Bandhan Bank Q4 profit rises 127%

Performance was on the back of healthy growth in its microfinance portfolio

Kolkata-based private sector lender Bandhan Bank on Thursday reported 127.46 per cent rise in its fourth quarter profit, as it continued to see healthy growth in its microfinance portfolio.

Profit for the quarter ended March was at Rs 323 crore, compared with Rs 142 crore in the year-ago period. This was also the first full year of the bank in which it posted a profit of Rs 1,111 crore. 

Net interest income of the bank for the full year was at Rs 2,403.50 crore. Advances grew 51 per cent for the full year. Nearly 91 per cent of the portfolio consisted of microfinance loans. Going forward, the bank will increase its loan offering to other retail products such as loans for affordable housing, SME etc, but will also continue to focus on microfinance to create capabilities in unbanked people, Chief Executive Officer and Managing Director Chandra Shekhar Ghosh said in an interaction with reporters.

The net interest margin of the bank was at 10 per cent, largely because the high rate of interest on microfinance loans and also because of the huge Interbank Participation Certificate (IBPC), or priority sector loans the bank lent to other banks during the year.