Bandhan Bank Q4 results: Profit plunges 57% to Rs 808 crore; lender declares Rs 1.50 dividend

Bandhan Bank on Thursday reported a 57.51 per cent year-on-year (YoY) plunge in net profit at Rs 808.29 crore for the March quarter compared with a profit of Rs 1,902.34 crore in the corresponding quarter last year. The profit figure was hit by a sharp surge in provisions on an yearly basis. Sequentially, provisions nearly halved. The profit degrowth figure came largely in line with analyst estimates of 50-60 per cent.

Net interest income (NII) for the quarter fell 2.7 per cent YoY to about Rs 2,470 crore compared with Rs 2,540 crore in the year-ago quarter. The bank board has recommended a dividend of Rs 1.50 for FY23. Non interest income for the quarter fell 35 per cent YoY to Rs 629 crore from Rs 970 crore.

Net interest margin (NIM) stood at 7.3 per cent in the March quarter against 6.5 per cent in the December quarter. NIM in the year-ago quarter stood at 8.7 per cent.

Gross non-performing assets (NPAs) as percentage of advances stood at 4.87 per cent for the quarter compared with 7.15 per cent in December and 6.46 per cent in the year-ago quarter, Bandhan Bank said.

Provisions for the quarter stood at Rs 734.76 crore compared with Rs 1,541.49 crore in December and Rs 4.72 crore in the year-ago quarter.

MD & CEO Chandra Shekhar Ghosh said: “The bank registered good growth in the fourth quarter with EEB business coming back to normalcy. We are building new capabilities to unlock greater business impact. Our new business streams such as commercial vehicle lending, loans against property for business, government business operations, among others, will add to the top line as well as the bottom line over the next few quarters."

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