Shares of Bandhan Bank slipped 2.8 per cent to Rs 499 on the BSE on Tuesday after the bank put up a weak December quarter (Q3FY20) show on sequential basis. The lender's net profit declined 25 per cent to Rs 731 crore from Rs 971.79 crore logged in the September quarter of the current fiscal (Q2FY20), along with a deteriorating asset quality.
The net profit, however, missed street estimates. Analysts at ICICI Securities, for instance, had pegged the bank's PAT at Rs 803.8 crore.
The gross non-performing assets (GNPA) came in at Rs 1,181.96 crore in the quarter under review, up 11.1 per cent from Rs 1,064.21 crore reported in Q2FY20, and Rs 831 crore in Q2FY19. In percentage terms, the GNPA ratio came in at 1.93 per cent in Q3FY20, up from 1.76 per cent in the previous quarter. ICICI Securities had estimated the GNPA to come in at Rs 1,192 crore.
The net NPA (NNPA) came in at Rs 491.43 crore (0.81 per cent), up 45.9 per cent from Rs 336.87 crore (0.56 per cent) logged in Q2FY20.
Besides, the bank reported a net interest income (NII) of Rs 1,540.3 crore. It earmarked Rs 294.87 crore as provisions for the recently concluded quarter, as against provisions of Rs 145.54 crore in the September quarter of the current fiscal. It had created provisions of Rs 377.64 crore in Q3FY19.
"During the quarter, the Bank has made additional provision of Rs. 200 crore on standard advances in micro finance portfolio after evaluating risk observed in certain areas of a North Eastern State, though having a dwindling effect," it said in a statement.
The bank's performance, however, improved on a year-on-year basis due to low base effect. The net profit jumped 121 per cent YoY from Rs 331.26 crore logged in the same quarter last year (Q3FY19). Similarly, its NII grew 37 per cent from Rs 1,124 crore logged in Q3FY19.
At 1:09 pm, the bank pared most of its losses, and was trading at Rs 508.65 apiece, down 0.97 per cent. In comparison, the benchmark S&P BSE Sensex was at 41,875.67 level, up 0.04 per cent.