Bandhan Bank Q1 FY22 PAT slides 32% to Rs 373 cr

The bank's standalone net profit dropped 32.1% to Rs 373.08 crore on a 15.8% rise in total income to Rs 3,943.37 crore in Q1 June 2021 over Q1 June 2020.

Standalone profit before tax skid 32.5% to Rs 496.21 crore in Q1 June 2021 as against Rs 735.12 crore in Q1 June 2020. The Q1 earnings was declared after market hours yesterday, 30 July 2021.

The bank's gross non-performing assets (NPAs) grew 539.77% to Rs 6,440.38 crore as on 30 June 2021 as against Rs 1,006.66 crore as on 30 June 2020. The ratio of gross NPAs to gross advances stood at 8.18% as on 30 June 2021 as against 1.43% as on 30 June 2020. The ratio of net NPAs to net advances stood at 3.29% as on 30 June 2021 as against 0.48% as on 30 June 2020.

Provision and Contingencies expanded 61.92% to Rs 1,374.87 crore in Q1 June 2021 over Rs 849.06 crore in Q1 June 2020. Provision coverage ratio (PCR) stood at 62% at 30 June 2021. In addition to this, Bandhan Bank carried additional standard assets provision amounting to Rs 323 crore and provision on restructured assets amounting to Rs 529 crore.

Net Interest Income (NII) for the quarter jumped 16.7% to Rs 2,114.10 crore as against Rs 1,811.50 crore in the corresponding quarter of the previous year. Non-Interest Income grew 37.7% to Rs 533.40 crore for the quarter ended 30 June 2021 against Rs 386.80 crore in the corresponding quarter of the previous year. Operating profit for the quarter spurted 18.1% to Rs 1,871.10 crore against Rs 1,584.20 crore in the corresponding quarter of the previous year.

Net Interest Margin (annualised) for the quarter ended 30 June 2021 stood at 8.5% against 8.2% in 30 June 2020. Total Advances (on book + off book + TLTRO + PTC) grew 8.1% to Rs 80,356.90 crore as on 30 June 2021 against Rs 74,330.5 crore as on 30 June 2020. Total Deposits increased 27.6% to Rs 77,335.50 crore as on 30 June 2021 as compared to Rs 60,610 crore as on 30 June 2020.

Commenting on the Q1 performance, Chandra Shekhar Ghosh, the managing director (MD) and chief executive officer (CEO) of Bandhan Bank, has said that: "Collections continues to improve with covid restrictions getting relaxed. Typically, second half of the financial year is always better for the bank in terms of growth and collections. With easing of covid second wave and upcoming festive season, we are confident of achieving better performance going forward."

Bandhan Bank operates as a commercial bank. Its banking outlets as on 30 June 2021 stood at 5,574. The network consists of 1,152 branches, 4,422 banking units as against 1,018 branches and 3,541 banking units as on 30 June 2020. The total number of ATMs stood at 487 as on 30 June 2021 against 485 as on 31 June 2020.

Shares of Bandhan Bank slipped 0.43% to end at Rs 291.30 on Friday, 30 July 2021.

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