Bandhan Bank Q1 results: Net profit slips 32% to ₹373 cr as provisions grow
PremiumThe decline in net profit came on the back of rise in provisions on bad loans, which grew by 62 per cent during the quarter under review
Private sector lender Bandhan Bank reported a 32.1 per cent decline on annual basis in its net profit for the quarter ended June 30, 2021 at ₹373.1 crore. The bank had posted a net profit of ₹549.8 crore in the year-ago period, it said in a regulatory filing on Friday.
The decline in net profit came on the back of rise in provisions on bad loans, which grew by 62 per cent during the quarter under review. Provisions and contingencies (other than taxes) grew to ₹1,374.9 crore during June quarter this fiscal, compared to ₹849.1 crore in the corresponding quarter last fiscal.
"Bank have made accelerated provision on NPA accounts of ₹751 crore, resulting in PCR of 62 per cent as against 50 per cent in Q4 FY21. In addition to this, Bank is also carrying additional standard assets provision amounting to ₹323 crore and provision on restructured assets amounting to ₹529 crore," Bandhan Bank said in its filing.
The bank reported a net interest income (NII), the difference between interest earned and interest expended, at ₹2,114.1 crore for Q1 FY22, up 16.7 per cent from ₹1,811.5 crore in Q1 FY21. Net interest margin increased to 8.5 per cent, against 8.2 per cent as on June 30, 2020. Operating Profit for the quarter increased by 18.1 per cent to ₹1,871.1 crore against ₹1,584.2 crore in the corresponding quarter of the previous year.
Total advances, including on book, off book, TLTRO and PTC, grew by 8.1 per cent to ₹80,356.9 crore as on June 30, 2021 against ₹74,330.5 crore as on June 30, 2020. Total deposits in June quarter increased by 27.6 per cent to ₹77,335.5 crore, as compared to ₹60,610 crore in year-ago period.
CASA ratio increased to 42.9 per cent in Q1 FY22 from 37.1 per cent in Q1 FY21. Capital Adequacy Ratio (CRAR) was at 24.8 per cent, lower compared to 26.5 per cent in Q1 FY21. Tier I capital ratio was at 23.8 per cent, while CRAR (including profit) was 25.3 per cent for the period under review.
Gross non-performing assets, as on June 30, 2021, stood at ₹6,440.4 crore, or 8.2 per cent of gross advances. The bank had reported gross NPAs to the tune of ₹1,006.6 crore or 1.43 of gross advances as on June 30, 2020.
Net NPAs also grew to ₹2,457.9 crore during June quarter from ₹335.8 crore crore in year-ago period. Net NPA ratio increased to 3.3 per cent from 0.5 per cent.
MINT PREMIUM
See All
"Typically, second half of the financial year is always better for the bank in terms of growth and collections. With easing of Covid second wave and upcoming festive season, we are confident of achieving better performance going forward," said Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank.
On Friday, Bandhan Bank shares closed the day's trade at ₹291.30, down 1.25 points or 0.43 per cent.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!