Bandhan Bank Q1 FY18 Net Profit up by 35% at Rs. 327 crore on a YoY basis

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Mr Chandra Shekhar Ghosh

The Board of Directors of Bandhan Bank Limited approved the Bank’s results for the quarter ended June 30, 2017 at their meeting held in Kolkata on Wednesday, July 26, 2017. The accounts have been subjected to a ‘Limited Review’ by the statutory auditors of the Bank.

Performance highlights for the quarter ended June 30, 2017:                                     (Rs. in crore)

 

Particulars

Q1 FY18

Q1 FY17

Annual Figure

FY 16-17

Net Interest Income

743

538

2404

Non-Interest Income

122

63

411

Operational Expense

308

216

1023

Operating Profit

557

385

1792

Provisions other than tax

55

13

88

Profit Before Tax

502

372

1704

Profit After Tax

327

242

1112

Gross NPA

0.82%

0.22%

0.38%

Net NPA

0.49%

0.14%

0.26%

CRAR

26.12%

29.33%

26.36%

Cost to Income ratio

35.65%

36.00%

36.31%

Gross Advances

21389

15843

23543

Deposits

22439

14849

23229

Net worth

4773

3577

4446

CASA

26.33%

14.67%

29.43%

RoA

4.40%

4.47%

4.47%

RoE

28.10%

27.83%

28.51%

 

 

·         Net interest income (NII) for the quarter was Rs. 743 crore as against Rs. 538 crore in the corresponding quarter of the previous year, registering a robust growth of 38.10%.

·         Non-interest income for the quarter was Rs. 122 crore as against Rs. 63 crore in the corresponding quarter of the previous year, recording a growth of 93.65%.

·         Operating Profit for the quarter was Rs. 557 crore as against Rs. 385 crore in the corresponding quarter of the previous year, showing growth 44.68%.

·         Net Profit for the quarter was Rs. 327 crore as against Rs. 242 crore in the corresponding quarter of the previous year, showing growth 35.12%.

·         Net Interest Margin (NIIM) for the current quarter was 10.75% as against 10.62% in the corresponding quarter of the previous year, showing growth 13bps.

·         CASA (Current Accounts-Saving Accounts) Ratio for the current quarter was 26.33% against 14.67% in the corresponding quarter of the previous year.

·         Total Advances (on book plus off book) as on June 30, 2017 was at Rs. 21389 crore as compared to Rs. 15843 crore on June 30, 2016, recording growth of 35.01%.

·         Total deposits as on June 30, 2017 was at Rs. 22439 crore as compared to Rs. 14849 crore as on June 30, 2016, up by 51.11%.

 

 

Deposit Portfolio:

 

Since inception Bandhan Bank has recorded a healthy deposit portfolio of Rs. 22439 crore. The Bank continues to witness a robust CASA growth with the CASA balance as on June 30, 2017 stood at Rs. 5908 crore as against Rs. 2178 crore in June 30, 2016, demonstrating significant momentum in the Retail banking platforms.

Credit Portfolio:

Gross Advances* as on June 30, 2017 was at Rs. 21389 crore as compared to Rs. 15843 crore on June 30, 2016, recording growth of 35.01%. The retail advances constituted nearly 100% of the loan portfolio of the Bank.

*These are before assignment / IBPC. On book advances as on 30th June, 2017 stood at Rs.18813 crore and on 30thJune, 2016 at Rs.13359 crore.

Capital Adequacy:

The Capital Adequacy Ratio of the Bank as on 30th June 2017 was 26.12% with Tier 1 Capital Adequacy Ratio at 24.57%; significantly higher than regulatory requirement.

Network:

Bandhan Bank operates across 33 States and Union Territories through a network of 840 branches, 2444 Doorstep Service Centres and 382 ATMs. It has a customer base of 11 Million, served by 24,246 employees.

 

Technology initiative:

Soon after its inception, Bandhan Bank introduced Mobile Banking and Internet Banking for its customers. It also offers International Debit Card in partnership with Visa International. Bandhan’s field staff use 12,400 Point of Sale or PoS machines, enabling doorstep banking to its millions of customers.

Commenting on the performance, Mr Chandra Shekhar Ghosh, Founder, Managing Director & CEO, Bandhan Bank, said“I am happy to announce that our operations as a universal bank has been smooth in the first quarter of FY18. Despite spending on technology, infrastructure and new employees, the Bank has posted a decent profit. A very high capital adequacy ratio shows our financial robustness. The growth in deposits, including current and savings accounts, is also very encouraging. During the last quarter, we introduced a string of products in the NRI service segment and we will continue to offer new products and personalised services to all our customers, going forward.

 

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