Bandhan Bank posts 18% rise in PAT in Sept Quarter

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The Board of Directors of Bandhan Bank Ltd approved the bank’s earnings for the quarter ended September 30, 2017, at their meeting held in Kolkata on Thursday, October 26. The accounts are subjected to the ‘Limited Review’ by the statutory auditors of the bank.

There has been a substantial rise in both the bank’s net interest income as well as non-interest income, leading to a 27.62% jump in Bandhan Bank’s operating profit for the quarter. After tax and other provisions, it has posted a net profit of Rs.331 crore, 18.21% higher than the net profit of the corresponding quarter of the previous year.

Other highlights of the bank’s September quarter earnings include a 23.42% year-on-year rise in its total advances (including IBPCs and assignment of the portfolio) in the quarter at Rs. 22,111 crore and even a higher 42.29% growth in its deposit portfolio at Rs. 25,442 crore. The low-cost CASA in the September quarter accounted for 28.18% of deposits, up from 16.71% in the year-ago period.

Commenting on the bank’s earnings, Mr Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank, said: “I am happy with the all-round progress that the bank is making in every quarter. The bank has continuously been adding to its bouquet of loan and deposit products. Equipped with right technology, we are cutting down the delivery time of loans; and we are taking meticulous care to maintain the quality of assets. We have already appointed the merchant bankers for our proposed initial public offering (IPO) and are preparing ourselves for the public issue.”

The bank’s net interest margin (NIM) in the September quarter was 9.33%, lower than 10.17% in the corresponding quarter of the previous year, as it has been striving to pare its loan rates. This benefits individual entrepreneurs at the so-called bottom of the pyramid and the small and medium enterprises.

The bank’s gross non-performing assets (NPAs) rose to 1.26% in the September quarter from 0.82% in June and the net NPAs 0.67% from 0.49%.

The Capital Adequacy Ratio of the bank as on 30 September 2017 was 26.25% with Tier 1 Capital Adequacy Ratio at 24.86% — significantly higher than regulatory requirement.

Some of the other highlights of the financials : (barring net worth, all in per cent)

                                                                                                   

Particulars

H1 FY18

H1 FY17

Q2 FY18

Q2 FY17

Q1 FY18

Cost to Income ratio

35.35%

34.66%

35.06%

33.51%

35.65%

 

CRAR

Net worth

5104

3857

5104

3857

4773

CASA

28.18%

16.71%

28.18%

16.71%

26.33%

RoA

4.28%

4.59%

4.18%

4.69%

4.40%

RoE

27.23%

28.79%

26.40%

29.66%

28.10%

 

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