Bandhan Bank's stock price down by 10% today

31 Oct 2022 , 10:13 AM

In intraday trading on Monday, Bandhan Bank shares fell 10% and touched a 10-month low of Rs244.55 per share after the private sector lender disclosed a subpar operational performance for the three months ending in September 2022 (Q2FY23). In the year 2022, the stock traded at its lowest price (CY22).

Additionally, the private sector lender’s net interest income (NII) increased 13.3% year over year and decreased 12.8% quarter over quarter to Rs2,193 crore, mostly due to a dip in margins. Meanwhile, cost of funds rose by 20 bps, net interest margins (NIMs) decreased by 100 bps QoQ to 7%.

Sequentially, provisions increased by double to Rs1,279 crore; as a result, the bank’s net profit fell by 76.4 % quarter over quarter and by 30 percent year over year to Rs209 crore. However, asset quality increased as the GNPA and NNPA ratios decreased by 6 bps each on a QoQ basis to 7.19% and 1.86%, respectively.

Additionally, the bank reported a PAT of Rs209 crore in Q2FY23, which was a 63% miss, due to lower operating performance across crucial measures like NII, other revenue, and operating expenses as well as increased provisions.

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