Bandhan Bank Q1 net profit rises 47.5% to Rs 481.7 crore, asset quality stable

Bandhan Bank posted a 47.5 percent rise in its net profit for the June quarter on the back of higher interest income and stable asset quality.

The bank posted a profit after tax of Rs 481.71 crore for the quarter, up from Rs 326.56 crore reported in the corresponding period last year.

The bank's net interest income (NII) for the quarter grew 39.5 percent year on year to Rs 1,037 crore. Non-interest income grew 72.75 percent to Rs 211 crore.

On a sequential basis, the lender's gross non-performing assets (NPA), as a percentage of all its advances, stayed largely unchanged at 1.26 percent at the end of the quarter under review.

At the end of the corresponding quarter last year, the bank's gross NPA ratio stood at 0.93 percent. Its net NPA ratio at the end of the June quarter was 0.64 percent, marginally higher than the 0.56 percent a year ago.

Bandhan Bank's provisions for bad loans during the quarter rose to Rs 800.2 crore, compared to Rs 556.4 crore in the same quarter last year. In the quarter ended March, the bank had made provisions of Rs 1,090.8 crore.

The lender's net interest margin (NIM) for the quarter under review stood at 10.27 percent, slightly lower than the 10.75 percent in the corresponding quarter last year.

Its current account and savings account (CASA) ratio stood at 35.46 percent of total deposits, up from 26.33 percent last year. The bank started commercial operations on August 23, 2015.

"The start of FY19 has been promising with advances growing YoY by 52 percent, overcoming the seasonality of the first quarter. We will strive to maintain the growth and quality of assets during this financial year," said the bank's Managing Director and Chief Executive Officer Chandra Shekhar Ghosh.