Bandhan Bank declines after Q4 business update

Bandhan Bank declined 4.63% to Rs 183.40 despite the bank reporting strong growth in advances and deposits in Q4 March 2020.

Bandhan Bank's loans & advances (on book + off book) rose 10% to Rs 71,825 crore in Q4 March 2020 as against Rs 65,456 crore in Q3 December 2019.

Total deposit stood at Rs 57,073 crore in Q4 March 2020, rising 4% quarter on quarter (QoQ) compared with Rs 54,908 crore in Q3 December 2019. Retail deposits grew at 7% QoQ to Rs 44,760 crore in Q4 March 2020.

CASA deposit rose 12% QoQ to Rs 21,028 crore in Q4 March 2020 compared with Rs 18,839 crore in Q3 December 2019. The bank's CASA Ratio rose to 36.8% in Q4 March 2020 from 34.3% in Q3 December 2019.

 

Micro banking Deposits to Total Deposits ratio rose to 5.7% in Q4 March 2020 from 5.1% in Q3 December 2019

Liquidity coverage ratio (LCR) as on 31 March, 2020 stood at about 161%. As on 31 March 2020 the bank was having excess liquidity amounting to about Rs 8,402 crore. In addition to above bank is in a position to draw upto Rs 1815 crore under MSF of RBI. As on 31 March 2020, Capital Adequacy stood at 26.7%, Tier 1 Common Capital Ratio (CET 1) ratio stood at 25.5%.

The bank said its collection efficiency pan India for the period from 1 January 2020 till 21 March 2020 stands at 98.7%. Total overdue (0+ dpd) as on 31 March 2020 is lower than 31 December 2019. Further, deposits from micro banking customers continues to be strong and stable despite three weeks of lockdown.

On a standalone basis, the private lender's net profit jumped 120.7% to Rs 731.03 crore on a 63.3% surge in total income to Rs 3,075.34 crore in Q3 December 2019 over Q3 December 2018.

Bandhan Bank is a commercial bank, which offers a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services.

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