Private lender Bandhan Bank Ltd on Wednesday reported a 245% year-on-year (YoY) jump in net profit at ₹721.2 crore for the second quarter that ended September 30, 2023. In the corresponding quarter last year, Bandhan Bank posted a net profit of ₹209 crore, the company said in a regulatory filing. A CNBC-TV18 Poll had predicted a profit of ₹752.1 crore for the quarter under review.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 11.4%, coming at ₹2,443.4 crore against ₹2,193 crore in the corresponding quarter of FY23.

The gross non-performing asset (GNPA) stood at 7.32% in the September quarter against 6.76% in the June quarter. Net NPA came at 2.32% against 2.18% quarter-on-quarter.

In monetary terms, gross NPA stood at ₹7,874 crore against ₹6,960.4 crore quarter-on-quarter, whereas net NPA came at ₹2,365 crore against ₹2,140.7 crore quarter-on-quarter.

Provisions stood at ₹636.2 crore against ₹602 crore quarter-on-quarter and ₹1,280 crore year-on-year (YoY).

#2QWithCNBCTV18 | @bandhanbank_in's profit more than doubles from the same quarter last year pic.twitter.com/UP8xAzTmsn

— CNBC-TV18 (@CNBCTV18Live) October 18, 2023

Bandhan Bank's total deposits have surged to ₹1.12 lakh crore, reflecting a remarkable year-on-year growth of 12.8%. The bank has secured ₹43,196 crore in Current Account and Savings Account (CASA) deposits in the second quarter.

The CASA ratio, a vital measure of the bank's liquidity and low-cost funds, has shown improvement. It increased to 38.5% in Q2 FY24, compared to 36% in the previous quarter (Q1 FY24). Bandhan Bank's loan portfolio has grown to ₹1.08 lakh crore, registering a 12.3% year-on-year increase.

Notably, the bank experienced substantial growth in its retail loan books, excluding housing finance, which surged 80% year-on-year. The commercial banking book also demonstrated a robust 65% year-on-year growth, while the housing finance book grew by 4% year-on-year.

The bank's collection efficiency has seen a positive trend, with an overall improvement to 98% in September 2023 from 97% a year ago. Moreover, the collection efficiency for the EEB (Enterprise and Emerging Businesses) book has also risen to 98% from 95% over the same period. Impressively, Assam and West Bengal maintain a healthy 99% collection efficiency.

The Provision Coverage Ratio (PCR) has strengthened, reaching 70% as of September 30, 2023, up from 69.2% in the first quarter of FY24, highlighting prudent provisioning practices. The Net Interest Margin (NIM) percentage has improved to 7.2% in Q2 FY24, surpassing the 7.0% recorded in the second quarter of the previous fiscal year (Q2 FY23).

Bandhan Bank's Return on Assets (ROA) and Return on Equity (ROE), annualised for Q2 FY24, stand at 1.9% and 14%, respectively. The Capital to Risk-Weighted Assets Ratio (CRAR), which includes profits from the first half of FY24, stands at 20.6%, showing a slight improvement from the previous quarter (20.5%).

Banking outlets as of September 30, 2023, stood at more than 6,200. The network consists of 1,621 branches and 4,598 banking units. During the quarter, the number of employees of the bank has gone above 74,000.

The results came after the close of the market hours. Shares of Bandhan Bank Ltd ended at ₹238.00, down by ₹1.55, or 0.65 percent on the BSE.

(Edited by : Ajay Vaishnav)

First Published:Oct 18, 2023 4:13 PM IST