Bandhan Bank reports turnaround Q2 earnings

The private lender reported a net profit of Rs 209.27 crore in Q2 FY23 as against a net loss of Rs 3,008.60 crore recorded in Q2 FY22.

Total income jumped 14.69% to Rs 4,249.87 crore in Q2 FY23 from Rs 3,705.39 crore posted in the corresponding quarter previous year.

The company posted a pre tax profit of Rs 273.22 crore in the second quarter as against a pre tax loss of Rs 4,028.69 crore registered in Q2 FY22.

Net interest income (NII) increased by 13.3% year on year (YoY) to Rs 2,193 crore in Q2 FY23. Net interest margin (NIM) in Q2 FY23 stood at 7% as compared to 7.6% reported in the same period last year.

Operating profit declined 2% to Rs 1,552.9 crore in quarter ended 30 September 2022 from Rs 1,584.8 posted in Q2 FY22. Provision (other than taxes) slumped 77.2% to Rs 1,279.7 crore in Q2 FY23 from Rs 5,613.5 crore in Q2 FY22.

On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 6,853.85 crore as on 30 September 2022 as against Rs 6,967.55 crore as on 30 June 2022 and Rs 8,763.60 crore as on 30 September 2021.

The ratio of gross NPAs to gross advances was at 7.19% as on 30 September 2022 as against 7.25% as on 30 June 2022, 10.82% as on 30 September 2021.

The ratio of net NPA to net advances stood at 1.86% as on 30 September 2022 as compared with 1.92% as on 30 June 2022, 3.04% as on 30 September 2021.

Provision coverage ratio (PCR) stood at 75.5% as on 30 September 2022 from 74.1% as on 30 September 2021

Total Advances (on book + off book + TLTRO + PTC) grew by 17.4% to Rs 95,834.9 crore as on 30 September 2022 as against Rs 81,661.2 crore as on 30 September 2021.

Total Deposits jumped 21.3% to Rs 99,365.8 crore as on 30 September 2022 as compared to Rs 81,898.3 crore as on 30 September 2021.

Tier-1 was at 18.4% as on 30 September 2022. Capital Adequacy Ratio (CRAR) stood at 19.4% as on 30 September 2022 as against 20.4% as on 30 September 2021.

The bank's Return on Assets (ROA) and Return on equity (ROE) stood at 0.6% and 4.5%, respectively in the quarter ended 30 September 2022.

Bandhan Bank operates as a commercial bank. The banking outlets as on 30 September 2022, stood at 5,646. The network consists of 1,190 branches, 4,456 banking units as against 1,168 branches and 4,450 banking units as on September 30, 2021. Total number of ATMs stood at 432 as on 30 September 2022 against 487 as on 30 September 2021. During the quarter, the number of employees of the bank has gone up from 61,247 to 64,078.

Shares of Bandhan Bank declined 2.12% to Rs 265.20 on the BSE.

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