Bandhan Bank Q4 profit jumps manifold, asset quality improves

The private sector lender Bandhan Bank reported on Friday a huge 18-fold jump in net profit to Rs 1,902.34 for the fourth quarter of the previous fiscal year, compared to Rs 103.03 crore a year ago, due to the increase of both interest and non-interest income and reduced provisions.

Asset quality improved as non-current assets (NPA) decreased by 9.75% on an annual basis to Rs 5,757.76 in absolute terms, compared to Rs Rs 6,380 in the same quarter a year ago. On a quarterly basis, NPAs decreased by 39.02% from Rs 9,441.57, according to a stock exchange announcement. On an annual basis, the gross NPA ratio decreased by 35 basis points to 6.46% from 6.81%.

Provisions (excluding tax) for the quarter decreased sharply to Rs 4.7 crore, compared to Rs 1,507.70 crs in the March 2021 quarter, the bank said.

Commenting on the results for the fourth quarter, President and CEO Chandra Shekhar Ghosh said that the recovery from NPA accounts improved significantly, NIM increased, operating profit increased and credit costs decreased to around zero. “The cost of credit was zero because no new deviations occurred and collections improved,” Ghosh told FE, adding that there was no NPA depreciation during the quarter.

In addition to NPA accounts, collection efficiency has returned to pre-Covid levels. About 90% of our NPA customers pay, ”he said. At the end of the March quarter, for the EEB segment (formerly the microbank segment), the collection efficiency, excluding NPA, was 99%, compared with 97% at the end of the December quarter.

The lender’s total advances (on book + off book + TLTRO + PTC) increased by 14.1% to Rs 99,338.1 crore on March 31, 2022, compared to Rs 87,042 crore on March 31, 2021. Total deposits increased by Rs 23. 6%, 3.0 crore Rs. compared to Rs 77,972.2 crore on March 31, 2021.

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