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Bandhan Bank beats D Street expectations; Q1 profit rises 46%, asset quality improves

Net interest margin improved to 10.45 percent in June quarter, from 10.27 percent in year-ago period but contracted on sequential basis from 10.69 percent.

July 19, 2019 / 03:25 PM IST
 
 
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Kolkata-based private sector lender Bandhan Bank kicked off FY19-20 with healthy growth across parameters as profit shot up 45.6 percent YoY in June quarter to Rs 701.1 crore despite higher provisions YoY.

Profit in the corresponding period last fiscal stood at Rs 481.7 crore.

Net interest income during the quarter increased 36 percent to Rs 1,410.4 crore compared to the same period last fiscal with loan growth at 39.4 percent YoY. Meanwhile, the deposit portfolio grew 42.33 percent YoY.

"The year 2019-20 has started on a promising note with asset growth at 39.36 percent along with stable asset quality. During the year we expect the Gruh merger to get consummated which will bring diversification and will add to growth," Chandra Shekhar Ghosh, Managing Director and CEO said.

Numbers were far ahead of analyst estimates on July 19. Profit was expected at Rs 663.8 crore and revenue at Rs 1,388.4 crore for the quarter, according to a CNBC-TV18 poll estimates.

Net interest margin improved to 10.45 percent in the June quarter, from 10.27 percent in the year-ago period but contracted on sequential basis from 10.69 percent.

Other income (non-interest income) surged 48 percent year-on-year to Rs 312.2 crore and operating profit grew by 47 percent to Rs 1,207.6 crore in Q1FY20.

Asset quality improved on sequential basis with gross as well as net non-performing assets falling 2bps each to 2.02 percent and 0.56 percent, respectively, in June quarter.

Provisions for bad loans increased sharply by 57 percent to Rs 125.4 crore compared to year-ago but fell 18 percent sequentially.

Moneycontrol News
first published: Jul 19, 2019 03:25 pm

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