Bandhan Bank posts higher net profit for Q3FY20

Non-interest income went up 52.99% to Rs358cr for the quarter ended December 31, 2019, as against Rs234cr in the corresponding quarter of the previous year.

Jan 14, 2020 07:01 IST India Infoline News Service

Bandhan Bank Ltd., posted its net profit for the December quarter which grew by 120.85% to Rs731cr as against Rs331cr in the corresponding quarter previous year. Net Interest Income (NIl) for the quarter also increased by 37.10% to Rs1,541cr in Q3FY20 as against Rs1,124cr in the corresponding quarter of the previous year. 

Non-interest income went up 52.99% to Rs358cr for the quarter ended December 31, 2019, as against Rs234cr in the corresponding quarter of the previous year.

Net Interest Margin (annualised) for the quarter ending December 31, 2019, stood at 7.9% (merged) against 10.5% (standalone) in the corresponding quarter of the previous year. Operating Profit for the quarter increased by 40.56% to Rs1,265cr vs. Rs900cr in the corresponding quarter of the previous year.

During the quarter, the Bank has made an additional provision of Rs200cr on standard advances in microfinance portfolio after evaluating risk observed in certain areas of a northeastern state, though having a dwindling effect.

CASA ratio at 34.31% (excluding GRUH deposits 35%) against 41.40% yoy and 32.90% on a qoq basis, the bank said in the press note.

Total Deposits increased by 58.51% to Rs54,908cr as on December 31, 2019, as compared to Rs34,639cr as on December 31, 2018.

On a standalone basis, Gross NPAs as on December 31, 2019, is at 1.9% as against 2.4% as on December 31, 2018.

Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said: "Q3FY20 has been a satisfying quarter given the challenges faced during the quarter. During the quarter, the Bank has made an additional provision of Rs200 crore on standard advances in microfinance portfolio after evaluating risk observed in certain areas of a northeastern state, though having a dwindling effect. Last quarter has witnessed strong customer growth on advances and deposit growth has been highest over the last four quarters. I am positive and confident in the business and growth going forward."

Stock view:
Bandhan Bank Ltd is currently trading at Rs506.80, down by Rs6.85 or 1.33% from its previous closing of Rs513.65 on the BSE.

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