Bandhan Bank Q1 results: Profit drops 19% to Rs 721 crore; asset quality improves

Bandhan Bank on Friday said its June quarter profit declined 18.67 per cent year-on-year (YoY) to Rs 721 crore from Rs 887 crore in the same quarter last year. On a sequential basis, profit fell 10.77 per cent over Rs 808 crore in the March quarter.

Net interest income (NII) for the quarter increased 11.53 per cent YoY to Rs 4,523 crore from Rs 4,055 crore in the same quarter last year. Non-interest income was up 16.78 per cent to Rs 385 crore from Rs 330 crore.

Bandhan Bank said its commercial banking book grew 78 per cent YoY while its retail loan books, other than housing finance, book grew 86.5 per cent. Housing finance book was up 9.5 per cent, Bandhan Bank said.

The private lender made Rs 4,820 crore in the June quarter compared with Rs 4,070 crore in March and Rs 5,220 crore in in the year-ago quarter. Gross non-performing assets as percentage of total advances stood at 6.8 per cent against 7.3 per cent in the year-ago quarter. Gross NPA (%), however, deteriorated over the 4.9 per cent level seen in the March quarter.

"Our collection efficiency for the EEB book stands at 98 per cent, However, Assam & WB collection efficiency is at 99 per cent in line with our diversification agenda, banks’ presence outside of the East region is more than 50 per cent," Bandhan Bank said.

Managing Director and CEO Chandra Shekhar Ghosh said: “This quarter’s performance indicates that the bank is on a stable growth path. The bank has also made significant progress in diversifying its asset book. Our investment in people, Technology, IT & expansion over the last few quarters will surely improve the performance of the bank”.

Bandhan Bank added nearly 7 lakh customers in the June quarter with the total number of customers standing at 3.07 crore. Banking outlets as on June 30 stood at 6,140. The network consists of 1,542 branches, and 4,598 banking units. During the quarter, the number of employees of the bank has gone above 72,000.

Also read: TCS vs Wipro vs HCL Tech shares: How 3 top IT firms fared, stock price targets & more

Also read: Hot stocks on July 14, 2023: JBM Auto, Titagarh Rail, Mazagon Dock, Brightcom Group, others