Bandhan Bank Q1 profit dips 18.7% to ₹721 cr; NII marginally down

Private lender Bandhan Bank Ltd recorded an 18.7% decline in net profit to ₹721 crore during the April-June quarter of 2023-24 as compared to ₹890 crore net income in the year-ago period, Bandhan Bank says in a stock exchange filing.

The bank's net interest income dipped 0.9% to ₹2,490 crore as compared to ₹2,510 crore in the year-ago period. The bank's total income, including non-interest income, stood at ₹2,880 crore, up 1.1% on a YoY basis. Bandhan Bank's net interest margin for the quarter stood at 7.3% as of Q1 FY24, compared to 8% during the same period last year.

Bandhan Bank says its deposits grew 16.6% YoY to ₹1.08 lakh crore, while its loan portfolio grew 6.7% YoY to ₹1.03 lakh crore.

Chandra Shekhar Ghosh, managing director and CEO of Bandhan Bank says the first quarter’s performance indicates 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,” he adds.

Bandhan Bank's gross non-performing assets improved to 6.76% as of June 30, 2022, against 7.25% in the year-ago period, while its net NPA was 2.18% as of June 30, 2023.

During the said quarter, Bandhan Bank's commercial banking book grew 78% YoY, while retail loan books, other than housing finance books, grew 86.5%. The lender's housing finance book grew 9.5%, and its collection efficiency for the EEB book stood at 98% during the quarter under review.

Bank added nearly 7 lakh customers in Q1, and the total number of customers stood at 3.07 crore. Banking outlets as on June 30, 2023, stood at 6,140, including 1,542 branches, and 4,598 banking units. As of Q1, Bandhan Bank’s employee base stood at 72,000.

The bank also informed the exchanges about the board approval of the allotment of 3,152 equity shares of the face value of ₹10/- each fully paid up to the eligible employees under the ESOP Series 1.

"The equity shares so allotted under the ESOP Series 1 shall rank pari passu with the existing equity shares of the Bank in all respects including dividend. Post allotment, the issued and paid-up equity share capital of the Bank stands increased from ₹16,10,85,63,990/- comprising of 1,61,08,56,399 equity shares of ₹10/- each fully paid-up to ₹16,10,85,95,510/- comprising of 1,61,08,59,551 equity shares of ₹10/- each fully paid-up," the bank adds.

The Bandhan Bank stock, meanwhile, closed 2.71% up at ₹221.75 on the BSE today against the previous session close of ₹215.90. At the current share price, the lender's m-cap stands at ₹35,720.74 crore.