Bandhan Bank’s Q3 net rises more than twofold

Kolkata-based private sector lender Bandhan Bank on Monday reported more than a twofold jump in its net profit to ₹731 crore in the quarter ended December 2019 from ₹331 crore a year ago.

However, the current earning numbers are not strictly comparable with the corresponding numbers of the previous year due to Gruh Finance’s merger with the bank in October last year.

Bandhan Bank’s net interest income during the December quarter grew 37% to ₹1,541 crore from ₹1,124 crore in the same period the previous year. Non-interest income also grew 53% to ₹358 crore on a year-on-year basis.

Net interest margin stood at 7.9% in the December quarter for the merged entity compared to 10.5% on a standalone basis in the corresponding quarter of the previous year. Total advances increased by 84% to ₹65,456 crore in the third quarter, while total deposits grew 58.5% to ₹54,908 crore on a year-on-year basis.

Bandhan Bank said it had made an additional provision of ₹200 crore on standard advances in the microfinance portfolio since it observed some risk in certain areas in the north-eastern region.

The private lender’s asset quality remained stable, with the standalone gross non-performing assets (NPA) declining to 1.9% from 2.4%; and net NPA improved marginally to 0.8% from 0.7% a year ago.

“Q3 (the December quarter) FY20 has been a satisfying quarter, given the challenges faced during the quarter. Last quarter has witnessed strong customer growth on advances, and deposit growth has been highest over the last four quarters. I am positive and confident on the business and growth going forward,” Chandra Shekhar Ghosh, managing director and chief executive of Bandhan Bank, said.

Bandhan Bank added 7.3 customers during the December quarter and the total customer base was 19 million; its capital adequacy ratio was 24.69% during the third quarter.

On Monday, shares of Bandhan Bank gained 1.03% to close at ₹518.95, while the benchmark S&P BSE Sensex closed 0.22% higher at 41,952.63 points.