Bandhan Bank spurts after robust Q2 numbers

Bandhan Bank rose 5.05% to Rs 584 after net profit jumped 99.28% to Rs 971.79 crore on a 66.15% rise in total income to Rs 3,050.54 crore in Q2 September 2019 over Q2 September 2018.

The result was announced during trading hours today, 24 October 2019.

Gross non-performing assets (NPAs) stood at Rs 1,064.21 crore as on 30 September 2019 as against Rs 1,019.70 crore as on 30 June 2019 and Rs 413.34 crore as on 30 September 2018.

The ratio of gross NPAs to gross advances stood at 1.76% as on 30 September 2019 as against 1.7% as on 30 June 2019 and 1.29% as on 30 September 2018.

The ratio of net NPAs to net advances stood at 0.56% as on 30 September 2019 as against 0.59% as on 30 June 2019 and 0.69% as on 30 September 2018.

Provisions and contingencies rose 17.21% to Rs 145.54 crore in Q2 September 2019 over September 2018.

Net Interest Income (NII) (consolidated) for the quarter grew by 41.84% to Rs 1,529 crore as against Rs 1,078 crore in the corresponding quarter of the previous year.

Non-interest income (consolidated) grew by 56.96% to Rs 361 crore for the quarter ended 30 September 2019 against Rs 230 crore in the corresponding quarter of the previous year.

CASA ratio stood at 33% of total deposit (excluding GRUH deposits at 35%), compared to 36.90% in the corresponding period last year.

Commenting on the performance, Chandra Shekhar Ghosh, managing director and CEO of Bandhan Bank said, "Our performance this quarter has been good. There has been a strong growth in Deposits and Advances with record growth in profits. As we step into the second half of the financial year we feel more confident given our current performance. Historically second half year has always been better than first half year. Having completed the merger in record time, we now look forward to enhancing the Housing Loan business with the expertise of the well experienced team and the well tested model coupled with our large distribution network and customer base."

Meanwhile, the S&P BSE Sensex was up 182 points or 0.47% to 39,146.06. The Nifty Bank index was up 0.13% at 29,498.30.

On the BSE, 96,000 shares were traded in the counter so far compared with average daily volumes of 6.56 lakh shares in the past two weeks. The stock hit a 52-week high of Rs 638.05 on 15 October 2019 and a 52-week low of Rs 369.15 on 26 October 2018.

The stock has outperformed the market over the past one month, up 5.32% compared with 0.08% fell in the Sensex.

Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated markets in India. The bank is the first instance in India of a microfinance entity transforming into a universal bank.

Bandhan Bank completed the merger with Gruh Finance Bank on 17 October 2019.

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