Bandhan Bank Q4 PAT slides 20% on Covid-19 provisioning

Bandhan Bank on Tuesday (12 May) said its net profit fell 20.5% to Rs 517.28 crore on 50.7% rise in total income to Rs 3,346.47 crore in Q4 March 2020 over Q4 March 2019.

Net interest income (NII) for the quarter grew by 33.57% to Rs 1,680 crore as against Rs 1,258 crore in the corresponding quarter of the previous year. The result was announced at the fag end of trading session today (12 May 2020).

Provisions and contingencies surged 439.78% to Rs 827.36 crore in Q4 March 2020 from Rs 153.27 crore in Q4 March 2019. During the quarter the bank has taken COVID-19 related provision amounting to Rs 690 crore.

The bank's gross non-performing assets (NPAs) stood at Rs 992.77 crore as on 31 March 2020 as against Rs 1181.96 crore as on 31 December 2019 and Rs 819.55 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 1.48% as on 31 March 2020 as against 1.93% as on 31 December 2019 and 2.04% as on 31 March 2019. The ratio of net NPAs to net advances stood at 0.58% as on 31 March 2020 as against 0.81% as on 31 December 2019 and 0.58% as on 31 March 2019.

The private lender's net profit rose 54.94% to Rs 3,023.73 crore on 61.36% rise in total income to Rs 12,434.69 crore in the year ended March 2020 over the year ended March 2019.

Total deposits increased 32.04% to Rs 57,802 crore as on 31 March 2020 as compared to Rs 43,232 crore as on 31 March 2019 and 3.96% against Rs 54,908 crore as on 31 December 2019. CASA grew 19.36% year-on-year (YoY). CASA ratio stood at 36.84% (excluding GRUH deposits 37.70%) against 34.31% quarter on quarter (QoQ).

Total advances (on book + off book) grew by 60.46% to Rs 71,846 crore as on 31 March 2020 against Rs 44,776 crore as on 31 March 2019 and 9.76% against Rs 65456 crore as on 31 December 2019.

Commenting on the performance, Chandra Shekhar Ghosh, managing director and CEO of Bandhan Bank said: "Q4FY20 has been a satisfying quarter given the challenges faced during the quarter. During the quarter, the bank has showcased the strengths of its deposit franchise with continuously growing deposits in all the segments. The Bank has made additional COVID 19 related provision on standard advances amounting to Rs 690 crore. We further endeavor to work with our employees and customers ensuring to be at the service in this critical time."

Bandhan Bank operates as a commercial bank. The Bank provides accounts checking, savings deposits, money market, mortgage, and term loans services, as well as card facilities and Internet banking services. As at 31 March 2020, the total number of Branches, 'Door Step Service Centers' (DSCs), GRUH Centers and ATM network stood at 1018, 3346, 195 and 485 respectively.

Shares of the private bank fell 2.36% to end at Rs 233.95 on Tuesday (12 May 2020).

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