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Bandhan Bank Q3 results: Private lender’s profit rises 10%, asset quality worsens; key highlights

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Bandhan Bank Q3 results: Bandhan Bank on Thursday posted a 10.4 per cent rise in profit in the quarter ended December on account of rise in interest income. The net profit was Rs 331.3 crore in the period as compared to Rs 300 crore year earlier, said the private lender.

However, the asset quality of the bank which was listed last year worsened with gross bad loans as a percentage of total loans standing at 2.41 per cent at the end of December, compared with 1.29 per cent in the previous quarter and 1.67 per cent a year earlier.

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The lender made a provision of Rs 385 crore for its exposure to a borrower from the infrastructure development and finance sector, the bank said. Total provisions, after accounting for a writeback for treasury investments, more than tripled to 3.78 billion rupees.

Key highlights

Net Interest lncome (Nll) for the quarter grew by 53.5% at Rs 1124 crore as against Rs 732 crore in the corresponding quarter of the previous year.

Non-interest income grew by 4.81 per cent at Rs 234 crore for the quarter ended December 31, 2018 against Rs 158 crore in the corresponding quarter of the previous year

Operating profit for the quarter increased by 56.8% at Rs 900 crore against Rs 1,574 crore in the corresponding quarter of the Previous Year.

Net interest Margin (NlM) for the current quarter stands at 70.3 per cent against 9.9 per cent in the corresponding quarter of the previous year and 9.7 per cent for FY 2017-18

CASA ratio at 41.4 per cent of total deposit, compared to 33.2 per cent in the corresponding period last year

CASA grew 7O.7 per cent Y-o-Y at Rs 14,342 crore compared to Rs 8,401 crore.

Tota| Advances (on book + off book) increased by 46.1 per cent of Rs 35,599 crore as on December 31, 2018 against Rs 24,364 crore as on December 31,2017

Total Deposits grew by 36.9 per cent as on December 31, 2018 is at Rs 34,639 crore as compared to Rs 25,294 crore on December 31, 2017.