Kolkata, Oct 18 (PTI) Bandhan Bank on Wednesday reported an over three-fold jump in net profit at Rs 721 crore for the quarter ended September compared to Rs 209 crore in the corresponding period a year ago.
The bottomline of the bank registered a 245 per cent year-on-year growth in the reporting quarter, driven by a decline in provisioning cost.
Provision (other than tax) & contingencies fell to Rs 636 crore from Rs 1,280 crore in the same quarter a year ago, the lender said.
Total income during July-September rose to Rs 5,032 crore as against Rs 4,250 crore in the year-earlier period.
The bank’s total deposits stood at Rs 1.12 lakh crore, registering an on-year growth of 12.8 per cent, MD & CEO Chandra Shekhar Ghosh said.
He said that out of the Rs 721-crore post-tax profit, Rs 93 crore accrued due to recovery from written-off loans.
“The performance in the second quarter has been encouraging for the bank. In line with its diversification agenda, we are focusing on further augmenting the retail banking portfolio,” Ghosh said at a press conference here.
The Kolkata-headquartered lender’s loan portfolio at the end of the second quarter stood at Rs 1.08 lakh crore, reflecting an on-year rise of 12.3 per cent.
Gross non-performing assets (NPAs or bad loans) during the quarter under review was at 7.3 per cent, equivalent to Rs 7,874 crore in absolute terms, he said.
Bandhan Bank’s net interest income (NII) in the three months ended September was at Rs 2,443 crore, while net interest margin (NIM) stood at 7.2 per cent.
Ghosh said he expects to have 50 per cent of the lender’s loan book secured by 2026.
At present, exposure to ‘Emerging Entrepreneurs Business’ (EEB), constituting unsecured micro-credit and individual loans, comprise 56 per cent of total advances, while the remaining 44 per cent is secured.
The bank’s current account savings account (CASA) ratio stood at 38.5 per cent in the September quarter, while capital adequacy ratio was at 19.2 per cent.
Ghosh said there has been a notable uptick in credit demand in the reporting quarter.
He said Bandhan Bank, which migrated to the new core banking solution (CBS) platform, is expected to start co-lending business in the third quarter of this fiscal, and has already signed up several NBFCs.
The lender aims at taking the total number of branches to 1,700 in the 2023-24 fiscal from 1,620 at present, Ghosh added. PTI DC RBT
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