Private sector lender Bandhan Bank on Wednesday reported a 47% jump in its net profit at ₹488 crore for the quarter ended September 30, 2018, from ₹331 crore a year ago. The management attributed the rise to a robust growth in net interest income (NII), which came in at Rs 1,078 crore, up nearly 56% from last year.
Net interest margin, too, improved to 10.3%, up from 9.3% in the corresponding quarter of the last financial year. The bank’s loan portfolio recorded 51% growth; deposits grew 30% year-on-year, with its CASA (current account-savings account) ratio at 37%.
On the asset quality front, net NPA (non-performing asset) ratio marginally worsened, on a sequential basis, to 0.7% in the September quarter, from 0.6% in the previous quarter. Gross NPA as a percentage of total loans stood at 1.3%, compared to 1.4% a year ago.
On September 28, the Reserve Bank of India had barred Bandhan Bank from opening any new branch and also froze the remuneration of managing director and chief executive Chandra Shekhar Ghosh. This was because promoter shareholding in the bank is currently at a little over 82%; the lender was supposed to reduce it to 40% by August, but failed to do so.
However, the bank said it was in process of finalising a plan to do so and will submit it to the RBI shortly. “We are committed to maintain the compliance and a good strategic plan has been prepared,” Ghosh said during a post-results media conference.
Chief financial officer Sunil Samdani said the bank was looking at three options to reduce promoter shareholding—an offer for sale, a merger, or fundraising.
The Bandhan Bank stock on Wednesday closed 5.6% higher at ₹ 512.05 on the BSE.