 "Bandhan Bank Q4 net profit tumbles 80% to Rs 103 cr on higher provisions")
Bandhan Bank, a microfinance lender, on Saturday reported an 80% fall in net profit at Rs 103.03 crore on 25.5% rise in total income to Rs 3,787.91 crore in Q4FY21 over Q4FY20.
Operating profit before provisions surged 13.73% year on year to Rs 1,729.47 crore in Q4 FY21.The bank's Net Interest Income (NII) for the quarter grew by 4.6% year on year to Rs 1,757 crore in Q4 FY21 from Rs 1,680 crore in the corresponding quarter of the previous year. Net Interest Margin (annualised) for the quarter ended 31 March 2021 stood at 6.8%. NIM is at 8.8% excluding onetime reversal on account of NPA recognition and interest on interest as against 8.1% in 31 March 2020.
Non-interest income grew 57.4% to Rs 787.3 crore for the quarter ended March 31, 2021 compared with Rs 500.2 crore in the corresponding quarter of the previous year.
Provisions and contingencies spiked by 92.7% to Rs 1,594.30 crore in Q4FY21 as compared with Rs 827.36 crore in Q4FY20. The bank said it is holding accelerated provisions of Rs 387.96 crore on standard assets as at March 31, 2021 against the potential impact of COVID-19 (other than provisions held for restructuring under COVID-19 norms).
The gross NPA ratio surged to 6.81% as on March 31, 2021 from 7.1% (proforma basis) as on December 31, 2020 and 1.5% as on March 31, 2020. The net NPA ratio increased to 3.51% as on March 31, 2021 from 2.4% (proforma basis) as on December 31, 2020 and 0.6% as on March 31, 2020.
The microfinance lender posted a 27% fall in net profit to Rs 2,205.45 crore in year ended March 31, 2021 (FY21) from Rs 3,023.73 crore registered in the year ended March 2020 (FY20). Total income increased by 17.68% to Rs 14,633.27 crore in FY21 over FY20.
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Commenting on the performance, Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank said, "A very challenging year ended on a positive note with growth and collection coming back to normalcy. With accelerated provisioning and write off, we are now well placed as we enter FY 22. We remain cautious but confident as we deal with the COVID 19 second wave. We remain committed to our strategy that we have presented last quarter of granular, diversified and quality growth."
The bank's capital adequacy ratio (CRAR) declined to 23.5% in Q4 FY21 from 27.4% in Q4 FY20.
Total Advances (on book+off book+TLTRO) grew by 21.2% to Rs 87,042.90 crore as on March 31, 2021 from Rs 71,846 crore as on 31 March 2020. Total Deposits increased by 36.6% year on year to Rs 77,972.2 crore as on March 31, 2021 as compared to Rs 57,081.5 crore posted on March 31, 2020. CASA to total deposit ratio improved to 43.4% in Q4FY21 from Rs 36.8% in Q4 FY20.
Bandhan Bank operates as a commercial bank. Banking outlets as on March 31, 2021, stood at 5,310. The network consists of 1,147 branches, 4,163 banking units as against 1,018 branches and 3,541 banking units as on March 31, 2020. Total number of ATMs stood at 487 as on March 31, 2021 against 485 as on March 31, 2020.
Shares of Bandhan Bank rose 0.8% at Rs 297 on Friday.
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