BANDHAN BANK Announces Quarterly Results (3QFY21); Net Profit Down 13.5%

Fri, 22 Jan

BANDHAN BANK has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

BANDHAN BANK Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Operating income	Rs m	27,176	31,976	33,078	3.4%	21.7%
Other income	Rs m	3,577	3,818	5,533	44.9%	54.7%
Total revenues	Rs m	30,753	35,794	38,611	7.9%	25.6%
Interest	Rs m	11,774	12,745	12,361	-3.0%	5.0%
Gross Profit	Rs m	15,403	19,231	20,717	7.7%	34.5%
Other expenses	Rs m	6,341	6,773	7,109	5.0%	12.1%
Profit before tax	Rs m	9,690	12,330	8,454	-31.4%	-12.8%
Tax	Rs m	2,380	3,130	2,128	-32.0%	-10.6%
Profit after tax	Rs m	7,310	9,200	6,326	-31.2%	-13.5%
Gross profit margin	%	56.7	60.1	62.6
Effective tax rate	%	24.6	25.4	25.2
Net profit margin	%	26.9	28.8	19.1

Year-on-Year Performance:

• The bank's operating income (interest earned) during the quarter grew 21.7% on a year-on-year (YoY) basis. The interest expended was up by 5.0% YoY during the same period.
• The bank's operating profit increased by 34.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 62.6% in 3QFY21 as against 56.7% in 3QFY20.
• Other income increased by 54.7% YoY during the quarter.
• Net profit for the quarter declined by 13.5% YoY. Net profit margins during the quarter declined from 26.9% in 3QFY20 to 19.1% in 3QFY21.

Quarter-on-Quarter Performance:

• The bank's operating income (interest earned) during the quarter grew 3.4% on a quarter-on-quarter (QoQ) basis. The interest expended was down by 3.0% QoQ during the same period.
• The bank's operating profit increased by 7.7% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 62.6% in 3QFY21 as against 60.1% in 2QFY20.
• Net profit for the quarter declined by 31.2% QoQ, while net profit margins declined from 28.8% in 2QFY20 to 19.1% in 3QFY21.

To see how BANDHAN BANK has performed over the last eight quarters,please visit here.

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BANDHAN BANK Share Price Performance

Over the last one year, BANDHAN BANK share price has moved down from Rs 475.5 to Rs 317.4, registering a Loss of Rs 158.1 or around 33.3%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 35,546.9 (down 2.6%). Over the last one year it has moved up from 34,971.3 to 35,546.9, a gain of 576 points (up 1.6%).

Overall, the S&P BSE SENSEX is up 18.1% over the year.

Current Valuations

At the current price of Rs 317.4, the price to earnings (P/E) ratio of BANDHAN BANK stands at 23.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.0 times.