Don’t miss the latest developments in business and finance.

Bandhan Bank slumps on reporting Q2 net loss of Rs 3009 cr

Image
Capital Market
Last Updated : Nov 01 2021 | 10:31 AM IST

Bandhan Bank fell 5.99% to Rs 274.05 after the bank reported net loss of Rs 3008.60 crore in Q2 September 2021 as against net profit of Rs 920.01 crore in Q2 September 2020.

Total income rose 3.03% to Rs 3672.51 crore in Q2 September 2021 over Q2 September 2020.

Net Interest Income (NII) for the quarter grew by 0.6% to Rs 1,935.40 crore as against Rs 1,923.10 crore in the corresponding quarter of the previous year. Net Interest Margin (annualised) for the quarter ended 30 September 2021 stood at 7.6% against 8% in 30 September 2020.

Pre-tax loss stood at Rs 4028.69 crore in Q2 September 2021 as against pre-tax profit of Rs 1233.01 crore in Q2 September 2020.

Provision and contingencies surged 1369.46% to Rs 5577.92 crore during the period under review.

The bank's gross non-performing assets (NPAs) stood at Rs 8,763.60 crore as on 30 September 2021 as against Rs 6,440.38 crore as on 30 June 2021 and Rs 873.97 crore as on 30 September 2020.

The ratio of gross NPAs to gross advances stood at 10.82% as on 30 September 2021 as against 8.18% as on 30 June 2021 and 1.18% as on 30 September 2020.

More From This Section

The ratio of net NPAs to net advances stood at 3.04% as on 30 September 2021 as against 3.29% as on 30 June 2021 and 0.36% as on 30 September 2020.

During the quarter, bank have made accelerated provision on NPA accounts of Rs 1500 crore resulting in PCR of 74% as against 62% in Q1 FY22. In addition to this bank has also provided additional standard assets provision amounting to Rs 2100 crore and provision on restructured assets amounting to Rs 1030 crore amounting to total of Rs 4630 crore.

During Q2 FY22, restructured Emerging Entrepreneurs Business (EEB) portfolio worth of Rs 3490 crore and non-EEB portfolio worth of Rs 268 crore totaling to Rs 3758 crore.

Total advances (on book+off book+TLTRO+PTC) grew by 6.6% to Rs 81,661.20 crore as on 30 September 2021 against Rs 76,614.60 crore as on 30 September 2020.

Total deposits increased by 23.9% to Rs 81,898.30 crore as on 30 September 2021 as against Rs 66,127.70 crore as on 30 September 2020. CASA grew 44.6% YoY. CASA ratio stood at 44.6% against 38.2% YoY.

Commenting on the performance, Chandra Shekhar Ghosh, managing director and CEO of Bandhan Bank said: "During the quarter we have seen substantial recovery in collections as the second wave of covid subsided. We have recognized the stress pool and proactively taken additional requisite provisions such as to meet any contingency requirements and tolook forward to do business on a clean slate. This has resulted in loss for the quarter. However, it will help us to concentrate on fresh business growth and to concentrate towards achieving our long term goals with renewed energy. We have envisaged to diversify our portfolio both in terms of products and geographies; for which we have already worked in that direction and expect the results soon. We are confident of achieving our normal business growth very soon; provided no further covid related disruptions occur."

The bank's outlets as on 30 September 2021, stood at 5,618. The network consists of 1,168 branches, 4,450 banking units as against 1,045 branches and 3,656 banking units as on 30 September 2020. Total number of ATMs stood at 487 as on 30 September 2021 against 487 as on 30 September 2020. During the quarter, the number of employees of the bank has gone up from 51,054 to 52,976.

Powered by Capital Market - Live News

Also Read

First Published: Nov 01 2021 | 10:14 AM IST

Next Story