Bandhan Bank Surges Past Doubts, Delivers Stellar Q3 with ₹733 Crore Profit

12 Feb 2024 , 02:22 PM

Due to a growth in core revenue, Bandhan Bank reported on Friday a more than two-fold increase in net profit for the third quarter that ended in December 2023, coming in at ₹733 Crore.

The new generation bank, situated in Kolkata, reported a net profit of ₹291 Crore for the previous year.
According to a regulatory filing, the bank’s overall income rose from ₹4,840.94 Crore in the previous year to ₹5,210 Crore in the most recent quarter.

In the third quarter of the previous fiscal year, interest income was ₹3,808 Crore, but it improved to ₹4,665 Crore.

From ₹2,080 in the same period of the previous year to ₹2,530 Crore, net interest income increased.

The bank saw an improvement in asset quality, with gross non-performing assets (NPAs) falling to 7% from 7.2% at the end of the October–December quarter of the previous fiscal year.

Nonetheless, net non-performing assets (NPAs) rose to 2.2% from 1.9% the year before.

Compared to ₹1,541 Crore in FY23, provision and contingencies were almost reduced to ₹684 Crore.

At the conclusion of the third quarter, secured loans at Bandhan Bank accounted for 44.5% of total advances, according to MD&CEO Chandra Shekhar Ghosh.

By 2025–2026, the goal is to increase the proportion of secured loans to 50%.

According to Ghosh, the bank is well-positioned given the tight liquidity conditions because deposits are greater than advances. 
The bank’s operating profit dropped to ₹1660 Crore in the third quarter from ₹1920 Crore in the corresponding prior period.

The sale of an NPA for ₹410 Crore in the third quarter of the previous fiscal year, which increased the profit, is what caused the decline in operational profit in the current third quarter. The third quarter of this year does not include this non-recurring item.
According to him, the bank has seen growth in a number of business areas. He stated, ‘We anticipate the growth momentum to continue.’

By the end of the third quarter, the bank’s net interest margin was 7.2%. ‘By the end of the current fiscal year, we hope to keep NIM between seven and 7.5%,’ he stated.

By the conclusion of the third quarter, the bank’s GNPA had improved to 7%. At 19.8%, the capital adequacy ratio was recorded.
By the end of the third quarter, the bank’s collection efficiency ratio was 98%.
The bank currently operates 6250 banking locations nationwide, including branches, abms, and other touchpoints.

In comparison to the previous comparable period of ₹2081 Crore, the bank’s net interest income climbed by 21% to ₹2525 Crore during the third quarter.

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