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Bandhan Bank Q2 slides 5% to Rs 920 cr

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Capital Market
Last Updated : Nov 03 2020 | 10:31 AM IST

The bank's net profit slipped 5.32% to Rs 920.01 crore on 17.33% increase in total income to Rs 3,579.39 crore in Q2 September 2020 over Q2 September 2019.

Profit before tax (PBT) rose 6.16% to Rs 1,233 crore in Q2 September 2020 as against Rs 1,161.38 crore in Q2 September 2019. Tax expense for the quarter spurted 65.09% at Rs 312.99 crore as against Rs 189.58 crore in Q2 September 2019. The Q2 result was declared during market hours today, 2 November 2020.

Net Interest Income (NII) for the quarter grew by 25.8% to Rs 1,923.10 crore as against Rs 1,529 crore in the corresponding quarter of the previous year. Net Interest Margin (annualised) for the quarter ending 30 September 2020 stood at 8% against 8.2% in 30 September 2019.

The bank's gross non-performing assets (NPAs) stood at Rs 873.97 crore as on 30 September 2020 as against Rs 1,006.66 crore as on 30 June 2020 and Rs 1,064.21 crore as on 30 September 2019. The ratio of gross NPAs to gross advances stood at 1.18% as on 30 September 2020 as against 1.43% as on 30 June 2020 and 1.76% as on 30 September 2019. The ratio of net NPAs to net advances stood at 0.36% as on 30 September 2020 as against 0.48% as on 30 June 2020 and 0.56% as on 30 September 2019.

Provision and contingencies spurted 171.05% to Rs 394.50 crore in Q2 FY21 from Rs 145.54 crore in Q2 FY20. During the quarter, the bank has taken accelerated additional provision on standard advances amounting to Rs 300 crore. With this provision and additional Standard Assets provision that bank is carrying in Micro banking portfolio, total additional provision in books stands at Rs 2,096 crore.

Deposits grew 34.4% Y-o-Y (year-on-year) and 9.10% Q-o-Q (quarter-on-quarter). Loan portfolio (on book + off book + TLTRO) grew 19.4% Y-o-Y. CASA grew 56.2% Y-o-Y while CASA ratio stood at 38.2% against 37.1% Q-o-Q. Bandhan Bank added 5.02 lakh customers during the quarter with total customer base at 2.08 crore as on 30 September 2020.

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Commenting on the performance, Chandra Shekhar Ghosh, the managing director (MD) and chief executive officer (CEO) of Bandhan Bank, has said that: "As the moratorium ended on 31st August 2020 coupled with robust rural performance, we have seen an all-round improvement in collection, disbursement and deposits. On deposits front, we have witnessed the best ever quarter whereas on the disbursement front, we are close to pre-COVID level. Collections have seen a steady improvement month on month and is expected to reach near normal in the next 90 days. We now look forward to accelerate the business in H2 FY21."

Shares of Bandhan Bank advanced 4.37% to Rs 301.90 on BSE.

Bandhan Bank operates as a commercial bank. The banking outlets as on 30 September 2020 stood at 4,701. The network consists of 1,045 branches, 3,656 banking units as against 1,000 branches and 3,220 banking units as on 30 September 2019. Total number of ATMs stood at 487 as on 30 September 2020 against 485 as on 30 September 2019. During the quarter, the number of employees of the bank has gone up to 45,549 from 41,563.

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First Published: Nov 02 2020 | 2:57 PM IST

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