Bandhan Bank fell 1.18% to Rs 348.25 after the bank's standalone net profit fell 31.58% to Rs 549.81 crore on a 14.93% increase in total income to Rs 3,404.84 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax tanked 40.22% to Rs 735.11 crore in Q1 FY21 as against Rs 1,229.70 crore in Q1 FY20. Tax expenses dropped 56.51% to Rs 185.30 crore in Q1 FY21 as compared to Rs 426.08 crore in Q1 FY20. The Q1 earnings were announced during trading hours today, 15 July 2020.
The bank's gross non-performing assets (NPAs) stood at Rs 1006.66 crore as on 30 June 2020 as against Rs 992.77 crore as on 31 March 2020 and Rs 1019.17 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 1.43% as on 30 June 2020 as against 1.48% as on 31 March 2020 and 1.70% as on 30 June 2019. The ratio of net NPAs to net advances stood at 0.48% as on 30 June 2020 as against 0.58% as on 31 March 2020 and 0.59% as on 30 June 2019.
The bank's provisions and contingencies surged 577.35% to Rs 849.06 crore in Q1 June 2020 over Rs 125.35 crore in Q1 June 2019. During the quarter the bank has taken accelerated additional provision on standard advances amounting to Rs 750 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 1,769 crore.
Net Interest Income (NII) for the quarter grew 14.98% to Rs 1,811 crore as against Rs 1,575 crore in the corresponding quarter previous year. Non-interest income grew 16.92% to Rs 387 crore for the quarter ended 30 June 2020 as compared to Rs 331 crore in the corresponding quarter last year. Net Interest Margin (NIM) (annualised) for the quarter ending 30 June 2020 stood at 8.15% against 8.13% in 31 March 2020.
Total advances (on book + off book+ TLTRO) grew by 17.68% to Rs 74,331 crore as on 30 June 2020 against Rs 63,164 crore as on 30 June 2019 and 3.46% QoQ against Rs 71,846 crore as on 31 March 2020. Total deposits increased 35.30% to Rs 60,610 crore as on 30 June 2020 compared with Rs 44,796 crore as on 30 June 2019 and 6.18% QoQ against Rs 57,082 crore as on 31 March 2020.
Current Account-Savings Account (CASA) grew 47.30% Y-o-Y. CASA ratio at 37.08% (excluding GRUH deposits 37.83%) against 36.84% Q-o-Q. Bandhan Bank has added 2.13 lakh customers during the quarter with total customer base at 2.03 crore as on 30 June 2020.
Commenting on the Q4 performance, Chandra Shekhar Ghosh, the managing director (MD) and chief executive officer (CEO) of Bandhan Bank, has said that: "During the quarter, we have started collections post unlocking announced by the government. Overall Bank collections improved to 76% by end of June 20 compared to 29% in April 20. We continued to showcase the strengths of our retail deposit franchise with strong growth of 35% during this difficult time, especially CASA growing by over 47%. During the quarter the Bank has taken accelerated additional provision on standard advances amounting to Rs 750 crore taking the total additional provision in books to Rs 1,769 crore."
Bandhan Bank operates as a commercial bank. It has spread its presence to 34 of the 36 states and union territories in India with 4,559 banking outlets serving 2.03 crore customers, as on 30 June 2020.
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