Bandhan Bank Q3 Results: Profit dips 66% YoY to Rs 291 crore; NII falls 2%

Kolkata-based private sector lender Bandhan Bank today reported a 66.2% YoY dip in its December quarter profit at Rs 290.6 crore, while its net interest income (NII) dropped 2.1% on-year to Rs 2,080.4 crore.

The bank's net NPAs as on December 31, 2022, improved to 1.9% against 3.0% as on December 31, 2021.

“The bank registered good growth in business in the third quarter on a year-on-year basis. In terms of asset quality and stress, we see the worst is behind us and expect overall business momentum to remain robust from Q4 FY23 onwards," Bandhan Bank MD and CEO Chandra Shekhar Ghosh said.

He said the bank’s diversification agenda is well on track and with the operating environment being favourable, it is well poised for its next phase of growth.

During the quarter, Bandhan Bank's total deposits increased by 21% to Rs 1,02,283.2 crore, while total advances grew 11.1% to Rs 97,787.1 crore.

The bank's PCR stood at 75.4% as on December 31, 2022, against 74.4% in the year-ago period while the capital adequacy ratio was at 19.1%.

During Q3, it added 9 lakh new customers with the total customer base reaching 28.6 million.

"Geographical diversification of EEB portfolio on track- West Bengal and Assam contribution is less than 45%, with West Bengal share at 36% and Assam share at 8% of EEB portfolio as on Q3 FY 2022-23," Bandhan Bank said in an exchange filing.

Its net interest margin reduced to 6.5% on a quarter-on-quarter basis. Bandhan Bank said its banking outlets as on December-end stood at 5,723, including 1,250 branches and 4,473 banking units. During the quarter, the number of employees of the bank has gone up from 64,078 to 66,114.

The bank said it has crossed the milestone of Rs 2 lakh crore of total business in a span of just over seven years of operations. The growth in its loan and deposit books was led by growth in distribution and favourable operating environment.

The current account and savings account (CASA) ratio now stands at 36.4% of the overall deposit book. With respect to advances, the bank saw 11% growth over the corresponding quarter of the previous year. The total advances are now at Rs 97,787 crore.

Shares of Bandhan Bank which have dropped around 18% in the last one year ended flat at Rs 237.05 today.