the corresponding quarter of the previous year. The Q1 PAT was impacted as the bank has taken accelerated additional provision on standard assets amounting to Rs750cr for COVID-19 pandemic.

On the other hand, the net interest income (NII) stood at Rs1,811cr this quarter, rising by 14.98% from Rs1,575cr a year ago same period. As for net interest margin (NIM), it stood at 8.15% in Q1FY21 against 8.13% on March 31, 2020.

During the period, gross NPA was at Rs1,007cr which improved from Rs1,020cr in the same period of the previous year. In percentage terms, the gross NPA was at 1.43% in Q1 versus 1.70% in Q1FY20.

At around 10.28 am, the stock was performing at Rs343.25 per piece down by 1.83% on Sensex. 

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