Bandhan Bank, a leading private sector bank, has reported a growth of 47.4% in its net profit during the second quarter that ended in September 2018, as a result of strong operating income and NII and stable asset quality.
The bank’s net profit during the period under review rose to a sum of Rs.488 crore, in comparison to Rs.331 crore in the previous financial year. The net interest income, which is the difference between the total interest earned and the interest spent, increased 55.6% YoY to touch Rs.1,078 crore in the second quarter with strong growth in advances and improvement in the net interest margin.
The NIM for the period under review stood at 10.3%, which was up by 100 basis points from 9.3% that was reported in the year-ago period. The private sector lender also said that its on-book and off-book advances increased by a total of 50.9% YoY to Rs.33,373 crore. Bandhan Bank’s deposits also increased by 29.6% to touch Rs.32,959 crore during the quarter that ended in September 2018, in comparison to Rs.25,442 crore in the second quarter of 2017.
Bandhan Bank’s microcredit advances increased to 87% of the total advances. The CASA ratio for the quarter increased to 36.9% of the total deposit, in comparison to 28.2% in the second quarter of the previous fiscal.
The gross NPA of Bandhan Bank increased 48% to touch Rs.413.35 crore during Q2FY19, from Rs.279.15 crore in the year-ago period. The contingencies and provisions of the lender increased by 55% sequentially and 43% YoY to Rs.124.17 crore in the second quarter of the current fiscal.
Further Bandhan Bank’s non-interest income increased by 3.1% to Rs.230 crore and the operating profit increased 46.9% to Rs.874 crore during Q2FY19, in comparison to the corresponding period in the previous fiscal.
As on June 2018, the promoters of Bandhan Bank held an 82.28% stake in the bank, which was later lowered to 75% in accordance with the Securities and Exchange Board of India’s (SEBI) minimum public shareholding guidelines. The public shareholding in the bank has, thus, increased to 25%.
Sources: The Times of India, Moneycontrol