Bandhan Bank Q3 PAT declines 13% YoY to Rs 632 cr

Bandhan Bank reported a 13.4% fall in net profit to Rs 632.59 crore on a 25.5% rise in total income to Rs 3861.12 crore in Q3 December 2020 over Q3 December 2019.

Profit before tax stood at Rs 845.35 crore in Q3 December 2020, a decline of 12.7% over Rs 968.99 crore in the same period last year. The bank's tax expense reduced by 10.5% to Rs 212.76 crore in Q3 December 2020 over Q3 December 2019.

The bank's net interest income (NII) for the quarter grew by 34.5% year on year to Rs 2,071.7 crore in Q3 December 2020 from Rs 1540.3 crore registered in the corresponding quarter of the previous year. Net Interest Margin (annualised) for the quarter ending 31 December 2020 stood at 8.3% as against 7.9% in 31 December 2019.

Non-interest income grew by 54.7% year on year to Rs 553.3 crore for the quarter ended 31 December 2020 from Rs 357.7 crore in the corresponding quarter of the previous year. The micro finance lender's operating profit for the quarter increased by 51.4% to Rs 1,914.1 crore as against Rs 1,263.9 crore in the corresponding quarter of the previous year.

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 859.21 crore as on 31 December 2020 as against Rs 873.97 crore as on 30 September 2020 and Rs 1,181.96 crore as on 31 December 2019.

The ratio of gross NPAs to gross advances stood at 1.11% as on 31 December 2020 as against 1.18% as on 30 September 2020 and 1.93% as on 31 December 2019. The ratio of net NPAs to net advances stood at 0.26% as on 31 December 2020 as against 0.36% as on 30 September 2020 and 0.81% as on 31 December 2019.

Provisions and contingencies spiked by 262% to Rs 1068.73 crore in Q3 December 2020 from Rs 294.87 crore in the same period last year. During the quarter the bank has taken accelerated additional provision on standard advances amounting to Rs 1,000 crore. With this provision and additional standard assets provision that bank is carrying in micro banking portfolio total additional provision in books stands at Rs 3,119 crore.

Commenting on the performance, Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank said, This quarter showed robust performance operationally backed by higher growth, lower cost of funds and aided non-interest income and strong retail deposits & CASA. During the quarter, we have further strengthened the balance sheet by taking accelerated additional provision on standard advances amounting to Rs 1,000 crore taken for COVID-19. With Q4 historically been the best for us every financial year, we now look forward to similar performance in last quarter for this financial year as well.

Bandhan Bank's total Advances (on book + off book+TLTRO) grew by 22.6% to Rs 80,255.2 crore in Q3 December 2020 from Rs 65,456.1 posted in Q3 December 2019. Total deposits in Q3 December 2020 stood at Rs 71,188.3 crore, growing by 29.6% from Rs 54,908.5 crore in Q3 December 2019. CASA grew 62.0% year-on-year. CASA ratio stood at 42.9% against 38.2% quarter on quarter (QoQ).

The bank's capital adequacy ratio (CRAR) stood at 26.2% in Q3 December 2020 as compared to 25.7% in Q2 September 2020 and 24.7% in Q3 December 2019.

Bandhan Bank operates as a commercial micro finance bank. Its banking outlets as on 31 December 2020, stood at 5,197.

Shares of Bandhan Bank tumbled 5.22% to Rs 341.05 on Thursday.

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