Bandhan Bank’s Q4 net profit rockets, as NPAs, provisions slump

Bandhan Bank reported robust numbers for the fourth quarter ended March 31, 2022 with profit growing manifold and the lender benefited from a sharp decrease in provisions while improving its asset quality.

Bandhan Bank’s net profit for the quarter rose over 18 times to Rs 1,902.3 crore, compared with just Rs 103 crore in the year-ago period. On a sequential basis, profit more than doubled from Rs 859 crore in the three months ended December 31, 2021.

Net interest income (NII) for the quarter grew 44.6% to Rs 2,539.8 crore as against Rs 1,757 crore in the corresponding quarter of the previous year. Non-interest income grew 37.7% to Rs 964.4 crore for the quarter ended March 31, 2022 against Rs 700.4 crore in the corresponding quarter of the previous year.

Badhan Bank’s share price shot up 4.34% to close at Rs 317.4 apiece in a weak Mumbai market on Friday.

Other Highlights

1) Operating profit for the quarter increased 53.5% to Rs 2,521.3 crore against Rs 1,642.8 crore in the corresponding quarter of the previous year.

2) Net Interest Margin (annualised) for the quarter ended March 31, 2022 stood at 8.7% against 6.8% in March 31, 2021.

3) Gross NPAs stood at Rs 6,380 crore (6.46%) against Rs 9,441.6 crore (10.81%) as on December 31, 2021.

4) Net NPAs as on March 31, 2022 stood at Rs 1,564.2 crore (1.66%) against Rs 2,413.1 crore (3.01%) as on December 31, 2021.

5) Provisions for the quarter was just Rs 4.7 crore compared to Rs 1507.7 crore in the same quarter a year ago.

6) Loan portfolio grew 14.1% year on year.

7) Deposits grew 23.5% YoY; CASA grew 18.5%; CASA ratio stood at 41.6% against 43.4% a year ago.

Management Commentary

Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said the bank recorded its best-ever performance during the quarter backed by robust operating performance and lower credit costs.

“Given the strong recovery and stable operating environment we are confident of further improving our performances during next fiscal (FY23) as well,” he said.