Bandhan Bank Q2 result: Lender records net profit of Rs 209.3 cr

Bandhan Bank

Bandhan Bank recorded a net profit of Rs 209.3 crore for the quarter ending September (Q2FY23) on October 28, compared to a loss of Rs 3,008.6 crore in the same quarter last year.

The private lender’s net interest income (NII) was Rs 2,193 crore, up 13.3 per cent year on year (YoY) from Rs 1,935.4 crore in the previous quarter.

Total advances increased by 17.4 per cent to Rs 95,834.9 crore, up from Rs 81,661.2 crore the previous year. Total deposits rose 21.3 per cent to Rs 99,365.8 crore from Rs 81,898.3 crore.

The net interest margin (NIM) for the quarter was 7 per cent. RoA (return on assets) and RoE (return on equity) were 0.6 per cent and 4.5 per cent, respectively, for Q2FY23.

“As we enter the H2 FY23, the focus shifts on growth and with pandemic-related stress phasing out, we look forward to the end of FY23 on a high note,” said Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank.

In addition, the corporation reported an improvement in asset quality. Gross non-performing assets (NPA) improved to 7.19 per cent on September 30, 2022, from 10.8 per cent year on year and 7.25 per cent quarter on quarter (QoQ). Net NPAs fell to 1.86 per cent, down from 3.04 per cent and 1.92 per cent, respectively.

The corporation set aside 1279.7 crore for contingencies, roughly double the previous quarter but 77.2 per cent lower year on year. The provision coverage ratio (PCR) was 75.5 per cent, up from 74.1 per cent the previous year.

CASA (current and savings accounts) increased by 10.9 per cent year on year, while the CASA ratio (the ratio of CASA to total deposits), which measures a bank’s operating efficiency, fell to 40.8 per cent from 44.6 per cent year on year.

Bandhan Bank had 5,646 banking outlets as of September 30, 2022. On September 30, 2021, the network had 1,190 branches and 4,456 banking units, compared to 1,168 branches and 4,450 banking units on September 30, 2021.

As of September 30, 2022, the total number of ATMs was 432, up from 487 on September 30, 2021. The number of employees at the bank increased from 61,247 to 64,078 throughout the quarter.

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