Bandhan Bank Q3 profit surges over two-fold to Rs 731 cr

Bandhan Bank on Tuesday reported over two-fold jump in net profit to Rs 731.03 crore for the third quarter ended December 31, 2019.

The private sector lender had logged a profit of Rs 331.25 crore in October-December, 2018-19.

Total income increased to Rs 3,075.31 crore in the quarter under review as against Rs 1,883.65 crore in the year-ago period, Bandhan Bank said in a statement.

Gross non-performing assets (NPAs) declined to 1.93 per cent of the total advances during the quarter, against 2.41 per cent at the end of third quarter of the previous fiscal.

However, net NPAs of the bank rose slightly to 0.81 per cent in the quarter from 0.70 per cent of the net advances.

During the quarter, the bank made additional provision of Rs 200 crore on standard advances in microfinance portfolio after evaluating the risk observed in certain areas of a northeastern state, though having a dwindling effect.

The Net Interest Income grew 37.10 per cent to Rs 1,541 crore as against Rs 1,124 crore in the corresponding quarter of the previous year.

"The merger of erstwhile Gruh Finance with Bandhan Bank had been approved by the RBI, Competition Commission of India, stock exchanges, respective shareholders and creditors of each entities as applicable and the National Company Law Tribunals (NCLT) Bench at Kolkata and Ahmedabad, with appointed date as January 1, 2019 and effective date as October 17, 2019," it said.

Accordingly, the scheme had been given effect to in the financial results for December quarter, it said, adding, the figures for the quarter are not comparable with the corresponding figures of the previous year/periods in view of the amalgamation.

The Committee of Directors of the bank at its meeting held on October 21, 2019 has approved the allotment of 41,69,48,659 equity shares of face value of Rs 10 each, fully paid up, to the eligible equity shareholders of erstwhile Gruh Finance based on record date of October 17, 2019.